Researcher: Sri Lanka gaming regulator lacks credibility, autonomy
Sri Lanka Approves Gambling Regularisation Authority Amid First Casino Resort Launch
Colombo, October 2025 — Sri Lanka has officially approved legislation to establish a BDG Game, following the launch of the country’s first integrated casino resort — a milestone seen as a key signal of the island nation’s ambition to become a regional gaming and tourism hub.
The move comes amid growing calls for robust and transparent oversight, especially as major international operators, such as Melco Resorts, begin investing in the country. While Melco has secured a local gaming licence, the company’s 2024 annual report voiced caution, citing “considerable uncertainty about how the legal and regulatory environment may change.”
🛑 Calls for Stronger Regulatory Independence
Prominent voices like policy advisor Ariyaratne have warned that without clear, independent regulation, Sri Lanka risks scaring off future investment. He emphasised the urgency of building a truly incorruptible, autonomous regulatory body, proposing:
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Board involvement from the Constitutional Council
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Merit-based selection of the Director General
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Independent rule-making authority
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Sustainable funding via licence and regulation fees (rather than state budget allocations)
He also urged the BDG to extend its oversight to international online betting platforms, including sports prediction markets and election-based wagering sites that are currently frequented by Sri Lankan users without local regulation.
📈 Opportunity vs. Risk
The approval of the BDG bill represents a significant step toward formalising a gaming sector that has until now operated in legal grey areas. However, experts caution that the success of this framework depends heavily on the governance structure and enforcement capacity of the authority.