By: Staff Writer
June 30, Colombo (LNW):The Advocata Institute has called on the Sri Lankan government to withdraw and redraft the proposed Gambling Regulatory Authority Bill, warning that the current version threatens the integrity and credibility of the gambling sector due to excessive control vested in the Minister of Finance.
According to Advocata Research Consultant Sudaraka Ariyaratne, the draft law fails to establish a truly independent regulatory body, a key principle in maintaining transparency and preventing political interference. “In its current form, the Bill does not create a regulator; it creates a proxy,” he said, noting that the proposed framework grants unchecked powers to the Minister, who would control the appointment of the Director General and board members, issue binding directives, and formulate regulations unilaterally.
Such centralized authority undermines international regulatory best practices, which emphasize impartiality, consistency, and separation from political influence. Advocata recommends that board appointments be subject to Constitutional Council approval, that the Director General be selected through a competitive process, and that regulatory power rest with the Authority itself—similar to models like Sri Lanka’s Securities and Exchange Commission.
Beyond the issue of independence, Advocata has also identified several other policy flaws in the Bill. One key concern is the lack of representation from the tourism sector, despite the close ties between gaming and tourism. The Bill fails to include the Sri Lanka Tourism Development Authority (SLTDA) as an ex-officio member and does not consider hospitality experience as a qualification for board appointments.
The draft also exempts the National and Development Lotteries Boards from regulatory oversight, even though lotteries are widely recognized as a form of gambling. This loophole leaves state-run lotteries unregulated, raising concerns over financial mismanagement and consumer protection.
Another major oversight is the absence of provisions for regulating online gambling. The Bill does not address online platforms or require user registration, nor does it consider how to manage cross-border gambling sites that often partner with local sporting bodies. Advocata stresses the need for clear rules to monitor digital platforms and minimize harm to consumers.
Additionally, the current draft lacks effective mechanisms to trace revenues or enforce taxation, raising fears of underreporting and significant revenue leakage. Penalties for violations are also deemed too weak, with fines as low as Rs. 100,000 and limited imprisonment terms—far too lenient for an industry valued in billions.
While Advocata acknowledges the importance of establishing a regulatory authority, it insists that the legislation must be fundamentally revised. The institute is calling for broad public consultation and expert input to ensure the final Bill promotes a credible, independent, and modern regulatory regime that serves both the industry and the public interest.
