Online Gambling in Sri Lanka 2025 Legal Framework
Online gambling in Sri Lanka has long existed in a grey zone – neither fully legal nor explicitly banned. But as of June 2025, that ambiguity has ended. The enactment of the Gambling Regulatory Authority Act, 2025, ushers in a new era: online gambling is now legal, but only if it’s licensed, regulated, and compliant with a strict digital framework.
This sweeping reform repeals outdated legislation such as the Gaming Ordinance and the Casino Business (Regulation) Act, replacing them with a comprehensive, unified regulatory model under the Gambling Regulatory Authority (GRA)—a powerful body created to oversee all gambling activities, including software development.
The Gambling Regulatory Authority: A Digital Gamechanger
The GRA has been established to regulate, monitor, and license all types of gambling—physical, online, and digital software-based. It possesses expansive powers to:
- Grant or revoke licenses
- Monitor gambling sites and digital portals
- Audit software algorithms
- Ensure compliance with AML/CFT laws
- Enforce responsible gambling features
- Access financial data and block unauthorized portals
In essence, the GRA brings Sri Lanka into the modern era of gambling law—with a sharp focus on technology.
Yes, Online Gambling is Legal — But Only if Licensed
You can now legally gamble online in Sri Lanka—but only if the platform you’re using is licensed by the GRA. That includes:
- Online casinos
- Sportsbooks
- Live betting platforms
- Lottery websites
Unlicensed operations, including popular offshore betting sites, are now explicitly illegal. The GRA has the authority to block access to these platforms and penalize both operators and promoters.
Software Developers Now Under the Spotlight
A major and groundbreaking aspect of the 2025 Act is the regulation of gambling software under Section 33. For the first time, Sri Lankan law explicitly acknowledges and controls the role of software in online gambling ecosystems.
It is now illegal to develop, distribute, or operate gambling software in Sri Lanka without a valid license from the GRA.
What Software Developers Must Do:
To obtain a license, developers must submit:
- Technical specifications and design documentation
- Certified third-party audits of algorithmic fairness
- Proof of compliance with Sri Lanka’s Personal Data Protection Act, No. 9 of 2022
- Details of cybersecurity measures to prevent manipulation or unauthorized access
Design Standards and Prohibited Software Features
The Act sets firm boundaries for acceptable gambling software. It prohibits software that:
- Misleads users about odds or outcomes
- Enables unauthorized or underage access
- Lacks transparent, auditable algorithms
- Facilitates gambling outside licensed parameters
This ends the reign of shadowy platforms with manipulative practices. Compliance isn’t just encouraged—it’s enforced.
Mandatory Software Features for User Protection
Software must now include:
- Self-exclusion tools and loss/spend/time limiters
- Addiction warnings with links to support resources
- Geo-restrictions to block unauthorized jurisdictions
- User identity verification and anti-fraud mechanisms
Failing to implement these could lead to license revocation, fines, or criminal prosecution.
Licensing Procedures: What Applies to Software Applies to Operators
All the same rules that govern casino operators now apply mutatis mutandis to software developers:
- Licensing & renewal procedures (Sections 16, 21–32)
- License display on products
- Restrictions on transfer of licenses
- Notification of changes in corporate control
- Penalties and appeal mechanisms
Software is now regulated on par with gambling platforms – a bold but necessary move in the digital age.
Who Can Operate Online Gambling Platforms in Sri Lanka?
Only Sri Lanka-registered companies can apply for a gambling or software license. Applicants must:
- Pass financial and background checks
- Disclose directors, shareholders, and beneficial owners
- Meet minimum capital thresholds
- Provide certified operational protocols
Foreign companies may operate—but only through joint ventures or subsidiaries registered locally, and licensed under GRA conditions.
Digital Payments, Not Crypto
All gambling transactions must be made in Sri Lankan rupees or through approved payment gateways. Crypto-based betting remains outside the legal framework—a clear position meant to curb AML risks.
Is It Safe for Locals to Bet Online Now?
Yes – if you choose a licensed provider. Sri Lankan nationals can legally:
- Sign up for local online betting platforms
- Play digital casino games
- Place sports wagers
- Participate in licensed digital lotteries
However, using unlicensed foreign sites is now prohibited, and violators could face prosecution.
Regulatory Goals: Boost Tourism, Curb Crime
The GRA has a clear mission:
- Grow tourism through luxury gambling resorts
- Attract foreign direct investment
- Cut down illegal gambling networks
- Increase tax revenue
- Protect consumers
This law isn’t just about making betting legal—it’s about building a regulated, revenue-positive, responsible digital economy.
Conclusion: A Digitally Responsible Future for Gambling
The Gambling Regulatory Authority Act, 2025 is Sri Lanka’s definitive leap into modern digital regulation. Online gambling is now legal, licensed, and audited—with clear expectations for software developers, operators, and players alike.
By recognizing the role of gambling software and regulating it with the same seriousness as physical casinos, the law positions Sri Lanka as a regional leader in responsible, tech-driven gambling governance.
FAQs
Is online gambling legal in Sri Lanka in 2025?
Yes, if licensed by the Gambling Regulatory Authority.
Can I develop gambling software in Sri Lanka?
Yes, but only with a software-specific license from the GRA under Section 33.
Is it legal to use international betting sites?
Only if they are licensed under Sri Lankan law. Otherwise, access is blocked.
Are winnings taxed?
Operators pay a Betting and Gaming Levy. Player tax treatment may depend on income status.
Can foreign investors enter the market?
Yes, through local registration and licensing compliance.
What about games with cryptocurrencies?
They are not authorized. All gambling transactions must use fiat currency.
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