Former Philippine offshore gaming operators (POGOs) and their workers are reportedly relocating to Sri Lanka, with Colombo’s Port City Special Economic Zone emerging as a potential base for online gaming businesses targeting overseas markets.
An investigation by MonetaBrief, published by Sri Lankan newspaper The Island, found that some major online gaming syndicates operating in Sri Lanka appear linked to former POGOs. The Philippine government shut down the sector after banning offshore gaming operations.
Sri Lanka Emerges as a New Operating Base
According to the investigation, recruiters are targeting former gaming workers from the Philippines and other Asian countries. Some advertisements reportedly promote Sri Lanka, particularly Port City, as a more stable location for online gaming businesses.
Thousands of workers from China, the Philippines, Vietnam, and Cambodia have reportedly moved to Sri Lanka to work for operations targeting markets where online gambling remains restricted or prohibited. The investigation also identified cases involving workers who allegedly lacked valid work permits.
Furthermore, larger gaming groups reportedly operate either within the Port City ecosystem or through Board of Investment-approved business process outsourcing (BPO) companies. Some Sri Lankan BPO and IT firms allegedly assist operators with business setup, residence visas, and work permits.
The investigation identified several high-rise buildings in Colombo’s Fort, Town Hall, and Havelock City areas as potential hubs for online gaming operations.
Sri Lanka Faces Growing Regulatory Pressure
Deputy Minister for Digital Economy Eranga Weeraratne told The Island that Sri Lanka’s planned gambling regulations would apply nationwide, including Port City. He added that the government and law enforcement agencies are discussing online gaming activity and strengthening cooperation with countries such as Thailand and Cambodia.
The investigation also named KJC and P3Bet as large online gaming networks allegedly operating from Sri Lanka and targeting Vietnam. It further reported that King Group, which Vietnamese authorities targeted during a cybercrime crackdown in July, had recruited workers for operations in Sri Lanka.
Meanwhile, enforcement agencies have increased scrutiny of online gambling and scam networks. More than 1,000 foreign nationals, mainly from China, Vietnam, and India, had reportedly faced arrest for cybercrime-related activities in Sri Lanka since the beginning of 2026.
Sri Lanka Develops New Gambling Framework
Sri Lanka is also building a new regulatory framework for the gambling sector. The Gambling Regulatory Authority Act took effect on December 1, 2025, covering both land-based and digital gambling. However, authorities have yet to fully implement the framework as regulations face delays.
As Sri Lanka strengthens oversight, the reported arrival of former POGO-linked businesses could test the country’s ability to regulate cross-border online gaming while preventing illegal gambling and cybercrime networks from taking root.
