Rush to Regulate Ahead of Melco Launch
A Sri Lankan policy think tank has raised concerns about the independence and integrity of the country’s proposed new gambling regulator, criticizing the government’s rush to establish the body ahead of next month’s launch of Melco Resorts & Entertainment’s City of Dreams Sri Lanka.
Sudaraka Ariyaratne, a Research Consultant at the Advocata Institute, told local media outlet The Sunday Times that while creating a regulator is crucial for the industry’s long-term stability, the planned Gambling Regulatory Authority lacks the necessary independence to ensure proper oversight.
“If you look at the theory of regulation, it is very clear that the regulator has to be an independent body which gives credibility,” Ariyaratne said. “That is not the case with this Gambling Authority Bill. I think the government is trying to push this bill through in a rush because Melco is coming next month. We think Melco would’ve wanted a regulator in place. When it comes to these big names in the gaming industry, the integrity of the market is a big consideration, given the image of the industry as a whole. They need to sustain a good reputation so that they can attract good customers to whom integrity is important.”
Concerns Over Ministerial Control
Ariyaratne, who emphasized that Advocata supports a legal, regulated gambling sector, argued that the proposed Gambling Regulatory Authority risks becoming a proxy for the country’s Finance Minister.
“Even if it’s not a proper regulator, as long as it gives the perception of integrity, that’s what [operators] are looking for, to engender market confidence,” he said. “The danger with this bill is that it won’t even give a perception of integrity if the Minister of Finance can basically do whatever they wants.”
Comparison to Singapore’s Gold Standard
In its own analysis, The Sunday Times compared Sri Lanka’s proposed Gambling Authority Bill with Singapore’s well-established gaming laws, widely seen as an industry benchmark. The paper concluded that while Sri Lanka’s bill is a positive and necessary step toward a modern, centralized regulatory system, it remains a skeletal framework when compared to Singapore’s comprehensive, multi-layered regulatory regime.
According to the paper, key weaknesses in the bill include:
- Weak provisions for regulatory independence
- Vague suitability criteria for operators
- A lack of robust harm-minimization tools such as comprehensive exclusion systems
- Outdated technological powers for enforcing controls against online gambling
Furthermore, The Sunday Times noted that the bill seems focused more on economic promotion and revenue collection than on stringent control and social protection, which underpin Singapore’s laws.
Call for a Stronger Framework
Ariyaratne urged lawmakers to withdraw the current bill and resubmit a more comprehensive version, one that could match international standards and foster both market confidence and social safeguards.
Meanwhile, Melco is preparing to hold the official opening ceremony for City of Dreams Sri Lanka, located in the Cinnamon Life building in Colombo, on 2 August.
