Legal Betting in Sri Lanka

Review of the Legality of Betting in Sri Lanka

Gambling in Sri Lanka is governed by a complex framework of historical laws, cultural considerations, and emerging regulations. This article examines the legal status of betting, popular betting platforms, applicable laws, and permissible betting disciplines. It also addresses the economic impact of wagering and the rise of unauthorized betting activities.

Regulation of Betting

The primary legislation governing betting is the Betting and Gaming Levy Act No. 40 of 1988, amended by laws such as the Gaming Ordinance of 1887 and the Betting on Horse Racing Ordinance of 1932. These statutes prohibit most forms of gambling, both online and offline, except for state lotteries and horse racing betting. Sports betting and online gambling are generally illegal, except for activities authorized by the National Lotteries Board. Authorities actively monitor to curb illegal betting and mitigate associated social issues.

In 2024, the Sri Lankan Government introduced the Gambling and Sports Betting Regularization Bill to modernize the regulatory framework. This bill proposes establishing a central authority to regulate gambling, particularly sports betting, and issue licenses. As of June 2025, the bill awaits parliamentary approval.

Supplementary Information

• Legal lotteries are managed by the National Lotteries Board, offering products like Mahajana Sampatha and Govisetha.
• Horse racing betting is the only legal form of sports betting, permitted at licensed racecourses.
• Online sports betting is illegal, with enforcement actions targeting unlicensed websites.
• The proposed Gambling Regulatory Authority will oversee licensing and regulation.
• Informal "bookies" are prevalent, particularly for cricket betting, often operating without knowledge of handicapped odds.

Online Betting Sites

Due to strict regulations, legal betting is limited to government-operated entities like the National Lotteries Board, which includes the Development Lotteries Board and Mahajana Sampatha. Private online gambling sites are prohibited, though some international platforms are accessible to Sri Lankan users, operating without local licenses and posing legal risks. Licensed betting offices for horse racing exist in urban areas like Colombo and Ratnapura, restricted to racecourses such as Nuwara Eliya and Reid Avenue. Informal betting shops, often illegal, face frequent crackdowns.

Sports Preferred for Betting

Cricket is the most popular sport for betting, driven by its cultural significance and events like the Lanka Premier League, international Test matches, and the Indian Premier League. Football, particularly the English Premier League and UEFA Champions League, attracts urban bettors. Horse racing maintains niche interest through legal betting offices. Other sports, such as volleyball and rugby, see minimal betting activity.

Betting and Its Socioeconomic Consequences

Legal gambling, such as lotteries, supports public welfare in education, health, and infrastructure. However, illicit betting depletes household incomes, fosters addiction, and lacks adequate rehabilitation support. The black market also fuels organized crime. The proposed Gambling Regulatory Authority aims to address these issues through licensing and consumer protections.

Increase of Illegal Betting Operations

Strict laws have spurred the growth of illegal betting, including underground bookmakers and offshore online platforms, particularly for cricket. These operations often use encrypted networks to evade law enforcement, costing the government tax revenue and exposing bettors to risks like extortion. The proposed regulatory overhaul seeks to legalize and regulate sports betting to curb these issues.

Betting-Related Statistics

Aspect	Details
Legal Betting Revenue	Contributes to state welfare programs
Estimated Illegal Market	Driven by cricket and football betting
Popular Betting Locations	Colombo, Ratnapura, Nuwara Eliya
Regulatory Body (Proposed)	Gambling Regulatory Authority
Common Betting Age Group	20–40 years

Conclusion

The Betting and Gaming Levy Act of 1988 restricts most gambling in Sri Lanka to state-controlled lotteries and horse racing. The proposed Gambling and Sports Betting Regularization Bill, under discussion in 2025, aims to legalize and regulate sports betting through the Gambling Regulatory Authority. Cricket, football, and horse racing dominate betting activities, though much occurs illegally. Uncontrolled gambling poses social risks, and illegal operations undermine regulation. Effective implementation of the proposed law could foster a transparent, regulated betting environment.