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Much at stake in government’s critically defective Gambling Regulatory Bill
View(s):- Concerns over Finance Ministry’s unchecked powers undermining regulator’s authority
The government’s draft Gambling Regulatory Bill has no representation from the tourism sector, has exempted the lotteries sector, lacks provisions for online gambling, has weak revenue oversight and inadequate penalties for violations, a policy think-tank has warned.
The Colombo-based Advocata Institute has urged the government to withdraw the bill and redraft it, saying that its “most pressing flaw” is the “excessive and unchecked powers vested in the Minister of Finance, which compromise the independence of the regulator and jeopardise the integrity of the industry”.
“The independence of a regulatory body is non-negotiable,” Advocata Research Consultant Sudaraka Ariyaratne stresses in a statement. “Without it, we risk creating a framework that lacks credibility, is vulnerable to political interference, and cannot deliver on its mandate. In its current form, the bill does not create a regulator. It creates a proxy.”
He points out that, under the draft law, the minister holds “sweeping authority” to appoint the regulator’s director general and board members, issue binding directives and single-handedly make regulations.
“Such over-centralisation of power departs from international best practices and undermines the very rationale for a statutory regulator, which is to provide impartial, consistent and transparent oversight,” he states.
Other critical policy issues include that it exempts the National and Development Lotteries Board from regulation, even though lotteries are a form of gambling. “This leaves the state-run lottery industry unregulated, despite concerns over financial mismanagement and consumer protection,” Advocata points out.
The bill also ignores the growing online gambling sector with no requirements for patron registration or control over foreign-operated platforms. The think-tank recommends explicit provisions to regulate access and monitor harmful effects, particularly those emerging from cross-border digital platforms that have promotional partnerships with local sporting authorities.
The Authority lacks any mechanism to trace operator incomes or enforce tax compliance, leaving room for underreporting and revenue leakage.
Offences under the draft bill are met with fines as low as Rs. 100,000 and imprisonment up to two years, which are said to be “grossly inadequate for a billion-rupee industry”.
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