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The Sri Lankan government is scrambling to get a new gambling regulator up and running before August hits. The whole thing is tied to Melco Resorts & Entertainment’s big casino project—City of Dreams Sri Lanka—which is supposed to open its doors on August 2nd.
What the Think Tank is Saying
Sudaraka Ariyaratne, a Research Consultant at Advocata Institute, told The Sunday Times that a regular may be important for the industry’s long-term vision, but the proposed Gambling Regulatory Authority seems to lack the independence necessary to provide proper management.
“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 stated. “That is not the case with this Gambling Authority Bill.”
The Melco Connection
Ariyaratne thinks the government is pushing this bill through so quickly because of Melco’s timeline. “I think the government is trying to push this bill through in a rush because Melco is coming next month,” he explained. “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,” Ariyaratne said. “They need to sustain a good reputation so that they can attract good customers to whom integrity is important.“
One of the biggest issues Ariyaratne highlighted is how much control the Finance Minister would have over the proposed regulatory authority. He suggested that the authority could end up being nothing more than “a proxy for the nation’s Finance Minister.”
Ariyaratne also believes the current bill might not even give the appearance of proper regulation. “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 he or she wants.“
How It Compares to Singapore
In their own analysis, The Sunday Times compared Sri Lanka’s proposed Gaming Authority Bill with Singapore’s gaming laws, which are considered the gold standard in the industry.
According to their analysis, while the new bill is “a positive and necessary step towards creating a modern, centralized regulatory system, it remains a skeletal framework when compared to the comprehensive, multi-layered and mature regime in Singapore.”
They also pointed out several specific problems with the Sri Lankan bill. They said it has “weak provisions for regulatory independence” and “vague suitability criteria for operators.” They also noted that it lacks “robust and specific harm-minimization tools like a comprehensive exclusion system” and has “technologically outdated enforcement powers against online gambling.”
What Needs to Change
Ariyaratne’s solution is pretty drastic but might be necessary. He believes that Sri Lanka would be better off withdrawing the current bill and introducing a more comprehensive version. That would mean starting over, but it might be the only way to develop something truly effective.
The Stakes Are High
The way Sri Lanka handles this regulatory framework will influence the gaming industry. If they get it wrong, it could affect investor confidence, tourism, and the industry’s long-term sustainability. Whether the government will listen to experts’ concerns or push ahead with their current plan remains to be seen.
The opening of City of Dreams Sri Lanka will determine whatever regulatory framework ends up being in place.
Source: Inside Asian Gaming (IAG)
