China and Sri Lanka are simultaneously strengthening controls on cross-border gambling, but through markedly different regulatory approaches. While Beijing is escalating enforcement against offshore operators, illegal payment networks and international betting organizations targeting Chinese citizens, Colombo is moving forward with a new regulatory authority that will, for the first time, centralize oversight of casinos, sports betting and online gambling under a single state entity.
The Chinese government continues to treat cross-border gambling as a national security priority. The crackdown is being led by the Ministry of Public Security (MPS) under Minister Wang Xiaohong, in coordination with the Supreme People's Court, headed by Chief Justice Zhang Jun, the Supreme People's Procuratorate, led by Procurator-General Ying Yong, and financial supervision agencies responsible for monitoring payments and capital flows. Authorities continue to enforce a zero-tolerance policy toward operators promoting gambling services to Chinese citizens from foreign jurisdictions.
Chief Justice Zhang Jun
Enforcement efforts have resulted in the detection of more than 17,000 cross-border gambling cases, the dismantling of over 2,800 illegal payment platforms, and the closure of more than 2,200 gambling promotion networks. Measures include asset freezes, monitoring of bank transfers, cryptocurrency oversight, payment-channel restrictions, financial intelligence sharing and law enforcement cooperation with governments across Southeast Asia. China's legal framework continues to prohibit casino operations and the promotion of gambling services to mainland Chinese residents, with only state-run lotteries permitted under national law.
President Anura Kumara Dissanayake
Sri Lanka is pursuing a different path. The administration of President Anura Kumara Dissanayake is implementing the Gambling Regulatory Authority Act No. 17 of 2025, legislation that establishes the new Gambling Regulatory Authority (GRA) as the country's sole gambling regulator. The authority is expected to become fully operational before June 30, 2026, and will oversee casinos, sports betting, online operators, offshore gambling activities, land-based gaming venues and gaming operations within Port City Colombo.
The new structure will replace the fragmented framework previously governed by the Gaming Ordinance, the Betting on Horse-Racing Ordinance and the Casino Business (Regulation) Act 2010, centralizing licensing, enforcement, AML/KYC compliance, consumer protection, responsible gambling and tax collection. The reform coincides with a more aggressive fiscal policy: beginning January 1, 2026, the gross gaming levy increased from 15 percent to 18 percent, while the casino entry levy doubled from US$50 to US$100.
The regulatory overhaul forms part of a broader economic strategy aimed at boosting tourism and attracting international investment. Among the most significant projects is City of Dreams Sri Lanka, developed by John Keells Holdings and Melco Resorts & Entertainment, a project valued at approximately US$1.2 billion and regarded as the largest private-sector investment in the country's history. Authorities aim to increase tourism revenue from approximately US$3.7 billion to US$5 billion while attracting 3 million international visitors annually.
The parallel developments highlight a growing regional trend across Asia. China is focused on preventing capital outflows and dismantling criminal gambling networks, while Sri Lanka is attempting to build a regulated gaming market capable of attracting tourism and investment without becoming a hub for illegal operators.
