A Sri Lankan policy think tank has questioned the independence and integrity of the country’s proposed new regulatory body as the government rushes to put the agency in place ahead of next month’s launch of Melco Resorts & Entertainment’s City of Dreams Sri Lanka.
Sudaraka Ariyaratne, a Research Consultant at Advocata Institute, told local media outlet The Sunday Times that while establishing a regulator was vital to the industry’s long-term future, the planned Gambling Regulatory Authority appears to lack the independence needed to provide 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.”
Ariyaratne, who stressed that his think tank supports the idea of a legal, regulated gambling industry, added that the Gambling Regulatory Authority in its current form risks being a proxy for the nation’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 he or she wants.”
In an analysis of its own, The Sunday Times said it had compared Sri Lanka’s proposed Sri Lankan Gaming Authority Bill with the gaming laws of Singapore – to this day considered an industry gold standard – and found that 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.
“Its primary shortcomings lie in its weak provisions for regulatory independence, its vague suitability criteria for operators, its profound lack of robust and specific harm-minimization tools like a comprehensive exclusion system, and its technologically outdated enforcement powers against online gambling.
“The Bill appears philosophically weighted towards economic promotion and revenue collection, whereas Singapore’s laws, while facilitating a viable industry, are built on bedrock of stringent control and social protection.”
Ariyaratne added that Sri Lanka would be better served to withdraw its current bill and resubmit a more comprehensive version.
The commentary comes as Melco prepares to hold the official opening ceremony for City of Dreams Sri Lanka – located in the Cinnamon Life building in Colombo – on 2 August.
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