Think Tank Advocata Questions Independence and Integrity of Proposed Gaming Regulator in Sri Lanka

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, Research Consultant at Advocata Institute, said to media 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.

Ariyaratne said: “If you look at the theory of regulation, it is very clear that the regulator has to be an independent body which gives credibility. 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.”

Ariyaratne added that Sri Lanka would be better served to withdraw its current bill and resubmit a more comprehensive version.