Sri Lanka is tightening its response to illegal online gambling as businesses and workers formerly linked to Philippine Offshore Gaming Operators (POGOs) seek new operating bases, with Colombo Port City emerging as one destination.
Workers from China, the Philippines, Vietnam and Cambodia have reportedly moved to Sri Lanka for online gaming jobs following the Philippines’ decision to dismantle its offshore gambling industry.
Philippine President Ferdinand Marcos Jr. ordered POGOs to shut down in 2024 after years of criminal investigations and regulatory concerns. The ban was later reinforced through the Anti-POGO Act of 2025.
Sri Lankan authorities have since blocked 122 online gaming platforms targeting local users and established a new gambling regulator. Further regulations are expected to cover operators in Colombo Port City as well as elsewhere in the country.
Colombo Port City operates under a special economic framework intended to attract foreign investment, but gambling businesses operating there remain subject to Sri Lanka’s developing regulatory system.
The shift highlights how efforts to dismantle offshore gambling networks in one jurisdiction can push businesses and workers into new markets, creating fresh regulatory challenges for countries seeking to prevent illegal activity.
The Philippines has expanded its response beyond closing POGO facilities, introducing common enforcement procedures covering investigations, prosecutions, evidence handling and asset preservation.
Authorities are also using civil forfeiture to target property and other assets linked to unlawful POGO operations, allowing agencies to disrupt the financial infrastructure behind illegal businesses rather than relying solely on shutting individual facilities.
Proceedings have included properties linked to offshore gaming businesses and foreign nationals accused of unlawfully acquiring land in the Philippines. Some seized POGO facilities have also been considered for government use, including accommodation for trafficking victims.
At the same time, authorities have tightened controls on legal domestic online gambling. The Philippine Amusement and Gaming Corporation (PAGCOR) has introduced stronger customer identification requirements, including verification before deposits, while advertising restrictions have expanded.
Authorities have also introduced self-exclusion measures and a national problem gambling helpline, with broader restrictions on gambling advertising across broadcast platforms under consideration.
Enforcement remains difficult because many illegal operators are based outside Philippine jurisdiction. Cyber authorities told lawmakers that about 50,000 gambling sites had been blocked, with around 95% to 97% operating from overseas.
Officials have consequently discussed stronger international legal cooperation to pursue operators beyond the Philippines.
The regulatory campaign comes as legal gaming revenue in the Philippines declines.
PAGCOR reported second-quarter 2026 gross gaming revenue of PHP88.13 billion ($1.44 billion), down 20% from a year earlier. First-quarter revenue had already fallen 15.9% year-on-year to PHP87.60 billion ($1.43 billion).
PAGCOR also reported a 26.7% decline in total revenue in the first half of 2026, citing slower earnings from gaming operations.