Former Philippine offshore gaming operators (POGO) and their personnel are reportedly relocating business operations to Sri Lanka following the sector’s enforcement closure in the Philippines. An investigation indicates several online gaming networks are setting up in Colombo’s Port City Special Economic Zone and nearby commercial districts, targeting users in jurisdictions where online gambling is restricted. In response to the influx, Sri Lankan authorities are collaborating with regional law enforcement partners and advancing national regulatory legislative updates to address the migration of these digital gaming entities. The shift reflects operators and staff moving into South Asia as enforcement tightens across established East and Southeast Asian hubs.

How Operators Are Setting Up in Colombo

Recruitment networks are actively sourcing personnel from the Philippines, China, Vietnam, and Cambodia to staff digital gambling operations now based in Sri Lanka. Industry investigations have identified specific high-rise buildings across Colombo, including locations in Fort, Town Hall, and Havelock City, as central operational hubs for these digital networks. In addition to operating directly inside the Port City Special Economic Zone, certain syndicates are utilizing local business process outsourcing (BPO) and information technology companies approved by the Board of Investment. These firms help foreign operators with company registration, office space, residency visas, and work permits for incoming staff. The localized infrastructure supports broader regional digital networks, such as KJC and P3Bet, which are reportedly managing platforms directed at users in Vietnam. Personnel registries also include workers linked to King Group, an entity previously targeted during a cybercrime enforcement operation conducted by Vietnamese authorities. The operational setup allows these businesses to maintain continuous digital facing platforms while navigating shifting regional enforcement campaigns that have restricted choices across Southeast Asian hubs. Recruiters present the Port City zone as a stable environment to attract displaced staff, using the specialized economic status of the development project to establish legal and physical footprints for international facing consumer lines. This relocation strategy depends on leveraging the host country’s existing business services to build functional alternatives to their closed Manila configurations.

How Sri Lanka and Regional Police Are Responding

The movement of online gaming networks to South Asia has prompted increased law enforcement actions and international diplomatic coordination. Sri Lankan authorities have recorded more than 1,000 arrests of foreign nationals since the start of 2026, primarily from China, Vietnam, and India, for cyber-related offences. This rising transaction volume has led to direct cooperation between Sri Lankan and Chinese law enforcement agencies tasked with mitigating international telecom fraud and unauthorized digital gaming operations. Concurrently, government representatives are communicating with counterparts in Thailand and Cambodia to manage cross-border operational tracking and personnel movement. To establish permanent oversight, the Sri Lankan government is refining its centralized domestic regulatory framework. Deputy Minister for Digital Economy Eranga Weeraratne stated that national gambling guidelines will explicitly cover all jurisdictions, including the Port City Special Economic Zone. Although the Gambling Regulatory Authority Act officially came into force on December 1, 2025, the implementation of specific operational rules has experienced ongoing administrative delays. The pending statutory updates seek to harmonize land-based and digital gambling rules to ensure comprehensive compliance across special financial zones and traditional economic sectors, balancing capital collection goals against transnational crime prevention obligations. You may also like to read – Major Sportsbooks Phase Out Credit Card Payments as Focus Shifts to Responsible Gambling