Displaced POGO Operators Establish Digital Networks in Sri Lanka Port City as Enforcement Drives Regional Migration
TL;DR — Former POGO operators are relocating to Sri Lanka’s Port City SEZ, recruiting from multiple countries and using local BPO firms to run platforms targeting restricted markets like Vietnam. Authorities recorded more than 1,000 arrests in 2026 and are updating rules under the Gambling Regulatory Authority Act effective December 2025. The moves expose gaps in containing offshore networks across South Asia.
SCCG Take — Sri Lanka must close its regulatory implementation lag to avoid becoming a successor hub. Enhanced regional cooperation with Vietnam and China is essential to manage the compliance and enforcement risks this migration creates.
Former Philippine offshore gaming operators and their personnel are relocating business operations to Sri Lanka after enforcement closed the sector in the Philippines. Networks are setting up in Colombo’s Port City Special Economic Zone and nearby districts, targeting users in jurisdictions where online gambling is restricted. Sri Lankan authorities are increasing collaboration with regional law enforcement and advancing regulatory changes in response, according to the Times of Casino and reporting by iGaming Today.
Operator Setup Tactics in Colombo
Recruitment networks are sourcing personnel from the Philippines, China, Vietnam, and Cambodia. Industry investigations have identified high-rise buildings in Fort, Town Hall, and Havelock City as operational hubs. Operators further utilize local business process outsourcing and information technology companies approved by the Board of Investment to secure company registration, office space, residency visas, and work permits.
These arrangements support regional platforms including KJC and P3Bet directed at users in Vietnam. Personnel also include workers linked to King Group, previously targeted in a Vietnamese cybercrime operation. Recruiters position the Port City’s specialized economic status as a stable alternative to prior Manila bases. More than 1,000 arrests of foreign nationals since the start of 2026 illustrate the scale of related activity already drawing official attention.
The Enforcement Challenge for Sri Lankan Authorities
Sri Lankan officials are cooperating directly with Chinese law enforcement on telecom fraud and unauthorized gaming while engaging counterparts in Thailand and Cambodia on cross-border tracking. Deputy Minister for Digital Economy Eranga Weeraratne stated that national gambling guidelines will explicitly cover all jurisdictions, including the Port City Special Economic Zone. The Gambling Regulatory Authority Act took force on December 1, 2025, but specific operational rules have faced administrative delays. Pending updates seek to harmonize land-based and digital rules across special financial zones.
The primary risk lies in the gap between the Act’s passage and full implementation. Without accelerated rulemaking, the economic incentives of the Port City zone may continue to attract networks that regional enforcement has displaced elsewhere. This pattern requires regulators to prioritize diplomatic coordination and statutory clarity to limit the establishment of replacement hubs. Operators and investors in adjacent markets should track Sri Lanka’s rulemaking timeline closely, as it will signal how quickly such migrations can be contained.
Reporting: Times of Casino
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
Sri Lanka is becoming the fallback hub for displaced offshore operators — enforcement lag creates real compliance risk regionally.
We've watched POGO networks migrate for years — Philippines to Cambodia, now Sri Lanka. Port City's SEZ status and BPO infrastructure make it attractive, but the regulatory framework is months behind the operational reality. That gap matters for anyone operating or investing in South or Southeast Asian markets where cross-border enforcement is already fragile.
- Over 1,000 arrests in 2026; operators recruiting across Philippines, China, Vietnam, Cambodia
- Platforms like KJC and P3Bet use Port City SEZ and local BPO firms for infrastructure and visas
- Gambling Regulatory Authority Act live Dec 2025, but operational rules still pending
SCCG angle: SCCG has direct regulatory and enforcement relationships across APAC. We help clients assess cross-border compliance exposure when offshore networks shift, connecting you to the right legal, government affairs, and intelligence partners in real time to stay ahead of enforcement and protect market access.
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