Sri Lanka Cabinet Approves Gambling Tax Hike and Doubles Local Casino Entry Fees

The Sri Lankan government has passed significant regulatory changes for its betting and gaming industry, with the Cabinet approving a 2025 budget measure raising operator levies from 15% to 18%. Also, domestic casino entry fees will double from $50 to $100. The Attorney General’s Office confirmed the legality of these amendments to the Betting and Gaming Levy Act, approving its parliamentary review.

Officials confirmed the revised policy awaits publication in the Government Gazette, followed by the parliamentary debate. These changes seek to boost state revenues amid the country’s strained economic recovery efforts, targeting sectors perceived as underutilized revenue streams.

Tightening Revenue Sources

The revisions to Sri Lanka’s Betting and Gaming Levy Act target operational turnover and citizen access, redefining fiscal obligations for a rapidly expanding industry. Cabinet Spokesperson Nalinda Jayatissa confirmed the process complies with the law, stating, “Clearance of the Attorney General too has been granted for the draft bill. The Cabinet of Ministers approved the proposal to publish the draft bill in the government’s gazette notification and subsequently forward it to Parliament for its approval.”

These adjustments coincide with the sector’s growth, especially the launch of Melco Resorts’ City of Dreams Sri Lanka, Sri Lanka’s first international-scale integrated resort. The development is part of a push to attract affluent Indian travelers.

Risks and Social Responsibility

Economists warn that the tax and local casino fee hikes could strain operator margins while deterring domestic gamers. “The proposed increase will likely reshape the casino sector,” cautioned Tourism & Hospitality Specialist Dr. Dharshana Weerakoon. He noted potential overreliance on foreign visitors despite revenue gains.

Authorities brand the doubling of local fees as a public health intervention that aligns with social responsibility goals that reduce domestic gambling-related harm. They explain that the measures aim to balance economic needs with community safeguards.

Strengthening a Blossoming Framework

Sri Lanka continues to build on its regulatory environment, which started with establishing the Gambling Regulatory Authority (GRA). This centralized oversight of casinos, horse racing, and offshore gaming platforms.

Deputy Economic Development Minister Dr. Anil Jayantha Fernando outlined the regulator’s duty to maintain compliance and financial integrity. “The regulator will ensure that casinos operate according to rules, and concerns about money laundering are also addressed,” he explained.