Sri Lanka hikes gaming taxes and local casino fees

Sri Lanka has enacted a stricter fiscal regime for its gaming sector, raising both the taxes imposed on operators and the entrance fees for domestic players. The new measures, officially announced by government authorities, came into effect on January 1, 2026, signaling a more regulated and revenue-focused approach to the industry.

Higher Entry Fees for Locals
Under the updated framework, Sri Lankan citizens now pay a doubled casino entry levy, rising from US$50 to US$100. The policy targets local participants specifically, while international visitors remain subject to separate arrangements, balancing domestic regulation with tourism incentives.

Increased Operator Levies
The gross collection levy for betting and gaming businesses has been raised from 15% to 18%, applied to operators exceeding a monthly threshold of LKR 1 million (around US$3,228). This adjustment ensures that larger, commercially significant operators contribute a proportionally higher share to state revenue. The changes are backed by the Betting and Gaming Levy (Amendment) Act No. 25 of 2025, formalizing the new tax framework.

Policy Timing and Industry Context
These fiscal updates follow Cabinet approval in September 2025 and coincide with the opening of the City of Dreams Sri Lanka, the country’s first large-scale integrated resort. Developed by John Keells Holdings and managed by Melco Resorts & Entertainment, the property underscores Sri Lanka’s growing ambitions in gaming and tourism.

A Coordinated Regulatory Approach
By pairing tax increases with high-profile industry developments, the government has created a strategic regulatory and fiscal environment. The new rules ensure that as the market expands with international-standard resorts, both operators and domestic players contribute to the state’s revenue, supporting sustainable growth of the sector.