The government of Sri Lanka has implemented significant changes to its gambling tax structure, effective January 1, as part of a broader effort to stabilize the economy and increase fiscal revenue.
Under the new laws, the casino entry levy for Sri Lankan residents has doubled from $50 to $100.
Fiscal Strategy and Implementation
Per the Inland Revenue Department, operators are now required to collect this fee “in any other convertible foreign currency or in Sri Lankan currency” from any citizen entering a gaming facility. In addition to the entry fee hike, the parliamentary amendment has raised the betting and gaming tax from 15% to 18% on gross revenue for operators earning over Rs 1 million ($3,226) monthly.
These measures are designed to increase the state’s fiscal intake from a growing sector. The government projects the gaming industry will generate $410 million in revenue by 2026, a sharp rise from just $240 million in 2020. The increased revenue is seen as vital for refilling government coffers depleted during the 2022 economic crisis, which forced the country to declare bankruptcy.
Integrated Resort Growth
The gambling tax changes come as Sri Lanka positions itself as a regional gaming hub, anchored by the new City of Dreams Sri Lanka integrated resort. A joint venture between John Keells Holdings and Melco Resorts, the property aims to attract tourists from India, China, Southeast Asia, and the Middle East.
Melco CEO Lawrence Ho has been bullish on the prospect, stating that “Sri Lanka can be to India what Macau is to China.” To manage this expansion, the country’s first independent Gambling Regulatory Authority is scheduled to be operational by June 30.
