Sri Lanka has ushered in a new era of gambling regulatory framework to kick off 2026 with increases to the casino entrance levy and gross collection levy.
The country’s Inland Revenue Department issued a notice to casino operators and betting and gaming businesses in Sri Lanka following amendments to the Betting and Gaming Levy Act, No.40 of 1988, by the Betting and Gaming Levy (Amendment) Act No. 25 of 2025.
Effective from 1 January 2026, the casino entrance levy has been increased to $100, previously $50. This applies to every person who enters a gaming business in the country, with currencies accepted being US dollars, Sri Lankan rupee or its equivalent in any other convertible foreign currency.
In addition, Sri Lanka’s betting and gaming operators and businesses will be subject to a gross collection levy, which has increased from 15% to 18%, so long as the gross collection exceeds Rs1m per month.
Going through changes
It continues a wave of regulatory gambling changes in the past couple of months in Sri Lanka, which included the Gambling Regulatory Authority stepping in to oversee all gaming operations from 1 December, acting “as the sole independent regulator with a broad and overarching scope on operations in the gambling industry”.
The refresh to the country’s legislation replaces laws that were implemented back in the 1980s, with the Sri Lankan government hoping to “promote tourism, employment and economic development through the regulated operation of gambling activities”, alongside improving tax collection, fighting against the black market and encouraging iGaming expansion.
Sri Lanka’s cabinet approved a draft bill of the gambling regulatory changes back in February last year, before it was officially presented to parliament in June 2025.
The ambitions from Sri Lanka’s gambling sector to flourish in this new era are unwavering, with Melco Resorts & Entertainment’s Chair, Lawrence Ho, expressing his significant belief following the opening of the $1.2bn City of Dreams Sri Lanka project.
He stated to local media: “Sri Lanka can be to India what Macau is to China.
“Macau is by far the biggest gaming market in the world. Colombo is the closest destination to India, and an integrated resort like this gives the city a lot of potential.”
