Increased Casino Entry Levy and Gaming Tax Structure
Under the new amendments to the Gaming Levy Act, the casino entry levy for both Sri Lankan citizens and international visitors will now stand at LKR 20,000 (approximately $65 USD), up from the previous LKR 10,000.
Additionally, the gaming tax rate on gross gaming revenue (GGR) for all licensed casinos will rise to 15%, an increase from the earlier 10% rate. These changes are part of a broader fiscal strategy to stabilize the national economy and curtail illicit gambling operations.
Government officials expect these measures to generate an additional LKR 5 billion ($16 million USD) annually in tax revenue. The increased taxation also aims to deter problem gambling among the local populace while maintaining an attractive environment for high-spending tourists. Operators have until December 31, 2025, to implement the new pricing structures and reporting mechanisms.
Impact on Sri Lanka’s Tourism and Gaming Sector
The gaming industry, a growing component of Sri Lanka’s tourism sector, includes several prominent venues in Colombo, such as Bally’s Casino and Bellagio Casino. While some operators express concerns about the immediate impact on foot traffic, the government believes the long-term benefits of enhanced regulation and revenue collection outweigh potential short-term dips.
According to Colombo Telegraph, Finance Ministry representatives emphasized that the new regulations align Sri Lanka’s gaming taxes with regional standards, ensuring fair competition and responsible operations.
“We are committed to fostering a sustainable and well-regulated tourism industry,” stated a ministry spokesperson, “and these adjustments are crucial for achieving that balance.” The government also plans to allocate a portion of the increased revenue towards tourism infrastructure development and social welfare programs.
Industry stakeholders are now adapting their business models to the updated tax regime. The Ministry of Finance indicated that further reviews of the gaming sector regulations might occur in late 2026, depending on the initial impact of these changes on revenue and tourism figures.
