Sri Lanka Implements Higher Fees and Levies for Casino Sector as 2026 Begins

Sri Lanka has moved swiftly to tighten its regulatory and fiscal approach to casino gaming, introducing higher costs for both players and operators effective from the start of 2026. From January 1, the government doubled the entry fee for Sri Lankan citizens at casinos from US$50 to US$100. In addition, the betting and gaming gross collection levy was raised from 15% to 18%, according to a notice issued by the Inland Revenue Department. These changes apply to all licensed betting and gaming businesses across the country.

The increased levy targets operators whose monthly gross collections exceed LKR1 million (approximately US$3,200). Both measures were enacted under the Betting and Gaming Levy (Amendment) Act No. 25 of 2025, which received cabinet approval in September 2025. The timing of the adjustments is particularly notable, coming shortly after the opening of City of Dreams Sri Lanka, the country’s first large-scale integrated resort featuring a casino. The project was developed by John Keells Holdings, with casino operations managed by Melco Resorts & Entertainment.

For policymakers, the move appears designed to secure a higher fiscal return from a sector that is still in the early stages of development. By increasing both the cost of entry for local players and the tax burden on operators, the government is signalling that growth in the casino market will be accompanied by firm revenue expectations. For operators and investors, the changes highlight how rapidly fiscal conditions can evolve once a new casino market becomes operational. The higher entry fees may influence patterns of local visitation, while the increased gross collection levy directly impacts profit margins.

Sri Lanka’s early approach establishes a clear framework for its casino sector: expansion is permitted, but it will be closely managed, with taxation and regulation positioned as central pillars of the market’s long-term structure.

By fLEXI tEAM