- Media
Sri Lanka implements increases to casino and betting levies
The Sri Lankan Inland Revenue Department has issued a notice confirming as of 1st January 2026 that there has been an increase in casino entrance levies and gross collection levies for betting and gaming businesses, an action which had been approved by the Sri Lankan Cabinet in September 2025.
In its notice, the Inland Revenue Department stated that the Casino Entrance Levy had been increased from US$50 to US$100 on entrants. It continued that every person who carries on the business of gaming in Sri Lanka was required to collect US$100 or its equivalent in any convertible foreign currency through the entrance levy. It added that the levy could also be collected in Sri Lankan currency from Sri Lankan citizens who were to enter such gaming businesses.
With regard to the Gross Collection Levy, the Inland Revenue Department stated that this had been increased from 15% to 18% on every betting and gaming businesses. It said that this levy had been increased to 18% on the gross collection from the bookmaker or gaming business if such gross collection were to exceed Rs. 1 million per month.
The tax increases reportedly seem to have come along as the Sri Lankan Government is strengthening revenue mobilisation measures, particularly when it comes to sectors which are seen as having strong earning potential.
Betting and Gaming Levy Act
These revised fees and levies follow amendments made to Sri Lanka’s Betting and Gaming Levy Act, which is the country’s central law governing taxes on bookmakers and gaming businesses. Sri Lanka has also actively been overhauling its gaming laws throughout the past year, with the Sri Lankan Parliament recently having passed the Gambling Regulatory Authority Act, along with having repealed the previous Horse Racing Betting Ordinance, Gambling Ordinance, and Casino Ordinance.
Local outlet Economy Next has described the Betting and Gaming Levy Act as the central law that governs taxes on bookmakers and gaming businesses in Sri Lanka. Anyone conducting such business is required to pay an annual levy.
Gambling Regulatory Authority Bill
The Gambling Regulatory Authority Bill establishes a formal gambling regulator, that being the Gambling Regulatory Authority (GRA), which is tasked with the collection of gambling-related revenue, along with ensuring transparency and good governance in gambling operations, as well as preventing illegal gambling activities.
The Gambling Regulatory Authority Bill is stated to have a number of objectives, including promoting public confidence in the integrity of the gambling industry, ensuring that gambling is conducted in a fair and transparent manner, preventing unlawful activity in gambling, and ensuring the integrity and fairness of gambling products and practices. With that said, it is also made clear through the objectives stated within the Act that it is also intended to have an impact on the country’s tourism, as it is stated to have the objectives “to promote tourism, employment, and economic development through the regulated operation of gambling activities,” as well as “to provide facilities for gambling to maintain a minimum standard and to attract tourists”.
Sri Lankan lawmakers have spoken about how the GRA is intended to be an entity which standardises the country’s gambling sector, with a focus on strengthening compliance and mitigating potential social harm, while also supporting tourism and driving forward economic growth.
Officials have previously said during discussions to establish the GRA that between 60% to 70% of casino users in Sri Lanka play online, and that only 30% to 40% attend physical casinos.
As it stands, the target date for the GRA to be formally established is 30th June 2026.
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