Sri Lanka’s Committee on Public Finance (CoPF) has urged the government to accelerate the creation of a Casino Regulatory Authority, warning that delays are resulting in significant tax revenue losses, particularly from unregulated online gambling.
Lawmakers raised the issue in Parliament on March 6, highlighting the need for stronger financial oversight. “Despite our efforts, the online casino industry remains untaxed. We must act swiftly to ensure proper financial oversight,” said CoPF Chair Harsha de Silva.
While land-based casinos in Sri Lanka are subject to taxation, the growing online gambling sector remains largely unregulated and untaxed, creating a financial gap in government revenues.
The Ministry of Finance estimates that $7.4 million in casino taxes remain unpaid due to weak regulatory enforcement.
In response, the government has tasked the Attorney General’s Department with fast-tracking legislation to create the Casino Regulatory Authority, which has already been approved by the Cabinet of Ministers.
Despite the absence of a regulatory body, former State Minister Ranjith Siyambalapitiya disclosed that 10 new operators have applied for casino licenses. These applications are still under evaluation, and no licenses have been issued yet.
Meanwhile, Sri Lanka’s 2025 budget introduced higher casino-related taxes, including:
• An 18% levy on gross collections.
• An increase in the casino entrance fee from $50 to $100 per person.
Sri Lanka’s gaming industry continues to attract foreign investment, including the $1.2 billion City of Dreams Sri Lanka project, a joint venture by Macau-based Melco Resorts & Entertainment and John Keells Holdings.
The casino is scheduled to open in Q3 2025, signaling growing investor confidence in the country’s gaming sector.
Original article: https://www.yogonet.com/international/news/2025/03/13/98027-sri-lanka-lawmakers-push-for-casino-regulator-to-curb-revenue-losses
