The Sri Lankan Cabinet of Ministers has approved amendments to the Betting and Gaming Levy Act as part of the measures under the 2025 Budget. The reforms are intended to increase fiscal revenue while tightening gambling control.

The most notable changes include a rise in the levy imposed on betting and gaming operators and a sharp increase in the casino entry fee charged to local residents. These measures reflect the government’s commitment to strengthening its fiscal position while ensuring that gambling activities remain under tighter regulation.

Key Amendments to the Levy Act

Following clearance from the Attorney General, the government confirmed that the levy on the gross collections of betting and gaming operators will increase from 15% to 18%. At the same time, the entry fee for Sri Lankan citizens wishing to visit casinos will double from 50 dollars to 100 dollars.

Authorities stressed that these measures form part of efforts to align tax policy with evolving fiscal needs. The Ministry of Finance has tasked the Legal Draftsman with preparing the necessary amendments to the Betting and Gaming Levy Act No. 40 of 1988. Once finalised, the draft bill will be published in the Government Gazette and submitted to Parliament for debate and approval.

Strengthening Oversight of Gambling

The proposed changes arrive at a time of heightened attention on Sri Lanka’s gambling sector. In August, the Committee on Public Finance approved a separate bill to establish the Gambling Regulatory Authority. The new body will oversee the sector, providing a more structured regulatory framework.

The Betting and Gaming Levy Act already requires bookmakers and operators to pay several levies, including an annual payment, a gross collection levy, and fixed entrance fees for casinos. The upcoming adjustments build on this framework by expanding the scope of levies and raising financial requirements for operators and players.

Officials noted that the timing of the implementation will depend on parliamentary approval. However, the new rules will significantly influence the regulatory and financial environment of the industry once passed. 

Impact on Operators and Players

For operators, the increase in the gross collection levy represents a higher cost of doing business. Analysts suggest this could encourage companies to reassess their operations and pricing strategies in order to absorb the additional financial burden.

For local players, the doubling of the entry fee creates a higher barrier to casino access. Authorities argue that this measure will not only support government revenue but also serve as a barrier to casual gambling among Sri Lankan citizens.