Sri Lanka’s Inland Revenue Department has introduced new taxes for the betting and gaming industry, effective 1 January 2026. The changes raise the casino entrance fee and the gross collection levy for operators.

The move follows updates to the Betting and Gaming Levy Act, first passed in 1988 and recently amended by the Betting and Gaming Levy Amendment Act No. 25 of 2025. The department said the new rules apply to all licensed betting and gaming businesses in the country.

Casino Entrance Levy Set at 100 Dollars

Under the new law, the casino entrance fee for Sri Lankan citizens has increased. Casinos are responsible for collecting this fee from local visitors.

The notice stated, “Every person who carries on the business of gaming in Sri Lanka shall collect CEL of United States Dollars one hundred or its equivalent in any other convertible foreign currency or in Sri Lankan currency from Sri Lankan Citizen who enters into such place of business of gaming.”

This means every Sri Lankan entering a casino must pay the equivalent of 100 US dollars, in either foreign currency or Sri Lankan rupees at the current exchange rate. Casinos must update their systems to ensure the fee is correctly charged and recorded.

Gross Collection Levy Raised to 18 Percent

Alongside the higher entrance charge, the Inland Revenue Department has also increased the gross collection levy. This tax applies to betting and gaming businesses whose monthly gross collections are above LKR1 million, which is about $3,228.

In the notice, the department confirmed that “Gross Collection Levy has been increased from 15% to 18% on Every Betting & Gaming Businesses.” The increase affects casinos, bookmakers and other licensed gaming operators working within the regulated system in Sri Lanka.

The department also reminded the industry that “Operators of Casino, business of betting and gaming are required to adhere to the above changes.” This highlights the need for all operators to comply fully with the new rates from the start of the year.

Legal Backing and Wider Impact

The Inland Revenue Department said the new measures are backed by law. The Betting and Gaming Levy Amendment Bill was passed by parliament on 5 December 2025 and officially certified by the Speaker, Dr Jagath Wickramaratne, on 17 December. Businesses must update their accounting and reporting systems to reflect the higher tax rates.

While no penalties were mentioned, compliance with tax laws is required to operate legally in Sri Lanka’s gaming sector. The changes are part of current fiscal reforms, including updates to the Social Security Contribution Levy and rules for strategic development projects. These highlight the government’s effort to increase revenue from regulated industries like betting, gaming, and casinos.