Sri Lanka’s Committee on Public Finance (CoPF) has called for swift action to establish the Casino Regulatory Authority, warning that delays are causing revenue losses from unregulated online gambling.
Lawmakers raised the issue in Parliament on March 6th, stressing the need for improved financial oversight. The CoPF has long advocated for a regulatory body to manage both land-based and online gambling. While land-based casinos are taxed, the growing online sector remains largely unregulated and untaxed.
CoPF Chair Harsha de Silva emphasized the urgency of the matter: “Despite our efforts, the online casino industry remains untaxed. We must act swiftly to ensure proper financial oversight.” The Attorney General’s Department has been tasked with expediting the legislation to create the regulatory body.
In February, Sri Lanka’s government announced plans to draft a bill for establishing the Casino Regulatory Authority. The Cabinet of Ministers has approved this initiative to improve oversight of the gambling sector.
The Ministry of Finance estimates that approximately $7.4 million in casino taxes remain in arrears due to the lack of regulatory enforcement.
Meanwhile, former State Minister Ranjith Siyambalapitiya disclosed that 10 new operators have applied for licenses to establish casinos in the country. These applications are still under evaluation, and no licenses have been issued so far.
Sri Lanka’s 2025 budget announcement also introduced key changes to casino-related fees and taxes. Casinos will face an 18 percent levy on gross collections, while the entrance fee will increase from $50 to $100 per person.
Sri Lanka’s gaming sector has attracted significant investment, including the $1.2 billion City of Dreams Sri Lanka project by Macau’s Melco Resorts & Entertainment and John Keells Holdings. The casino facility is scheduled to open in the third quarter of 2025.
