Sri Lanka casino tax will increase under the 2025 budget after Cabinet approval of amendments to the Betting and Gaming Levy Act, which raise both the gaming levy and the entry fee for locals.
Sri Lanka casino tax amendment clears Cabinet with higher levy and doubled entry fee for locals.
The Sri Lanka casino tax is set for a significant revision as part of the 2025 budget, with Cabinet formally approving a proposal to amend the Betting and Gaming Levy Act. Cabinet Spokesman and Minister Nalinda Jayatissa confirmed that the Attorney General has cleared the draft bill prepared by the Legal Draftsman, paving the way for its publication in the government gazette before being presented to Parliament.
According to the amendment, the levy on betting and gaming will rise to 18 percent of gross takings from the current 15 percent. At the same time, the fee charged for Sri Lankans entering a casino will double to 100 US dollars, compared to the present 50 dollars. These measures are designed to generate additional government revenue at a time when the state continues to face fiscal pressures.
The Betting and Gaming Levy Act is the central piece of legislation governing bookmakers, gambling operators, and casinos in Sri Lanka. It requires businesses involved in betting or gaming to pay an annual levy, while also imposing a gross collection levy based on turnover. In addition, the law mandates an entry fee for individuals entering gaming establishments.
Officials noted that the 2025 budget proposals reflect the government’s broader efforts to strengthen public finances by targeting sectors that generate high turnover but are considered non-essential. The increase in the Sri Lanka casino tax is consistent with a trend of tightening oversight and revenue collection from the gaming industry, which has often been criticized for contributing less relative to its earnings.
The Cabinet approval marks a critical step in the legislative process, but the draft bill must still pass through Parliament before becoming law. Once enacted, the higher levy and doubled entry fee are expected to alter the operating landscape for casinos and related businesses, while also potentially curbing local participation due to the steep cost of entry.
By pushing ahead with these reforms, the government signals that gaming and betting operators will bear a larger share of the tax burden as part of the 2025 fiscal strategy. Market analysts will be closely monitoring how the higher Sri Lanka casino tax affects industry revenues and government collections in the months ahead.