The government doubled the casino entry fee for locals to $100 and lifted the betting and gaming levy from 15 to 18 percent of gross revenue, according to the Inland Revenue Department. The amendments to the Betting and Gaming Levy Act took effect on January 1st.
“This is a clear signal of how fast regulatory risk can change in Asia,” said Ram Mohan, an Indian business developer with experience in the gaming sector. “Operators are being asked to absorb multi-fold increases in licence fees with almost no time to prepare.”
Under the new rules, casino operators face steep annual licence costs, while betting shops, gaming machines and online platforms are drawn into a tighter compliance net. “Short timelines mean you either pay up, restructure, or exit,” Mohan warned.
The shift to turnover-linked levies is expected to hit high-volume, low-margin operators hardest. “You pay even when margins are thin – profitability is compressed overnight. For B2C brands this is brutal, and for B2B suppliers it forces a rethink of how deals are priced and risk-shared,” the business development manager at Czar Gaming commented.
Officials have coupled the higher levies with stricter enforcement and penalties for non-compliance, signalling a tougher stance against unlicensed and grey-market operations. “This isn’t just about more tax – it’s about formalising control. Banks and payment partners will become far more conservative around non-compliant traffic,” Mohan added.
The overhaul amends the Betting and Gaming Levy Act, first enacted in 1988 to regulate Sri Lanka’s gambling sector. The law originally imposed fixed fees and softer tax bases, but the 2025 amendment – certified by parliament last year – introduced turnover-based levies and doubled the casino entrance fee. Officials say the changes are aimed at tightening compliance and boosting state revenue.
Industry experts say the new regime will force Asia-focused operators to reconsider their exposure to Sri Lanka, increase the value of compliant local partnerships and accelerate demand for platforms that can adapt quickly to multi-jurisdictional rules.
“At CZAR Gaming, our priority is helping partners stay ahead of these shifts,” Mohan said. “That means configurable tax engines across markets, rapid rule updates without code changes, and transparent reporting for regulators and auditors.”
Dingnews.com 09/01/2026