Sri Lanka enforces higher casino entry levy and gaming tax rates from January 2026

Sri Lanka has implemented higher tax charges on casinos and betting and gaming businesses from 1 January 2026, increasing both the casino entrance levy and the gross collection levy under amendments to the Betting and Gaming Levy Act, the Inland Revenue Department said.

Under the revised framework, the Casino Entrance Levy payable by Sri Lankan citizens entering casinos has been doubled. “Casino Entrance Levy (CEL) has been increased from $50 to $100 on entrants,” the department said in its notice. The levy is required to be collected directly by gaming operators.

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 a Sri Lankan Citizen who enters into such place of business of gaming.”

The department has also raised the gross collection levy applicable to betting and gaming operators. According to the notice, “Gross Collection Levy has been increased from 15% to 18% on Every Betting & Gaming Business.”

The higher rate applies to operators whose monthly gross collections exceed LKR 1 million, or about $3,228. Media reports indicate that the increase affects licensed casinos, bookmakers, and other regulated gaming businesses operating in Sri Lanka.

The Inland Revenue Department reminded operators that compliance with the revised levies is mandatory from the effective date. “Operators of casinos, business of betting and gaming are required to adhere to the above changes,” the notice said. The department did not specify penalties for non-compliance.

The tax increases follow amendments to the Betting and Gaming Levy Act, No. 40 of 1988, introduced through the Betting and Gaming Levy (Amendment) Act, No. 25 of 2025.

Parliament passed the amendment bill on 5 December 2025 after review by the Committee on Public Finance in November. Speaker Dr Jagath Wickramaratne certified the bill on 17 December 2025, completing the legislative process.

Parliament has also passed the Gambling Regulatory Authority Bill, repealing the Horse Racing Betting Ordinance, Gambling Ordinance, and Casino Ordinance. The new law establishes a Gambling Regulatory Authority responsible for revenue collection, governance oversight, and the prevention of illegal gambling. The government has set 30 June 2026 as the target date to formally establish the authority.