Sri Lanka raises casino, gaming levies from January
Sri Lanka’s Inland Revenue Department (IRD) has confirmed new tax measures for the betting and gaming sector, raising both the casino entrance levy and the gross collection levy with effect from 1 January 2026. The changes follow amendments to the Betting and Gaming Levy Act, No. 40 of 1988, introduced under the Betting and Gaming Levy (Amendment) Act, No. 25 of 2025.
“Casino Entrance Levy (CEL) has been increased from $50 to $100 on entrants,” the department said in its notice.
The levy applies to Sri Lankan citizens entering casinos. The notice further clarified operators’ obligations. “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 confirms that the higher entrance levy must be collected directly by gaming businesses from local patrons, either in foreign currency or in Sri Lankan rupees at the applicable exchange rate.
Gross collection levy increased to 18 percent
Alongside the higher entrance charge, the IRD 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 Businesses.”
The revised rate applies to operators whose monthly gross collections exceed LKR1 million ($3,228). According to media reports, this increase affects a wide range of licensed entities, including casinos, bookmakers, and other gaming operators operating within Sri Lanka’s regulated framework. The department reminded the sector that “Operators of Casino, business of betting and gaming are required to adhere to the above changes.”
Legal basis and effective date
The IRD notice makes clear that the measures are grounded in legislative changes approved by Parliament late last year.
Sri Lankan parliament passed the Betting and Gaming Levy (Amendment) Bill on 5 December 2025. The final constitutional step was completed when Speaker Dr Jagath Wickramaratne certified the Bill on 17 December 2025, formally bringing it into force as an Act of Parliament later that month.
The amendments were examined by the Committee on Public Finance in November 2025, before receiving parliamentary approval in December.
Impact on operators and patrons
Betting and gaming businesses must also adjust their accounting and reporting processes to reflect the higher gross collection levy rate where applicable.
In its announcement, the department has also urged gaming operators to comply fully with the new levy structure from the effective date. While the notice does not outline penalties for non-compliance, adherence to tax obligations is a condition of operating legally within Sri Lanka’s gaming sector.
The changes form part of broader fiscal measures approved last year, alongside amendments to the Social Security Contribution Levy and the Strategic Development Projects in the South Asian country’s framework. Together, these reforms reflect the Sri Lankan government’s focus on strengthening revenue collection from regulated sectors, including betting, gaming, and casino operations.
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