The measure applies to both land-based and online gaming. Officials say 60% to 70% of gamblers continue to use illegal offshore providers. Penalties for unlicensed iGaming include fines of up to Rs. 10 million ($107,000) or up to two years’ imprisonment.
The Gambling Regulatory Authority, established in 2025, will enforce the law and is expected to be fully operational by the end of June.
Sri Lanka links gaming, tourism
As Sri Lanka continues its recovery from the Sri Lankan economic crisis, officials are increasingly linking the gaming sector to tourism growth. The government is targeting up to 3 million visitor arrivals this year, exceeding the 2.3 million recorded in 2025. Part of the strategy is to position the country as a premium destination for high-end travelers, including gaming enthusiasts. The tourism revenue goal of $4.5 billion is based on an average daily spend of $160 per visitor, up from $140 last year.
With the gaming levy raised from 15% to 18% and higher casino entry fees imposed on locals, authorities expect the sector to generate an additional $250 million annually. However, land-based casino revenue is projected to rely heavily on foreign visitors. One estimate suggests that the local entry fee—doubled from $50 to $100 last year—now represents around 40% to 60% of the starting monthly salary of an office worker in Colombo.
To broaden its reach, Sri Lanka is targeting multiple international markets. According to the chairman of the Sri Lanka Tourism Development Authority, the country sees strong potential in attracting visitors from Saudi Arabia, the wider Middle East, and the United States.
Meanwhile, industry sentiment appears optimistic. On the sidelines of Global Game Connect, a representative from Diamante Tech noted that tighter gaming regulations have made Sri Lanka more attractive to global manufacturers and suppliers. The representative added that growing interest in the market signals strong future potential, describing it as a positive development and a significant opportunity for expansion.
