Following the POGO ban, many gray industry personnel chose to seek opportunities in Sri Lanka.
Sri Lanka, a country dominated by tourism and services, why has it become the choice for gray industry personnel? There are five reasons:
1. Geographical advantage: Sri Lanka is located in the center of the Indian Ocean, close to the main international shipping routes between Asia and Europe, covering South Asia, the Middle East, and East Africa, and has strategic geographical advantages.
2. Liberalized investment environment: Sri Lanka has one of the most liberalized business environments in Asia. The government allows foreign capital to enter all economic sectors except a few, and provides tax incentives and legal protection.
3. Policy support: The Sri Lankan government improves infrastructure through substantial public investment, introduces stable foreign investment policies, actively organizes overseas investment promotion activities, and enhances investment attractiveness.
4. High-quality labor force: The labor force in Sri Lanka has a high level of education, a high rate of English proficiency, and competitive labor costs.
5. Development of the tourism industry: Sri Lanka focuses on developing its tourism industry, has rich natural and cultural resources, attracts a large number of tourists, and provides a potential customer base for the gaming industry.
Early on, Sri Lanka had a history of gambling.
The history of the gambling industry in Sri Lanka can be traced back to the 1980s when the government's emphasis on tourism spurred the inception of gambling activities. However, early gambling activities were mostly underground with loose regulation. It was not until the 1990s, as tourism became a significant pillar of the national economy, that the gambling industry began to be regulated. The main development process is as follows:
1. 1990s: Legalization of the gambling industry
- To attract foreign tourists and investors, the Sri Lankan government began to formulate laws and regulations for the gambling industry. Gambling activities were mainly concentrated in tourist hotspots such as Colombo, where casinos and betting centers were gradually established.
2. 2000s: Industry expansion
- At the beginning of this century, Sri Lanka attracted a large number of international tourists, including those from China and India, further expanding the scale of the gambling industry. Casinos not only provided gambling services but also became venues for entertainment and high-end socializing.
3. 2010s: International attempts
- To further enhance competitiveness, Sri Lanka attempted to cooperate with international gambling enterprises, introducing modern gambling technology and services. In 2013, some international giants began to express interest in investing in large gambling complexes in Colombo. However, there was domestic controversy, and some projects did not materialize.
4. Policy fluctuations
- Over the past few decades, Sri Lanka's gambling industry policies have undergone multiple changes. Some governments encouraged the gambling industry to promote economic development, while others cracked down on the industry for social ethics and religious reasons. This instability in policy has somewhat limited the industry's development.
Currently, the gambling industry in Sri Lanka is mainly concentrated in the capital, Colombo, which has several well-known offline casinos, including:
Bally's Casino
As one of the most popular casinos in Sri Lanka, Bally's Casino offers about 60 table games, including Three Card Poker, Asian Poker, Baccarat, Blackjack, Mini Flush, and Roulette. Additionally, it regularly hosts live dance and music performances, providing customers with a rich entertainment experience.
Bellagio Colombo
Bellagio Casino is known for its high-quality service and diverse game selection. Customers can enjoy free drinks and food while experiencing excellent service.
Various reasons have long made Sri Lanka's gambling industry closely related to its tourism industry.
According to online information, the service sector is the largest component of Sri Lanka's economy, accounting for 58% of GDP, although the specific share of the gambling industry within the service sector is not separately listed.
The main customer base in Sri Lanka is foreign tourists, especially high-spending groups from China, India, and the Middle East, and they are mostly concentrated in Colombo and Nuwara Eliya.
Although not as large as the gambling hotspots in the surrounding areas (such as Singapore and the Philippines), the gambling industry in Sri Lanka is also an important part of its service industry, providing many job opportunities and tax revenues.
Currently, according to Sri Lankan investment regulations, the lottery business is a sector that requires government department approval depending on the situation, and online gambling has not yet been fully legalized.
Therefore, foreign investors, including Chinese citizens, who wish to engage in gambling-related businesses in Sri Lanka, need to obtain approval from the relevant departments.
This department is the Casino Regulatory Authority of Sri Lanka.
The main responsibilities of this authority include issuing casino operating licenses, supervising the operation of casinos, preventing money laundering and other illegal activities in the gambling industry, ensuring that operators comply with tax regulations, and maintaining the transparency and fairness of gambling activities.
At the same time, Sri Lanka's gambling activities are regulated by the Casino Business Regulation Act and the Casino Tax Act. These laws provide clear regulations on license application conditions, tax policies, and industry operating standards.
Applying for a gambling license requires meeting strict conditions, including submitting a detailed business plan, providing proof of financial status, meeting specific social responsibility and anti-money laundering regulations, and paying high license application fees.
According to current regulations, the cost of applying for a gambling license is about $2 million. Additionally, an annual renewal fee of about $1 million is required. The license is usually valid for one year and must be renewed on time to remain valid.
According to relevant Sri Lankan legal provisions, foreign shareholders in gambling enterprises cannot hold more than 40% of the shares. This means that at least 60% of the shares must be held by Sri Lankan citizens or entities.
To reduce social problems and illegal gambling activities, Sri Lanka has also strengthened the regulation of the gambling industry in recent years. (For example, the government requires casino operators to strictly implement identity verification and tax compliance policies.)
According to various online messages, some projects of the Oriental Group have moved to the area, and there are also several parks there.
What are the prospects for the development of the gambling industry in Sri Lanka?
1. Potential market
- Sri Lanka's advantageous geographical location, as the pearl of the Indian Ocean, and its continuously growing tourism industry. If policies are stable, the gambling industry can fully utilize the high demand from international tourists and become a new engine for economic growth.
2. Alignment with international standards
- To attract global gambling giants, Sri Lanka needs to continue to enhance industry norms, establish transparent and fair gambling laws. International cooperation can bring more advanced technology and management experience to the local gambling industry.
3. Opportunities in online gambling
- With the rise of the global online gambling industry, Sri Lanka can consider opening up the online gambling market, legalizing and regulating online gambling activities to further expand tax sources and industry influence. This point is really important. Opening up online gambling can attract many more customers than opening offline casinos.
4. Challenges and risks
- Policy uncertainty: Frequent policy adjustments may affect the confidence of international investors.
- Social ethical issues: Gambling activities may bring social problems such as gambling addiction, requiring a balance between economic benefits and social responsibilities. Legal constraints, community prevention, etc., are needed.
- Competitive pressure: Facing competition from mature gambling markets such as Singapore and the Philippines, Sri Lanka needs to find a unique positioning.
Finally, the gambling industry has great potential for Sri Lanka's economic development. By establishing a stable policy environment, attracting international investment, and actively developing the online gambling market, Sri Lanka has the potential to become an important gambling center in South Asia in the future.
However, this also requires the joint efforts of the government and businesses. Only if the industry develops healthily and sustainably while minimizing negative social impacts can this path be sustainable in the long run.
