Sri Lanka's cabinet recently approved the 2025 budget, announcing adjustments to the tax policy for the gambling industry. According to the new regulations, the tax on gambling and gaming will be increased from 15% to 18%, and the entry fee for casinos for the country's citizens will be raised from 50 USD to 100 USD. This policy change was officially announced by the cabinet spokesperson and Minister of Health and Media, Nalinda Jayatissa, after the cabinet meeting on Tuesday.
This tax adjustment coincides with a critical period in the development of Sri Lanka's gambling industry. Six weeks ago, the country's first international standard integrated resort and casino "City of Dreams Sri Lanka" officially opened, managed and operated by the globally renowned MGM Resorts International. The new tax policy will directly affect gambling businesses with monthly revenues exceeding 1 million Sri Lankan rupees (approximately 3,315 USD).
According to the budget details, the total income tax rate for the gambling industry will increase by three percentage points to 18%. At the same time, the cost for local citizens to enter casinos has doubled, adjusting from 50 USD to 100 USD. These adjustments will be incorporated into the "Gambling and Gaming Taxation Act" amendment, but will only take effect after parliamentary approval.
It is noteworthy that the Sri Lankan parliament just passed the "Gambling Regulatory Authority Act" in August this year, which allows for the establishment of a dedicated gambling regulatory authority and abolishes some of the current regulatory measures. Analysts believe that this tax rate adjustment is a continuation of Sri Lanka's efforts to improve the regulatory system for the gambling industry, and it is expected to have an impact on the operating costs of the gambling market and consumer participation.
Industry observers point out that adjustments to tax policies usually affect the operating costs of gambling businesses and the participation costs of consumers, which may further affect the market's activity. The Sri Lankan government's move is likely aimed at finding a balance between promoting tourism development and increasing fiscal revenue.
