The Inland Revenue Department (IRD) of Sri Lanka has officially announced that from New Year's Day 2026, the tax standards for the country's casinos and gambling industry will undergo significant adjustments. This change is based on the Gambling Tax Amendment Act No. 25 of 2025, aimed at revising the existing tax laws, not only to replenish the national treasury but also seen as an important step in promoting a more standardized and transparent operation of the industry.
New Policy Overview: Both Fees and Tax Rates Increase
According to the new regulations, the individual entry fee (CEL) for entering any casino or gambling venue in Sri Lanka will experience a "wallet shock," jumping from $50 per person directly to $100, achieving a doubling. The payment method is quite flexible; it can be made in US dollars or other circulating foreign currencies, while Sri Lankan citizens can pay in equivalent rupees. At the same time, for gambling operators, the wallet will have to "slim down"—companies with a monthly total income exceeding 1 million rupees will see their total income tax rate increase from 15% to 18%.
Industry Impact: Higher Thresholds and Standardization Go Hand in Hand
This adjustment of fees and taxes will undoubtedly directly affect the consumption decisions of tourists and local players, the higher entry threshold may filter out some casual visitors. For operators, a 3 percentage point increase in the tax rate means a direct increase in operating costs, which may prompt a new round of market reshuffling. The tax office explicitly requires all relevant businesses to strictly implement the new regulations from January 1, 2026, and advises everyone to proactively consult the tax administration department or the gambling tax department if there are detailed questions. For more information on global gambling tax and compliance dynamics, follow the updates on the PASA official website.
Corporate Response: Strict Implementation and Compliance Consultation
Facing the upcoming new policy, the most prudent response strategy for related companies is to prepare in advance, ensuring that financial and operational systems can seamlessly interface with the new tax calculation method. The consultation window left by the tax office is a good opportunity, and proactive communication can avoid subsequent compliance risks. In the long run, although this combination of measures may compress profit margins in the short term, promoting the industry towards a more transparent and standardized direction is not necessarily a bad thing for the market's long-term health and attracting compliant investments.
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This article is from "PASA-Global iGaming Leaders" gambling industry news channel:https://t.me/pasa_news
Original in-depth gambling channel:https://t.me/gamblingdeep
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PASA official website: https://www.pasa.news
