New Gaming Levy Law Reshapes Sri Lanka’s Tax Framework

Sri Lanka’s Parliament has completed the final constitutional step to bring amendments to the Betting and Gaming Levy into force, marking a significant fiscal development for the country’s regulated gambling sector. The Betting and Gaming Levy (Amendment) Act, No. 25 of 2025, was certified by Speaker Dr Jagath Wickramaratne on 17 December, following parliamentary approval earlier in the month.

The amended legislation revises Section 2 of the principal Betting and Gaming Levy Act and introduces higher tax obligations for betting and gaming operators. Under the new framework, the existing gross collection levy is confined to the period between 1 April 2023 and 1 October 2025. From 1 October 2025 onward, the levy on those engaged in bookmaking or gambling businesses will increase to 18 percent.

In addition to operator-focused changes, the amendment raises the casino entrance levy applicable to Sri Lankan citizens to USD 100, doubling the previous fee. Lawmakers have framed this adjustment as part of a broader effort to enhance state revenue from entertainment and leisure activities.

The Bill was passed by Parliament on 5 December and subsequently examined by the Committee on Public Finance, which approved the measures in November. Officials told the Committee that the levy increases align with the government’s fiscal strategy for 2025.

While the amendment focuses primarily on taxation, it has also renewed discussion around gambling oversight in Sri Lanka. Members of Parliament have highlighted the contrast between tighter controls on physical casinos and the rapid growth of largely unregulated online gambling activity.

With certification now complete, the revised levy structure is legally in force, increasing the financial burden on betting and gaming operators and reshaping the fiscal landscape of Sri Lanka’s gambling industry.