In a bid to streamline the casino industry, Sri Lanka has introduced amendments to its casino licensing regulations, imposing minimum investment thresholds and revising fee structures.
The move, effective from January 1, 2024, marks a shift in the country’s approach to integrated development projects, and follows the submission of ten casino applications. Sri Lanka currently has six operational casinos: Bally’s, Bellagio, Casino Marina, Stardust, Continental Club, and The Ritz Club.
The revised Casino Business Licensing Regulation No. 01 of 2022, issued by President Ranil Wickremesinghe in his capacity as the Minister of Finance, aims to increase accountability and sustainability in the licensing process. These changes come amidst growing concerns over the social and economic impacts of the gaming industry and its potential to exacerbate issues related to gambling addiction and over-indebtedness.
Under the new regulations, applicants seeking casino licenses for integrated developments must meet minimum investment requirements set by the government. Projects with a minimum investment of $250 million are subject to a casino license fee and a corresponding renewal fee of $31 million.
Similarly, integrated developments with investments exceeding $500 million are required to pay a casino license fee of $15.5 million and a renewal fee of $31 million.
The revised regulations also address the concerns of existing casino operators, who obtained licenses before January 1, 2023. These operators will pay a license fee of Rs. 2 billion, with Rs. 500 million allocated for the first five years and Rs. 1.5 billion for the subsequent 15 years. The renewal fee remains unchanged at Rs. 10 billion.
Sri Lanka’s Cabinet of Ministers last year gave its approval for the establishment of a Gambling Regulatory Authority, which will be responsible for supervising the country’s gambling industry and ensuring the proper collection of tax revenues. The proposal, previously put forth by Wickremesinghe, was approved in June.
However, the Sri Lanka Parliament’s Committee on Public Finance (COPF) has recently expressed concern over the failure to meet the commitment to establish the gaming regulator by December 31, 2023. The COPF has summoned the director general of fiscal policy to provide information regarding both physical and online casinos, including tax revenues generated.