Sri Lanka's 2025 gambling laws target growth and safety

Key Takeaways

Sri Lanka is actively cultivating a regulated gaming environment to attract global operators and boost tourism, leveraging its strategic location.
New legislation, including the 2025 Sri Lanka Gambling Regulatory Act, aims to enhance transparency, combat financial crime, and minimize social harm across both land-based and online gaming.
The nation anticipates substantial economic benefits, projecting an additional $250 million annually from gaming revenue and a significant increase in high-end tourist arrivals.

Sri Lanka tightens gambling laws to boost tourism and investment in 2025

The 2026 GGC conference, held at the City of Dreams Sri Lanka, underscored the nation's ambitions. This $1.2 billion integrated resort, which opened in 2025 with a casino managed by Melco Resorts & Entertainment, represents the largest private investment in the country to date and stands as South Asia's first integrated resort.

Government Vision for Gaming Growth

Deputy Minister of Industries and Entrepreneurship Development, Chathuranga Abeysinghe, addressed conference attendees, emphasizing the role of innovation. "Technology plus creativity will drive this industry," Abeysinghe stated, adding that the government pledges its "fullest support to drive this industry both here and in the region."

Sri Lanka's geographical advantage, being just four hours by air from Southeast Asia and two hours from India, positions it favorably for market expansion. Deputy Transport Minister Susil Ranasinghe highlighted this at GGC, noting the "significant potential for [gaming], particularly for growing markets next to us, like India."

Stricter Regulation: A Prerequisite for Operators

Rigorous regulation is considered essential to attract established operators such as Macau-based Melco, a global name in casino management. The 2025 Sri Lanka Gambling Regulatory Act is designed to foster "transparency and good governance" to build "public confidence in the integrity of the gambling industry."

The legislation specifically prohibits "irresponsible products and practices" and mandates programs "to minimize social harm associated with gambling." It also incorporates measures to counter financial crimes like money laundering and prevent individuals under 18 from participating in gambling activities.

This comprehensive act applies to both land-based casinos and online gaming. Officials estimate that 60% to 70% of local players currently patronize illegal offshore providers. To address this, the act imposes severe penalties for unlicensed operators, including fines up to Rs. 10 million ($107,000) or two years of imprisonment. The independent Gambling Regulatory Authority, also established in 2025, is tasked with enforcing this act and is expected to be fully operational by the end of June.

Gaming as a Catalyst for Tourism

In its ongoing recovery from the 2022 economic crisis, Sri Lanka is strategically linking gaming with its tourism sector. The country aims to welcome up to 3 million visitor arrivals this year, surpassing the 2025 record of 2.3 million. This strategy includes positioning the island as a destination for high-end tourists, including those interested in casino gaming. The target for tourism revenue is set at $4.5 billion, based on an average daily expenditure per person of $160, an increase from $140 in 2025.

Gaming revenue is projected to generate an additional $250 million annually, driven by an increase in the gaming levy from 15% to 18% and higher casino entry fees for local residents. However, the majority of revenue from brick-and-mortar casinos is anticipated to come from international visitors. The local entry levy, which doubled last year from $50 to $100, is equivalent to 40% to 60% of a starting monthly salary for an office worker in Colombo.

Tourism Development Authority Chairman Buddhika Hewawasam indicated that Sri Lanka is broadening its outreach, identifying Saudi Arabia, the wider Middle East, and the United States as potential feeder markets for tourism and gaming.

On the sidelines of GGC, a representative from a platform provider observed that Sri Lanka's stricter gaming regulation has enhanced its appeal for global manufacturers and suppliers. "There is a sense that people are now looking at the Sri Lankan market," the representative noted. "It is a really good move... and a good opportunity. It is only going to grow."