Sri Lanka lifts its long-standing ban on casino gaming equipment imports, opening doors for billion-dollar foreign investments and high-stakes luxury resorts. New gambling regulations, tighter licensing rules, and expanded tourism initiatives mark a major policy shift.
Sri Lanka Lifts Ban on Casino Equipment as New Billion-Dollar Projects Reshape Gaming Industry
In a significant policy shift, the Sri Lankan government has lifted the long-standing ban on the importation of casino gaming equipment, signaling a new era for the country’s gambling and tourism sectors.
The decision was made to support licensed and registered tourism promotion facilities and institutions currently operating in the casino and hospitality space. Previously, the import of such equipment was banned under the Casino Business Regulation Act No. 17 of 2010 due to economic constraints and the lack of comprehensive regulation.
The island nation’s casino operations have long been governed under the Betting and Gaming Levy Act No. 40 of 1988. Although the Casino Business (Regulation) Act No. 17 of 2010 aimed to streamline licensing and oversight, the supporting regulations remained underdeveloped for years. As a result, despite legislation requiring formal licensing, casino operators often functioned in legal ambiguity.
In a bid to bring order and international credibility to the industry, the government introduced the “Gambling Regulatory Authority Act, No. of 2025.” The new bill sets out to create an overarching Gambling Regulatory Authority, tasked with overseeing both physical and online gambling activities across Sri Lanka.
The Act aims to implement robust regulatory frameworks that include issuing fresh licenses, establishing clear compliance standards, introducing Anti-Money Laundering (AML) and Know Your Customer (KYC) mandates, and encouraging responsible gaming while cracking down on unlawful practices.
Among the dominant players in Sri Lanka’s casino landscape is veteran businessman Dhammika Perera, who holds a majority of the country’s casino licenses. His portfolio includes flagship properties like Bally’s Colombo, Bellagio Colombo, and MGM Colombo.
Another heavyweight in the industry is Ravi Wijeratne, the owner of Stardust Casino, one of the most iconic gambling establishments in Colombo.
Other long-standing names such as the Ritz Club and Salaka Club continue to operate, albeit under scrutiny from regulatory bodies aiming to upgrade standards and compliance.
The reopening of the market has also attracted high-level foreign investment, cementing Sri Lanka’s ambitions of becoming a regional gaming hub.
Among the most prominent projects is the City of Dreams Sri Lanka, a joint venture between John Keells Holdings (JKH) and global casino powerhouse Melco Resorts & Entertainment Ltd from Macau. With a projected cost of over $1 billion, the project will feature a luxury resort complex in Colombo, set to include a state-of-the-art casino and the Nua Hotel, both operated by Melco. The grand opening is scheduled for August 2025, and Melco has already injected $125 million into the venture.
Another major development is the Majestic Pride Casino, a partnership between Golden Island Hospitality (Pvt) Ltd and India’s Majestic Group Hotels & Casinos. Located at the prestigious Lotus Tower, this high-end casino received its official gaming license on August 1, 2024, and is expected to be a key attraction for tourists and high-net-worth individuals from the region.
To regulate the rapidly growing industry, the new bill outlines stringent licensing requirements for both new entrants and existing operators. As per a 2024 gazette notification, new casino operators must make a minimum investment of $250 million to qualify for a license. In addition, they must pay a license fee of Rs. 10 billion, with recurring annual renewal fees. Operators who invest $500 million or more are granted a reduced license fee of Rs. 5 billion, although they will still be subject to an annual renewal fee of Rs. 10 billion.
For already-operational casinos, the government has introduced revised compliance and fee structures. These include a five-year renewable fee of Rs. 500 million and a 15% tax on revenue.
To curb local addiction and discourage unregulated gambling, the government is also planning a steep hike in local entry fees. The current $50 entry fee for locals is set to rise to $200 over the next three years, reinforcing the country’s positioning of casinos primarily as tourism-driven entertainment venues.
With Sri Lanka aligning itself closer to international standards in gambling regulation and opening its market to high-stakes foreign investment, the once-embattled casino industry is on the verge of a high-rolling transformation.
