Financial Times

Betting
Undue advantages to casinos operators
Some corporate sector leaders said there are certain undue advantages to casino operators. While the general industry pays taxes for profits generated from operations and also personal taxes, casinos pay only a lump sum of Rs 50 million, up from Rs 12 million earlier.

Mineka Wickremasinghe, Chairman, Ceylon Biscuits Ltd, on his views on the Betting and Gaming Levy: "Most countries tax casinos on the income generation. Casinos have erupted in North America to develop and alleviate poverty in certain States. Casinos can generate enormous revenue that could be channelled for economic development.

In America and Canada, American Indians are permitted to build casinos in some of their settlements for economic development of those territories and upliftment of their people. Sri Lanka is perhaps the only country in the world that permits covert casino operations and allows the operators the benefits of huge profits due to the lack of revenue controls.

They are free of corporate tax, VAT and charged only a small betting tax not commensurate with the income generation. Casinos can be justified only if betting is legalised and reputed banks control the intake.

Casinos should be located in clusters in specially designated areas like an Island in Bolgoda and in the proposed boardwalk area of the Galle harbour. The cluster should gradually develop into a fun extravaganza with abundance of water sports, restaurants, plush hotels etc."

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