Online casinos attract hundreds of Sri Lankan youths
Sri Lanka is losing significant tax revenue due to the rapid growth of the online casino market, as many youths access various internationally regulated betting sites, according to sources from the Ministry of Finance.
At least 10 internationally licensed gambling platforms, including rupee-based online casinos, attract both local and foreign visitors.
The legal framework in Sri Lanka allows for land-based casinos, and now the Ministry of Finance is considering legalising online casinos and establishing a special regulator, following the directives of the Committee on Public Finance (CoPF), chaired by SJB MP Dr. Harsha de Silva.
Dr. de Silva stated at a recent CoPF meeting that the current laws are ineffective, as offshore operators continue to operate, resulting in lost tax revenue.
During a recent parliamentary session discussing online casinos, representatives from the Ministry of Finance and the Central Bank supported the idea of creating a special regulator.
They believe this would address many existing issues in the gambling sector. To streamline the casino industry, Sri Lanka has introduced amendments to its casino licensing regulations, which include minimum investment thresholds and revised fee structures.
These changes, effective January 1, 2024, signal a shift in the country’s approach to integrated development projects and follow the submission of 10 casino applications.
The new regulations address concerns about the social and economic impacts of the gaming industry, such as gambling addiction and over-indebtedness.
Under the revised rules, applicants for casino licences for integrated developments must meet minimum investment requirements set by the government.
Projects with a minimum investment of $250 million must pay a casino licence fee and a renewal fee of $31 million. Developments with investments over $500 million are required to pay a casino licence fee of $15.5 million and a renewal fee of $31 million.
Last year, Sri Lanka’s Cabinet of Ministers approved the establishment of a Gambling Regulatory Authority to supervise the country’s gambling industry and ensure proper tax collection.
However, CoPF has expressed concern over the delay in establishing this regulator recently. The director-general of fiscal policy has been summoned to provide information regarding both physical and online casinos, including tax revenues generated.
It was revealed that although the law prohibits online casinos, they operate openly, depriving the country of due revenue.
Players of foreign online gambling sites face no penalties in Sri Lanka, and the government does not restrict access to such platforms. Additionally, no online gambling websites offer games in Sri Lanka’s official languages, Sinhala and Tamil.
In a recent development, India’s Goa Chief Minister Pramod Sawant assured his legislature on July 30, 2024, that hoardings of Sri Lankan casinos promoting online gaming would be removed in the coastal state, as reported by Indian media.
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