Sri Lanka Parliament approves Betting and Gaming Levy amendment
Sri Lanka has formally enacted changes to its betting and gaming tax regime following the certification of the Betting and Gaming Levy (Amendment) Bill by Speaker of Parliament Dr Jagath Wickramaratne.
Announcing the development in Parliament on Wednesday, 18 December, the Speaker confirmed that he endorsed the certificate on the Bill a day earlier, on 17 December, completing the final constitutional step required for the legislation to come into force.
The Betting and Gaming Levy (Amendment) Bill was among three Bills certified on the same day, alongside amendments to the Social Security Contribution Levy and the Strategic Development Projects framework. With certification now completed, the gaming-related amendments will take effect as the Betting and Gaming Levy (Amendment) Act, No. 25 of 2025.
Scope and purpose of the amendment
The Betting and Gaming Levy (Amendment) Bill, which was passed by Parliament on 5 December 2025, amends Section 2 of the principal enactment governing betting and gaming taxation in Sri Lanka.
According to the parliamentary statement, the amendments introduce three key changes. First, the amendments confine the existing ten percent gross collection levy to a specific past period, running from 1 April 2023 to 1 October 2025. From 1 October 2025 onward, the gross collection levy on those engaged in bookmaking or gambling businesses will rise to eighteen percent. Third, the Bill raises the casino entrance levy applicable to Sri Lankan citizens to United States Dollars one hundred.
These measures represent a significant revision of the tax burden placed on betting and gaming operators and casino patrons, particularly local players, as part of wider fiscal reforms approved for 2025.
Parliamentary approval and certification process
The Bill was presented to Parliament earlier in the legislative process and was passed on 5 December. Certification by the Speaker on 17 December completed the constitutional procedure required for the legislation to come into force.
Addressing the House, Speaker Dr Jagath Wickramaratne confirmed that he had endorsed the certificate on the Betting and Gaming Levy (Amendment) Bill, along with two other fiscal measures. This endorsement brings the revised levy provisions into force under Sri Lankan law.
Committee scrutiny and fiscal alignment
Prior to its passage in Parliament, the Betting and Gaming Levy (Amendment) Bill was examined by Sri Lanka’s Committee on Public Finance. The Committee approved the Bill during its meeting held in Parliament on 17 November, chaired by Member of Parliament Dr Harsha de Silva.
During that meeting, officials explained the intent behind the proposed changes to the Betting and Gaming Levy Act No. 40 of 1988. The Committee reviewed the amendments in detail and granted approval for the increase in levies affecting bookmakers, gaming operators and casino patrons.
The Committee noted that the modifications increase the gross collection levy on bookmakers and gaming operators from 15 percent to 18 percent, while doubling the casino admission fee for Sri Lankan citizens from $50 to $100. Members were reminded that these measures are consistent with the government’s fiscal strategy for 2025, which wants to increase revenue from the casino and entertainment sectors.
Broader regulatory context
Following the Committee deliberations, Dr de Silva made public comments on the broader regulatory environment governing gambling in Sri Lanka. In a LinkedIn post, he stated: “The recent CoPF meeting laid bare the stark reality of Sri Lanka’s gambling regulation vacuum – especially in the online space. “While we debate small tax tweaks on physical casinos, a far larger, completely unregulated digital industry is growing unchecked.”
He further added, “This is not about moral judgment on responsible adult recreation. It is about responsible governance. We still have time to get this right – but not much.”
While these comments did not relate directly to the levy amendment itself, they formed part of the broader policy discussion surrounding taxation, oversight and reform within the gambling sector.
Other Bills certified
Alongside the Betting and Gaming Levy (Amendment) Bill, the Speaker also certified amendments to the Social Security Contribution Levy and the Strategic Development Projects framework. All three Bills were passed by Parliament on 5 December and have now come into force as Acts of Parliament.
With certification complete, the Betting and Gaming Levy (Amendment) Act, No. 25 of 2025, formally establishes higher levies on betting, gambling and casino activity in Sri Lanka, marking a key fiscal development for the country’s regulated gaming sector.
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