The Department of Inland Revenue (DIR) has announced an increase in casino entrance fees and gaming taxes related to betting, effective 1 January 2026.
According to a notification issued on 31 December 2025, the casino entrance tax has been raised from US$50 to US$100 per person. This tax applies to anyone entering a casino or related gaming establishment in Sri Lanka and can be paid in US dollars, other convertible foreign currencies, or Sri Lankan rupees for local citizens.
Additionally, the gross collection tax on betting and gaming businesses has been increased from 15% to 18%. The revised tax applies to gross collections exceeding Rs. 1 million per month.
The changes were introduced through amendments to the Betting and Gaming Tax Act No. 40 of 1988, under the Betting and Gaming Tax (Amendment) Act No. 25 of 2025.
The DIR stated that from the effective date, casino operators and betting businesses must comply with the new tax structure. The Commissioner General of Inland Revenue also noted that further clarifications can be obtained through the Department’s Tax Administration and Betting and Gaming Tax Divisions.
