Crypto Casino
Torrent Gear
Gambling and online casinos in Sri Lanka
Sri Lanka is one of the few South Asian states where casinos are legal and officially licensed by the government.
The island has become an important centre for gambling tourism, especially for visitors from India, China and Singapore.
Nevertheless, online gambling remains outside the legal field, and its regulation is still limited to technical locks.
Legislative framework
Gambling is governed by the following laws:1. The Betting and Gaming Levy Act (1988, amended 2010 and 2019) - sets taxes and licensing fees for casinos and bookmakers.
2. The Gaming Act (2010) - determines the procedure for issuing licenses and state control.
3. The Finance Act (2019) - strengthens fiscal oversight and introduces a casino turnover tax.
Main provisions:- casinos are only allowed under a Treasury Department license;
- licenses are issued exclusively to legal entities registered in Sri Lanka;
- citizens can play, but most casinos are geared toward foreigners;
- online gambling is unregulated and officially illegal.
Casino industry
Casinos in Sri Lanka have been operating for more than 40 years and are part of the country's tourism brand.
All licensed establishments are located in the capital Colombo, where the flow of tourists and business guests is concentrated.
The largest casinos in Sri Lanka:- Bally's Colombo Casino is the oldest and largest casino in the country, opened in 1995.
- Bellagio Colombo is an elite casino with board games and poker.
- Casino Marina Colombo is a multi-level entertainment complex.
- Stardust Casino - aimed at players from India and Bangladesh.
These casinos operate under the oversight of the Department of Inland Revenue, which controls financial flows and tax payments.
Taxation
Gambling in Sri Lanka brings substantial revenue to the budget.
Additionally, casinos are required to pay a monthly fee of LKR 10 million to the government.
According to the Ministry of Finance, the gambling sector annually brings the country about $40-50 million in tax revenues.
Online gambling
At the moment, Sri Lanka does not have a separate law on online gambling, and there is no concept of "internet casino" in existing regulations.
In fact, online gambling is prohibited, but the state does not have an effective control system.
Local players actively use foreign platforms - 1xBet, Betway, Stake, Parimatch, Mostbet, paying for deposits through e-wallets and cryptocurrency.
In 2023, the Telecommunication Regulatory Commission of Sri Lanka (TRCSL) blocked more than 1,200 offshore casino domains, but most of them continued to work through mirrors.
Tourism and economy
Sri Lanka's casino industry is closely related to tourism and hospitality.
The main flow of players is citizens of India, where gambling is prohibited in most states.
Economic impact of the industry:- creating more than 7,000 jobs in services and security;
- increased hotel and air traffic;
- currency receipts from foreign players;
- infrastructure development in Colombo.
In 2019, the authorities considered the Colombo Casino City project, an integrated resort modeled on Macau and Singapore, but it was postponed due to the political crisis.
Social aspect
Public attitudes towards gambling are mixed.
Buddhism, which is the dominant religion, does not approve of gambling, considering it a form of dependence and a distraction from the spiritual path.
However, the government takes a pragmatic approach:Responsible game programs have been introduced for citizens, including limits on visiting casinos and requirements for personal identification.
Online betting and crypto games
After 2020, a new phenomenon appeared in the country - bets through Telegram and WhatsApp groups, as well as cryptocasinos that accept deposits in USDT and Bitcoin.
Although the Central Bank of Sri Lanka officially banned the use of cryptocurrencies in 2022, the ban is not actually controlled.
Many citizens use international wallets (Skrill, Neteller, Binance P2P) to bypass bank locks.
Control and regulation
The following are responsible for the licensed activities of the casino:- Ministry of Finance - issues licenses and collects taxes;
- Department of Inland Revenue - tracks revenues;
- TRCSL - blocks illegal sites;
- Sri Lanka Police CID - Investigates online fraud.
- establish licensing for foreign operators;
- introduce a 20% tax on profits from online games;
- create a Responsible Gaming system;
- provide technical control through local servers.
Development prospects
Sri Lankan authorities see potential in the gambling business to attract investment and tourism, especially after the economic crisis of 2022.
It is expected that in the coming years:1. The casino industry will be integrated with Colombo's tourism brand.
2. A law will be passed on the regulation of online gambling.
3. Licenses will be introduced for foreign online operators with an emphasis on Responsible Gaming.
According to Asia Gaming Brief experts, Sri Lanka could become the "new Macau of South Asia" if it ensures transparent policies and the fight against illegal sites.
Sri Lanka is a country where gambling is legal offline, but online casinos remain illegal.
There is a unique balance between Buddhist traditions and economic pragmatism: casinos work, but with tight fiscal control.
Online gambling is formally prohibited, but it is actively developing in the shadows - through VPNs, cryptocurrencies and international sites.
The country is betting on foreigners, turning the game into a source of currency, but not a temptation for its citizens.
