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(AsiaGameHub) – At Sri Lanka’s 2026 Global Game Connect (GGC) conference, officials reaffirmed their dedication to a lawful, equitable, and sustainable gaming industry.
The event was held earlier this month at City of Dreams Sri Lanka, South Asia’s first integrated resort. The $1.2 billion IR, featuring a casino managed by Melco Resorts & Entertainment, launched in 2025 and stands as the largest private investment in Sri Lanka to date.
Deputy Minister of Industries and Entrepreneurship Development Chathuranga Abeysinghe informed conference attendees, “Technology combined with creativity will propel this industry. … From a governmental standpoint, we will provide our complete backing to advance this industry both domestically and across the region”.
Sri Lanka leverages its strategic location—four hours by air from Southeast Asia and two hours from India. “We possess substantial potential for [gaming], especially regarding expanding neighboring markets such as India,” stated Deputy Transport Minister Susil Ranasinghe at GGC.
Stricter regulation a prerequisite for operators
Stringent regulation is essential to attract operators like Melco, a global entity headquartered in Macau. The 2025 Sri Lanka Gambling Regulatory Act mandates “transparency and good governance” to build “public trust in the gambling industry’s integrity”.
It prohibits “irresponsible products and practices” and mandates programs “to reduce social harm linked to gambling”. Additionally, it incorporates measures to combat financial crimes such as money laundering and to prevent individuals under 18 from gambling.
This legislation covers both land-based and online gaming. Officials note that 60% to 70% of gamblers currently use illegal offshore services. Penalties for unlicensed iGaming operators include fines of up to Rs. 10 million ($107,000) or imprisonment for up to two years.
The independent Gambling Regulatory Authority, established in 2025, was created to enforce the act. It is scheduled to be fully operational by the end of June.
Sri Lanka links gaming, tourism
As Sri Lanka continues its recovery from the 2022 economic crisis, officials are establishing a direct connection between gaming and tourism. They aim for up to 3 million visitor arrivals this year, exceeding the 2025 record of 2.3 million. Their strategy involves branding the island as a destination for high-end tourists, including gamblers. The $4.5 billion tourism revenue target is based on an average daily per-person expenditure of $160, an increase from $140 in 2025.
With a rise in the gaming levy from 15% to 18% and increased casino entry fees for locals, gaming revenue is projected to generate an extra $250 million annually. However, for physical casinos, most revenue is likely to come from foreign visitors. One estimate indicates that the local entry levy, which doubled last year from $50 to $100, equals 40%~60% of a Colombo office worker’s starting monthly salary.
Thus, Sri Lanka is broadening its reach. According to Tourism Development Authority Chairman Buddhika Hewawasam, the country identifies Saudi Arabia, the broader Middle East, and the United States as potential source markets.
On the sidelines of GGC, a representative from iGaming platform provider Diamante Tech noted that stricter gaming regulation in Sri Lanka has increased its attractiveness to global manufacturers and suppliers. “There’s a feeling that people are now taking notice of the Sri Lankan market. It’s a very positive step… and a good opportunity. It’s only going to expand.”
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