Asia: Sri Lanka steps up as India’s Macau

The gambling market in Sri Lanka has witnessed substantial transformation and growth in recent years. In 2020, the market was valued at USD 293.93 million and is projected to escalate to USD 410.04 million by 2026, registering a CAGR of 5.24 percent during the forecast period. This growth can be attributed to a combination of factors. These include a surge in tourism, facilitated by political stability and enhanced infrastructure, a rise in disposable income among the local population, and a heightened awareness of the online gaming and betting services available.

Regulatory changes

In June 2023, the Sri Lankan government took a significant step towards regulating the gambling industry by establishing a gaming regulatory authority. This newly established authority is responsible for overseeing tax collection, combating criminal activities, and alleviating the adverse societal effects stemming from gaming. It is also anticipated that the legislation will incorporate an admission fee for casinos. Sri Lanka’s regulatory body aims to ensure that casino operators pay their fair share of taxes. It is projected that approximately $7.4 million in casino taxes remain unpaid due to insufficient regulatory supervision. The recent initiative to standardize gaming is expected to offer licences valid for up to 20 years. Additionally, a renewable five-year licence would carry a cost of $1.36 million.

Land-based, crypto and online casinos

Despite the regulatory changes, there are several land-based casinos operating in Sri Lanka. These include the Bellagio Colombo, known for its range of games, events, and promotions, and the Ballys Casino Colombo, which is Sri Lanka’s largest and most luxurious casino. Another casino of distinction is the Casino Marina Colombo. It provides packages with all-inclusive amenities including private gaming rooms, limousine services, five-star dining, and complimentary beverages. In addition to land-based casinos, there are also crypto casinos and online casinos that cater to the Sri Lankan market. For instance, Stake.com is a Bitcoin casino that has gained popularity among gamblers in Sri Lanka. Furthermore, there are several online casinos that are popular among Sri Lankan players, including 888casino, 22Bet, and Spin Casino. The future of Sri Lanka’s gambling market looks promising. Numerous international companies are entering into strategic partnerships with local operators to provide sports betting services, which will further aid market growth during the forecast period. However, stricter regulations on gambling activities in Sri Lanka could pose a challenge for players within this space.

Sri Lanka as a future gambling mecca in Asia

Given the rapid growth and development of the gambling market in Sri Lanka, it is plausible to envision the country becoming a future gambling mecca in Asia. The combination of regulatory changes, increasing foreign investment, and the strategic location of Sri Lanka in the Indian Ocean makes it an attractive destination for both local and international gamblers. However, it is essential for the government and the industry to work together to ensure that the growth of the gambling market is balanced with the need to mitigate its potential negative impacts. This includes implementing responsible gambling measures, providing support for problem gamblers, and ensuring that the industry contributes positively to the country’s economy. The evolution and future of Sri Lanka’s gambling market are characterized by significant growth, regulatory changes, and increasing foreign investment. As the government continues to explore ways to regulate and tap into this lucrative market, the future of gambling in Sri Lanka looks promising.