🇱🇰For operators · Tax, marketing & compliance
Operating in Sri Lanka: 18% tax, ad Ban
Sri Lanka is implementing a new unified framework under the Gambling Regulatory Authority (GRA), which became operational in December 2025. The new regime licenses both land-based and online gambling and increased operator taxes to 18% from 2026.
OverviewOverview built from public sources. An in-depth review of Sri Lanka is available on request. Request it
Product by product
| Product | Status |
|---|---|
| Online betting · Online casino · Online poker · Lottery | Licensed |
Regulator and player protection in Sri Lanka
Regulator
Gambling Regulatory Authority (GRA)
Application authority and enforcement body
Self-exclusion scheme
Operator-led self-exclusion required by gambling-software licensees
How players exclude themselves; what it covers is in the player guide
Mandatory RG controls
No limit imposed on players
Deposit limits or reality checks the law requires operators to offer
Advertising stance
Banned or near-banned
Whether you can run TV / sponsorship / paid-social campaigns
Heads-up for operators
2 items · last change 8 Oct 2026
The Gambling Regulatory Authority missed its 30 June 2026 target for the first secondary regulations under the Gambling Regulatory Authority Act, No. 17 of 2025, and gave no revised date. As of July 2026 the draft was with an expert committee, after which it goes to the Attorney General's Department, the Cabinet, the gazette and Parliament; the Authority had aimed to be fully operational by 30 November 2026 (national and trade press).
GRA to Become Fully Operational
The GRA missed its 30 June 2026 target for its first secondary regulations and gave no revised date; it had aimed to be fully operational by 30 November 2026.
Source: 1
Not yet in force: drafts, laws adopted without a start date, and sections of the law still to be commenced. An item moves to the timeline below on the day it takes effect.
Licence Types in Sri Lanka
4 licence types are listed for Sri Lanka; each says who issues it and what it covers.
| Licence | Regulator | Term | Notes |
|---|---|---|---|
| Gambling License (Land-Based) | Gambling Regulatory Authority (GRA) | Varies (e.g., 20 years for City of Dreams) | Covers physical casino and betting operations. Applicants must be a company registered under the Companies Act. |
| Digital Gambling License | Gambling Regulatory Authority (GRA) | To be specified in regulations | A specific license is required for all online/interactive/mobile gambling. |
| Gambling Software License | Gambling Regulatory Authority (GRA) | To be specified in regulations | Required for any entity that develops, distributes, or operates gambling software. |
| Lottery Operation | National Lotteries Board / Development Lotteries Board | Statutory | State-monopoly. The GRA Act does not apply to lotteries run by these two state entities. |
Licensing model
Sri Lanka has moved to a mandatory local licensing model under the Gambling Regulatory Authority Act of 2025. The framework repeals previous fragmented laws and requires all operators, including online, to obtain a specific 'Digital Gambling License' from the Gambling Regulatory Authority (GRA). It replaces an unregulated grey market for online gambling with a formal, licensed-only system.
Gambling tax: 18% of GGR
Detail
Licensed operators pay an 18% tax on Gross Gaming Revenue (GGR) for any month where gross collection exceeds LKR 1 million. A casino entry levy of US$100 is also payable by Sri Lankan citizens.
Year-1 cost: fee schedule not yet published
Sri Lanka's new framework imposes substantial licensing fees, particularly for large-scale integrated resorts, which signals a preference for well-capitalized operators. The GRA has not yet published an official fee schedule for online licenses.
| Line item | Amount | Notes |
|---|---|---|
| Land-Based Casino Licence (New Integrated Resort >$500M) | LKR 5 Billion (~$15.5M) Source2 | One-time license fee for new large-scale projects. Drawn from third-party industry sources rather than the regulator's own publications: verify the current figure directly with the licensing authority before relying on it. |
| Land-Based Casino Licence (Existing Operator) | LKR 500 Million (~$1.55M) Source2 | Payable for the first 5 years of a 20-year license. Drawn from third-party industry sources rather than the regulator's own publications: verify the current figure directly with the licensing authority before relying on it. |
| Online Casino / Sports Betting Licence | No published fee schedule | Fees for the new 'Digital Gambling License' are yet to be announced by the GRA. |
| Lottery Licence | State monopoly | No commercial license available. |
| Operator GGR Tax | 18% of Gross Collections Source3 | Applies to monthly gross collections over LKR 1 million. |
| Local Compliance + Counsel | Variable | Annual cost for legal retainer, local directorships, and compliance staff. |
Year 1 estimate
Year 1 cannot be totalled: online license fees not published
For a new large-scale land-based casino, initial government fees would be in the range of $15.5M–$31M, before GGR tax and other operational costs.
Which foreign licences Sri Lanka accepts
Sri Lanka recognises none of these 8 foreign licences.
BannedMalta (MGA) · United Kingdom (UKGC) · Gibraltar (GRA) · Isle of Man (GSC) · Curaçao · Kahnawake (KGC) · Anjouan (AGB) · Alderney (AGCC)
Operators must hold a license from the Sri Lankan Gambling Regulatory Authority (GRA) to legally offer services.
Bonus rules: welcome bonuses allowed
Inducement ads: Allowed
The regulatory framework for iGaming bonuses and advertising is at an early stage and rests on the principles of the new Gambling Regulatory Authority Act. Detailed operational regulations are expected as the Gambling Regulatory Authority (GRA) becomes fully functional. For now the rules are broad rather than granular.
What the player can claim
- Welcome bonus
- Allowed
- VIP schemes
- Allowed
- Loyalty schemes
- Allowed
- Cashback
- Allowed
Welcome bonuses and retention tools are currently permitted as there are no specific prohibitions, but future regulations from the GRA may introduce conditions based on responsible gambling principles.
What the operator can advertise
- Messages ads may not give
- false, deceptive, or misleading
- imply gambling solves financial problems
- imply gambling improves social status
- Penalties
A fine not exceeding LKR 100,000 or imprisonment for up to two years, or both.
While not explicitly banned, inducement advertising is subject to conditions under the Gambling Regulatory Authority Act. Public concerns about television and billboard ads may lead to future channel restrictions.
Advertising: banned or near-banned
Sri Lanka restricts gambling advertising heavily. Under the new Gambling Regulatory Authority Act, No. 17 of 2025 (certified 3 Sept 2025, GRA operational from 1 Dec 2025), advertising any gambling carried on in contravention of the Act is a criminal offence (s.44), misleading gambling advertisements are prohibited (s.54), and the GRA is empowered to impose 'restrictions on advertising gambling' by regulation. There is no material sportsbook-vs-casino distinction: betting, gaming and casino advertising all fall under the same GRA regime, and Sri Lanka does not appear on any major ad platform's certified-gambling allowlist, so paid gambling promotion is effectively off-limits in practice.
| Channel | Status | Vertical & Platform Split (2026) |
|---|---|---|
| Google Search Ads | Banned | Google only serves gambling and games ads in a fixed list of certified countries, and Sri Lanka does not appear in Google's country-specific gambling requirements. With no local certification path available, gambling/betting search ads targeting Sri Lanka cannot be run. This matches the domestic ban on advertising unlicensed gambling under the GRA Act, No. 17 of 2025 s.44.67 |
| App Store Publishing | Banned | Sri Lanka is not among the countries/regions where Google Play permits real-money gambling apps, so real-money gambling apps cannot be published to Sri Lankan users. Apple's Review Guideline 5.3 likewise requires apps to hold the necessary licensing and permissions in the territories served, which Sri Lanka's framework does not grant for public real-money gambling. Publishing real-money betting/casino apps into the Sri Lankan store is therefore not available.89 |
| Google/Apple App Store Ads | Banned | App-install and store ads for gambling apps ride on the same certification regime as other Google gambling ads, which excludes Sri Lanka. With no Sri Lankan gambling ad certification available from Google and no local licence framework recognized by the platforms, gambling app-promotion ads cannot target Sri Lanka. Apple's 5.3 licensing requirement blocks a compliant path as well.610 |
| Meta (FB/IG) | Banned | Meta only permits online gambling and gaming ads once an ad account is authorized and can show it is licensed or lawful in the target territory; Sri Lanka is treated as an unsupported South-Asian market rather than an eligible one. Because Sri Lanka's framework does not license public gambling advertising and the country is not on Meta's eligible list, authorization to run gambling/betting ads to Sri Lankan users is not obtainable.11 |
| TV & Radio | Banned | Broadcasting a gambling advertisement is directly regulated by the Gambling Regulatory Authority Act, No. 17 of 2025: s.44 makes advertising unlicensed gambling a criminal offence, and s.54 makes it an offence to publish, broadcast or disseminate any gambling advertisement that is false/deceptive or that implies gambling resolves financial difficulties or improves social status (fine up to LKR 100,000 and/or up to 2 years' imprisonment). The GRA is further empowered to set 'restrictions on advertising gambling' by regulation, and no licensed public broadcast gambling advertising regime currently exists.12 |
| Sponsorships | Restricted | Gambling sponsorship is not separately carved out but falls under the GRA Act's advertising controls: s.44 criminalizes promoting unlicensed gambling and s.54 bars misleading promotion, while the GRA holds regulation-making power over 'restrictions on advertising gambling.' Sponsorship or branded promotion by unlicensed operators is therefore prohibited, and any licensee activity would be subject to GRA directives that are still being issued as the Authority stands up (operational 1 Dec 2025). Detailed sponsorship rules are pending GRA regulations, so specifics are provisional.12 |
| Digital OOH | Banned | Digital out-of-home and other public dissemination of gambling advertisements are captured by s.54 of the GRA Act, No. 17 of 2025, which penalizes publishing or disseminating misleading gambling advertisements, and by s.44's ban on advertising gambling carried on in contravention of the Act. With no licensed public gambling-advertising regime in place and the GRA empowered to restrict gambling advertising, public digital billboards promoting betting/casino brands are not permissible. GRA implementing regulations may further specify this.12 |
Channel rules for Sri Lanka reflect each platform's published policy and the sources numbered in each row (listed under Methodology & sources). Verify with the local regulator and your ad-platform account manager before launching.
How Sri Lanka enforces against unlicensed operators
Sri Lanka's enforcement intensity is currently low but is expected to increase significantly as the new Gambling Regulatory Authority (GRA) becomes fully operational through 2026. The new legal framework criminalizes unlicensed gambling with substantial penalties, signaling a clear intent to control the market. The current score reflects this transitional phase.
- The Gambling Regulatory Authority Act (2025) introduces a penalty of up to LKR 10 million and/or two years imprisonment for operating without a valid license.
- The government's stated priority for the GRA is to bring the large unregulated online market, estimated at 60-70% of all activity, under its regulatory and tax authority.
- The establishment of the GRA is a measure to improve compliance with international Financial Action Task Force (FATF) standards on anti-money laundering.
Enforcement cases in Sri Lanka: 5 recent
Material regulator actions, court rulings, and high-profile fines from 2016–2026 against operators serving Sri Lanka. Each entry includes the technical failure and a one-line read-across for other operators in the market.
- January 2026
All Licensed Gambling Operators
TaxTax & Levy IncreaseA legislative amendment to the Betting and Gaming Levy Act significantly increased the gross collection levy and doubled the casino entry fee for citizens.
Read-across: This substantial tax hike directly cuts into the profitability of all licensed operators and adds to their operating costs, potentially affecting market viability and pricing strategies.
- March 2025
Bally's Limited and Bellagio Limited
AMLFine LKR 1.5M eachThe operators failed to conduct required customer due diligence (CDD) and lacked adequate systems for managing money laundering and terrorist financing risks.
Read-across: This enforcement by the Financial Intelligence Unit (FIU) signals increased scrutiny of AML compliance in the casino sector. All operators need to review and strengthen their internal controls.
- June 2024
Offshore Online Gambling Operators
Grey-MarketArrests in large-scale crackdownPolice arrested over 200 foreign nationals, mostly Indian, for involvement in a large-scale online financial scam that included illegal betting operations.
Read-across: This major crackdown on foreign-led illegal online operations indicates a growing focus on combating the grey market, potentially leading to future ISP and payment blocking measures.
- June 2022
Bally's Casino and Marina Colombo
TaxSettlement of Unpaid TaxesThe casinos were listed by the Inland Revenue Department for defaulting on hundreds of millions of rupees in taxes stemming from a one-off tax imposed in 2015.
Read-across: The public naming of major operators for tax evasion shows the financial and reputational risks of non-compliance and pressures others to ensure timely tax payments.
- November 2019
All Sports Betting Operators
LicensingNew LegislationThe 'Prevention of Offences relating to Sports Act' criminalized match-fixing and expanded the ban on betting to include overseas sports events.
Read-across: The act imposed stricter obligations and potential criminal liability on operators and individuals involved in sports betting, which fundamentally increased the compliance burden and operational risk.
Market size: 0.06B USD (2025)
Gross gaming revenue in Sri Lanka is approximately 60 million USD annually. The most popular form of gambling is Casino. A culturally distinctive product in this market is Bally's Colombo, Casino Marina, City of Dreams Sri Lanka.
Market breakdown by vertical
- Land-based0.024B USD40.0%
- Sports betting0.024B USD40.0%
- Casino0.006B USD10.0%
- Lottery0.006B USD10.0%
Source: iGB / MeitY Regulatory Breakdown 2026. Splits: online-casino 10.0%, sports 40.0%, land-based 40.0%, lottery 10.0%.
GGR figure15
Licensed operators: ~5
As of 8 Oct 2026, approximately 5 operators hold an active licence in Sri Lanka. Size your entry against this base before committing capital.
Notable licensed operators
Bally's Colombo
Bellagio Colombo
Casino Marina Colombo
Stardust Casino
Traps operators hit in Sri Lanka
Specific operational risks that have caught new entrants in this market. Each item is country-specific. Generic gambling-ops issues (KYC, RG tools) are not included unless they have a local twist.
Underestimating the Shift from Grey Market to Mandatory Local Licensing
Operators who previously served Sri Lankan players from offshore must now cease operations or obtain a 'Digital Gambling License' from the new GRA. The Gambling Regulatory Authority Act, No. 17 of 2025, has eliminated the previous grey market status. Continuing to operate without a local license now carries the risk of fines up to LKR 10 million and criminal prosecution.
Sources13
Navigating New and Increased Tax Burdens
The new framework, effective January 1, 2026, increased the Gross Collection Levy to 18% (from 15%) and doubled the citizen entry fee to $100. Operators must ensure their financial models account for these higher costs, which directly affect margins, particularly for land-based venues.
Compliance with Forthcoming, But Undefined, Regulations
The GRA missed its 30 June 2026 target for its first secondary regulations and has given no new date, so it is not yet fully operational. Operators planning market entry face uncertainty regarding specific technical standards, responsible gaming requirements, advertising rules, and detailed licensing procedures. Early engagement with local legal counsel is critical.
Timeline: rules in force
- January 2026
Increased Tax and Levy Framework Takes Effect
The Betting and Gaming Levy (Amendment) Act, No. 25 of 2025, became effective, raising the GGR tax to 18% and the citizen casino entry fee to $100.
Source: 3
- December 2025
Gambling Regulatory Authority Act Becomes Law
The Gambling Regulatory Authority Act, No. 17 of 2025, came into operation, formally establishing the GRA and repealing all prior gambling ordinances.
Source: 18
- August 2025
Parliament Passes Gambling Regulatory Authority Bill
Sri Lanka's parliament unanimously passed the bill to create a single independent regulator, paving the way for the new comprehensive legal framework.
Source: 19
- August 2025
City of Dreams Sri Lanka Opens
The nation's first integrated resort, a joint venture between John Keells Holdings and Melco Resorts, opened.
Source: 20
- 1988
Betting and Gaming Levy Act Enacted
The Betting and Gaming Levy Act, No. 40 of 1988, was the primary law governing gambling taxation for decades before being amended by the new 2025 legislation.
Source: 21
Operator myths vs reality in Sri Lanka
Common assumptions about gambling licensing that turn out to be wrong in practice.
- MythA Curaçao or MGA license is sufficient to accept players from Sri Lanka.Reality
This is false. The Gambling Regulatory Authority Act of 2025 establishes a mandatory local licensing regime. All foreign licenses are unrecognized, and continuing to serve the market without a GRA license constitutes an illegal operation subject to significant penalties.
Sources13
- MythSri Lanka is an unregulated market open for expansion.Reality
Sri Lanka is now a regulated market with a clear 'regulation, not expansion' policy. The government's focus is on bringing existing land-based and grey-market online operators into a strict compliance framework, not on issuing a large number of new licenses.
Sources18
- MythThe only major operator tax is the 18% GGR levy.Reality
While the 18% Gross Collection Levy is the primary operational tax, license acquisition and renewal fees are substantial, running into millions of dollars for land-based casinos. Online license fees, while not yet published, are also expected to be significant.
Sources2
Markets that work like Sri Lanka
Compared on what our records hold for each country: whether online casino, betting, poker and lottery are licensed, state-run or banned, the licensing model, what the operator tax is levied on and its band, how most advertising channels are treated, and how foreign licences are treated. A point we hold for only one of the two countries counts for nothing.
- MauritiusAI overview
Online casino, betting, poker and lottery licensed; licensed market; GGR tax 10–20%; most ad channels banned.
- LatviaChecked
Online casino, betting and poker licensed; licensed market; GGR tax 10–20%; most ad channels banned.
- NamibiaAI overview
Online casino, betting, poker and lottery licensed; licensed market; GGR tax 10–20%; foreign licences mostly banned.
- GreenlandAI overview
Online casino, betting, poker and lottery licensed; licensed market; tax on GGR; most ad channels banned; foreign licences mostly banned.
- ItalyReviewed
Online casino, betting, poker and lottery licensed; licensed market; tax on GGR; most ad channels banned.
Methodology & sources
This page is a Quick AI overview: a summary of public information, not yet checked against the law or the regulator. Treat it as a starting point. It has not yet been through our Deep AI Scan.
How we researchAsk us to run the Deep AI Scan for Sri Lanka
Documents cited on this page
- 1iGaming Business
- 2AGBrief
- 3Yogonet
- 4conventuslaw.com
- 5desaram.com
- 6Google Ads gambling & games policy
- 7Google gambling certification eligibility update (Mar 2026)
- 8Google Play gambling app country allowances
- 9Apple App Store Review Guideline 5.3
- 10Google Play gambling policy
- 11Meta online gambling ad standard
- 12Gambling Regulatory Authority Act, No. 17 of 2025 (Parliament of Sri Lanka)
- 13Conventus Law
- 14SiGMA World
- 15iGB / MeitY Regulatory Breakdown 2026
- 16SiGMA World
- 17World Casino Directory
- 18Intergame Online
- 19SiGMA World
- 20Daily Mirror
- 21Lanka Law
- Gambling Regulatory Authority of Sri Lanka Bill (Parliament Bill 613-2025): supersedes and references the Casino Business (Regulation) Act No. 17 of 2010 and the Betting and Gaming Levy Act; published by the Parliament of Sri Lanka
- Casino Business (Regulation) Act, No. 17 of 2010: Sri Lanka’s primary casino statute; certified 7 December 2010, published as a Supplement to Part II of the Gazette (LDH cross-verified, LK-ACT-2010-017)
- Betting and Gaming Levy (Amendment) Act, No. 11 of 2023: most recent amendment to the Betting and Gaming Levy Act; certified 21 August 2023 (LDH cross-verified, LK-ACT-2023-011)
- The Morning: draft gambling regulations to be presented later in 2026 (July 2026, national press)
Looking for the player guide?
For consumer-facing information about gambling in Sri Lanka (tax on winnings, where to play legally, self-exclusion options), see the Sri Lanka player guide.
Disclaimer. This page reflects the law as we understood it on 8 Oct 2026. Rules change: always check the current position with Gambling Regulatory Authority (GRA). We are not a legal adviser.