The new government will go ahead to proceed with the drafting of a bill related to the establishment of a Gambling (Cacino) Regulatory Authority, Sri Lanka’s Cabinet of Ministers has given. Approval for this purposes
On 26 June, 2023, the then-Cabinet of Ministers had approved the establishment of a Gambling Regulatory Authority as an independent establishment with a broad and complete subject arena to standardize gambling institutions, minimize social damage, promotion of tourism sector and ensure economic growth.
The Legal Draftsman has informed that the concurrence of the current Cabinet of Ministers is sought to continue the process of drafting bills.
Accordingly, the proposal submitted by the President, in his capacity as the Minister of Finance, Planning and Economic Development, to grant the policy approval of the Cabinet of Ministers for formulating the said draft bill with immediate effect, has received the Cabinet approval.
Sri Lankan authorities have officially taken a decision for the establishment of a gaming regulatory authority in the wake of ever increasing tax evasion by a handful of local casino owners, finance ministry sources disclosed.
The new authority would oversee casino tax collection, counter criminal activity and negative societal impacts from gaming, state minister of finance Ranjith Siyambalapitiya said.
Cabinet of Ministers of the previous regime has also given a green light to the gambling regulatory authority, following a proposal submitted by the president recently.
The g previous overnment has been trying to set up a regulatory body, aimed at ensuring casino owners pay their fair share of taxes.
It has also been agreed to issue new casino licenses, revealing that a 2010 law regulating casinos required such licenses, but that none had been issued.
According to recent estimates of the finance ministry, a sum of US $7.4 million in casino taxes were in arreas due to lack of regulatory oversight.
Ten new operators have applied for licenses to establish casinos in the country casinos but the government is yet to grant its approval, former State Minister Ranjith Siyambalapitiya disclosed.
Minister Siyambalapitiya said the applications were in various stages of evaluation and no licenses have been issued so far.
Six casinos are currently operating in Colombo including Bally’s,Bellagio Entertainment, Casino Marina, Stardust, Continental Club, and The Ritz Club.
Singapore’s Kreate Design Pte Ltd is planning to invest $1 billion within the next three years to convert Colombo Lotus Tower, in Sri Lanka’s capital, into an ‘entertainment hub’, including a casino.
The then government has introduced new laws on casinos making way for the levying of a sum of Rs. 500 million when granting a license for a period of five years, he said adding that. Entrance fees for casinos will be increased.
It has planned to increase the fee to $ 200 over three years to discourage locals playing casinos, he said.
The previous regime has re imposed a fee of $ 50 on every Sri Lankan who enters such a place of business of gaming with effect from April 2023. This regulation was in place since 2015.
From 2015, the stated law was to charge $ 100 from a person, but not a cent has been charged over eight years up to 2023, he disclosed.
The inland Revenue Department commenced charging this amount of $50 with effect from April 2023 he said adding that an entrance fee had been increased to $ 200 from of $50 will reduce the participation of Sri Lankans in casino gaming.
