Is online gambling legal in Sri Lanka?

Only under a licence that does not yet exist in practice. The Gambling Regulatory Authority Act, No. 17 of 2025 requires a gambling licence and a separate digital gambling licence for internet or mobile gambling, but the Orders and regulations needed to issue them had not been published at the review date. Operating or advertising unlicensed gambling is an offence, and unlicensed websites, published in lists of 24 and 122 domains, were blocked on 6 August 2026.

Who regulates gambling in Sri Lanka?

The Gambling Regulatory Authority, in operation since 1 December 2025 under the Minister of Finance. Its board includes the Treasury Secretary, the Commissioner General of Inland Revenue, the head of the Financial Intelligence Unit and the Inspector General of Police. The Inland Revenue Department collects the betting and gaming levies, and the Telecommunications Regulatory Commission blocks unlicensed sites.

How is gambling taxed in Sri Lanka?

A gross collection levy of 18% on gaming and bookmaking businesses for years from 1 January 2026 (15% before), payable monthly where gross collection exceeds Rs 1 million a month, an annual levy of Rs 500 million on a casino business, annual bookmaker levies of up to Rs 5 million, and a USD 100 casino entrance levy on Sri Lankan citizens. Levy payers are outside VAT and the Social Security Contribution Levy on that collection.

What does a gambling licence require?

The applicant must be a company incorporated or registered in Sri Lanka under the Companies Act, No. 7 of 2007, with a minimum capital set by Gazette Order, pay the prescribed fee and pass a fit and proper review of its directors, shareholders and beneficial owners. It must also register its premises and have its games and maximum stakes approved. The capital and fee amounts had not been gazetted at the review date.

Do casinos licensed under the old law need to reapply?

No. Casino licences issued under the Casino Business (Regulation) Act, No. 17 of 2010 and in force on 1 December 2025 are deemed issued under the new Act and continue, as do bookmaker certificates under the repealed horse-racing Ordinance (s.78(2)).

What is the minimum gambling age in Sri Lanka?

18. Gambling with, or allowing gambling by, a person under 18 is an offence under the 2025 Act, and employing anyone under 21 in a gambling operation is also an offence.

Sovereign state

Asia

ISO LK

Sri Lanka: gambling regulation and licensing

Land-based (reference)Regulated
Online sports bettingPre-regulation
Online casinoPre-regulation
Online pokerPre-regulation
Horse race bettingRegulated

Regulator: Gambling Regulatory Authority
Headline tax: Not yet verified
Licence required: Yes
Last verified: 23 Sept 2026

Summary

Sri Lanka is moving from a tax-only regime to a licensed one, but the licences have not arrived. The Gambling Regulatory Authority Act, No. 17 of 2025 came into operation on 1 December 2025. It creates a regulator under the Minister of Finance, repeals the Casino Business (Regulation) Act 2010 and the gaming and horse-racing ordinances, and carries over existing casino licences and bookmaker certificates. Its definition of gambling covers betting, casinos, cruise-ship casinos, junkets and digital gambling, meaning internet and mobile play. Online operators would need a gambling licence plus a separate digital gambling licence, held by a company incorporated or registered in Sri Lanka with a minimum capital still to be fixed by Gazette Order. Software suppliers and junket operators need their own licences. None of the first-phase Orders or regulations had been published at the review date, so no online licence has been issued. Unlicensed supply is being pursued: on 6 August 2026, on notice from the Authority, the telecoms regulator blocked unlicensed betting and gambling websites published in two lists of 24 and 122 domains, treating their operation as an offence under s.44. Taxation runs through the Inland Revenue Department under the Betting and Gaming Levy Act. Gaming and bookmaking pay a gross collection levy of 18% from 1 January 2026, up from 15%, plus an annual Rs 500 million levy on each casino business, bookmaker levies of up to Rs 5 million a year, and a USD 100 entrance levy on Sri Lankan citizens entering a casino physically or via internet. The department collected Rs 10.24 billion in Betting and Gaming Levy in 2025. The minimum gambling age is 18.

Common pitfalls

Citing the Act as No. 16 of 2025: the certified text is No. 17 of 2025. Treating the Casino Business (Regulation) Act 2010 as current: it was repealed on 1 December 2025, although its licences continue. Reading Inland Revenue registration of an internet bookmaker as a licence: the levy Act states that paying the levy confers no legality.

Key facts

Regulator: Gambling Regulatory Authority (GRA)
Regulator type: Dedicated regulator
Headline tax: Not yet verified
Licence required: Yes
Minimum age: 18+
Tax base: Gross collection levy on the business of bookmaker or of gaming: 18% for years commencing on or after 1 January 2026 (15% from 1 April 2023) on the gross collection, which the Act defines as the total amount recovered from the business in the month; it applies where gross collection exceeds Rs 1 million a month and is paid monthly by the end of the first week of the following month, with quarterly returns (Act No. 40 of 1988, s.2(1A) to (1D)). The Act does not say whether winnings paid out are deducted. On top of that: an annual levy of Rs 500 million on a gaming business; annual bookmaker levies of Rs 5 million (through an agent or via internet), Rs 1 million (with live telecast) or Rs 75,000 (without); and a casino entrance levy of USD 100 (USD 50 before 1 January 2026) collected from every Sri Lankan citizen entering a gaming business physically or via internet, non-citizens exempt. Late payment of the gross collection or entrance levy attracts a 10% penalty plus 10% per further 30 days, capped at 50%.

Legal framework

Primary statutes

Gambling Regulatory Authority Act, No. 17 of 2025
Year
2025
In force
Yes
Summary
Establishes the Gambling Regulatory Authority under the Minister of Finance and applies to all gambling except the lotteries of the Development Lotteries Board and the National Lotteries Board and social gambling (s.2). Gambling covers betting, gaming, online gaming, casinos, cruise-ship casinos, junket operations and digital gambling (s.79). Licences are issued by the Director-General to companies incorporated or registered under the Companies Act, No. 7 of 2007 with a minimum capital fixed by Gazette Order (ss.15 and 16); digital gambling, gambling software and junket operations each need their own licence (ss.18, 33 and 35). Repeals the Betting on Horse-Racing Ordinance, the Gaming Ordinance and the Casino Business (Regulation) Act 2010, continuing existing casino licences and bookmaker certificates (s.78). In operation from 1 December 2025 by Order under s.1(2).
Betting and Gaming Levy Act, No. 40 of 1988, as amended (latest by Acts No. 11 of 2023 and No. 25 of 2025)
Year
1988
In force
Yes
Summary
The fiscal statute. Charges annual levies on every person carrying on the business of bookmaker or of gaming, whether lawfully or unlawfully, plus a monthly gross collection levy (15% from 1 April 2023, 18% for years commencing on or after 1 January 2026) where gross collection exceeds Rs 1 million a month, and a casino entrance levy on Sri Lankan citizens (USD 50 from 1 April 2023, USD 100 under Act No. 25 of 2025). Since 2023 "bookmaker" includes receiving bets via internet, and gaming premises include access via internet.

Key amendments

1 Jan 2026Gross collection levy rises from 15% to 18% for any year commencing on or after 1 January 2026, and the casino entrance levy on citizens rises from USD 50 to USD 100 (Act No. 25 of 2025, certified 17 December 2025).
1 Dec 2025Gambling Regulatory Authority Act, No. 17 of 2025 comes into operation, establishing the Authority and repealing the Betting on Horse-Racing Ordinance, the Gaming Ordinance and the Casino Business (Regulation) Act, No. 17 of 2010.
1 Apr 2023Act No. 11 of 2023: gross collection levy set at 15%, annual gaming levy raised to Rs 500 million, bookmaker levies re-tiered with a Rs 5 million band for agent or internet bookmaking, internet betting brought into the bookmaker definition, casino entrance levy limited to citizens at USD 50, and levy payers taken out of the Social Security Contribution Levy.
1 Jan 2012Casino Business (Regulation) Act, No. 17 of 2010: casinos may operate only under a ministerial licence and in areas designated by Gazette Order.

Pending legislation

First-phase Orders and regulations under the Gambling Regulatory Authority Act
Stage
Drafted and under review by an expert committee appointed by the Cabinet, as reported to Parliament's Committee on Public Finance in July 2026; not published at the review date.
What it changes
The Authority named the first phase as a s.19 Order defining authorised gambling, licensing regulations, rules for online gambling and anti-money laundering rules. Separately, the Act needs a s.16 Order fixing minimum capital and prescribed fees before any licence can be issued.

Licensing

Licence required: Yes
Application window: Not yet verified
Local establishment required: Yes
Local server required: Not yet verified
Certification requirements: Gambling software must carry compliance certifications from accredited third-party auditors and run on transparent algorithms audited and certified by the prescribed authority (s.33(2)(b) and (3)(d)). Each licensee must have its rules of gambling, list of games and maximum stakes approved by the Authority (s.20).
Barriers to entry: The applicant must be a company incorporated or registered in Sri Lanka under the Companies Act, No. 7 of 2007, with a minimum capital the Minister will fix by Gazette Order (s.16(1)), and passes a fit and proper review of directors, senior managers, shareholders, key personnel and beneficial owners (s.16(5)). Licences cannot be transferred without the licence allowing it, the Director-General's written consent and Board approval (s.27), and any change of 50% or more of shares or voting rights must be notified within a month (s.28). A casino also pays an annual levy of Rs 500 million before any gross collection levy.

Licence types

Gambling licence
Scope
Carrying on any gambling authorised under s.19; issued by the Director-General (s.15). Existing casino licences are deemed issued under the Act (s.78(2)(c)).
Term
As specified in the licence (s.23)
Fee basis
Application fee prescribed by regulation (s.16(3)); not gazetted at the review date.
Renewal terms
Apply at least 30 days before expiry with the prescribed renewal fee; renewal depends on compliance with the Act, the levy, tax, AML and foreign exchange laws, no public complaint and no pending criminal investigation of owners or key personnel (s.24).
Digital gambling licence
Scope
Required in addition to a gambling licence to carry on digital gambling, including interactive, internet and mobile gambling (ss.18 and 79). The manner of operation is to be specified by Gazette Order.
Term
As specified in the licence (s.23)
Fee basis
Section 16 applies with the necessary changes; fee prescribed by regulation, not gazetted at the review date.
Certificate of registration of premises
Scope
Every licensee must register the premises where gambling takes place (s.17); gambling from unregistered premises is an offence (s.45). Bookmaker certificates under the repealed horse-racing Ordinance continue (s.78(2)(a)).
Term
As specified in the certificate (s.23)
Fee basis
Prescribed fee (s.17(3))
Renewal terms
As for licences (s.24)
Gambling software licence
Scope
Developing, distributing or operating gambling software (s.33). Applications need product specifications, third-party auditor compliance certifications and data protection information; software may be supplied only to licensed operators.
Term
As specified in the licence (ss.23 and 33(5))
Junket operator licence
Scope
Operating as a junket operator (s.35). The applicant must satisfy the Director-General of its financial stability, integrity and competence and keep full records of patrons and transactions.
Term
As specified in the licence (ss.23 and 35(2))

Taxation

Headline GGR tax: Not yet verified
Effective date: 1 Jan 2026
Turnover tax: 18%
Withholding mechanism: The operator collects the casino entrance levy from each citizen entrant and pays it to the Commissioner-General with its levy instalments (Act No. 40 of 1988, s.2(1AA) and (1B)).
VAT treatment: A person liable to the gross collection levy is not liable to Value Added Tax, Nation Building Tax or the Social Security Contribution Levy on that collection (Act No. 40 of 1988, s.2(1A) proviso, as amended by Act No. 11 of 2023).
Tax base: Gross collection levy on the business of bookmaker or of gaming: 18% for years commencing on or after 1 January 2026 (15% from 1 April 2023) on the gross collection, which the Act defines as the total amount recovered from the business in the month; it applies where gross collection exceeds Rs 1 million a month and is paid monthly by the end of the first week of the following month, with quarterly returns (Act No. 40 of 1988, s.2(1A) to (1D)). The Act does not say whether winnings paid out are deducted. On top of that: an annual levy of Rs 500 million on a gaming business; annual bookmaker levies of Rs 5 million (through an agent or via internet), Rs 1 million (with live telecast) or Rs 75,000 (without); and a casino entrance levy of USD 100 (USD 50 before 1 January 2026) collected from every Sri Lankan citizen entering a gaming business physically or via internet, non-citizens exempt. Late payment of the gross collection or entrance levy attracts a 10% penalty plus 10% per further 30 days, capped at 50%.

Compliance

Minimum age: 18+
National self-exclusion: Not yet verified
AML regime: The Authority issues rules and guidelines on compliance with the Prevention of Money Laundering Act, No. 5 of 2006, the Convention on the Suppression of Terrorist Financing Act, No. 25 of 2005 and the Financial Transactions Reporting Act, No. 6 of 2006, and must carry out a money laundering risk assessment of the sector (ss.5(f) and 6(e)). Breaches of those Acts are grounds to refuse renewal, suspend or cancel a licence (ss.24, 29 and 30).
AML supervisor: Gambling Regulatory Authority, with the Financial Intelligence Unit
Loss limits: Gambling software must give players tools to set their own limits on spending, time or losses (s.33(4)(c)(i)).
KYC requirements: Licensees must record all customer details, each cash-in and cash-out transaction in a gambling day, suspicious transactions, large cash transactions and electronic funds transfers (s.59). Applicants' directors, shareholders and beneficial owners are vetted as fit and proper (s.16(5)).
Stake limits: Each licensee submits its games and a maximum stake for each for the Authority's approval and must display the approved maximum stakes (ss.20 and 21).
Mandatory player messaging: Gambling software must show prominent warnings about the risks of gambling addiction with links to support resources, and must block people registered in self-exclusion programmes (s.33(4)(c)).
Reporting obligations: Notify any change of corporate control within one month (s.28); report suspicious activity or breaches by junket operators to the Director-General (s.35(6)); produce books and records on demand and allow inspection (ss.5(g) and 60). Gambling with, or allowing gambling by, a person under 18 is an offence (ss.51 and 52), and employing anyone under 21 in a gambling operation is an offence (s.53).
Game content restrictions: Gambling software may not mislead players about odds or outcomes, allow under-age play or run on algorithms that have not been audited and certified (s.33(3)). Prohibited gambling machines are an offence (s.50).

Advertising

Advertising permitted: Yes
Social media rules: The offences apply to anyone who publishes, broadcasts or otherwise disseminates a gambling advertisement (s.54). The Minister may make further advertising restrictions by regulation (s.76(2)(f)); none had been located at the review date.
Penalties for breach: On conviction by a Magistrate, a fine of up to Rs 100,000 or up to two years' imprisonment, or both (ss.44 and 54), with a possible additional fine of up to Rs 1 million (s.56).

Restrictions

No advertising of gambling carried on in breach of the Act, which covers unlicensed operators (s.44)
No advertisement with false, deceptive or misleading information about the nature, risks or chances of winning (s.54(a))
No advertisement implying that gambling can resolve financial difficulties or improve social status (s.54(b))

Payments

Credit card ban: No
Crypto stance: Not yet verified
Permitted methods: Cash, Debit card, Credit card
Currency restrictions: Gambling transactions are to be made in currency or by debit or credit card at a main cash desk set up by the operator, subject to the Financial Transactions Reporting Act, No. 6 of 2006 and the Foreign Exchange Act, No. 12 of 2017 (s.22). Financing unlawful gambling is itself an offence (s.48).

Enforcement

ISP blocking: Yes
DNS blocking: Not yet verified
Payment blocking: Not yet verified
App store takedowns: Not yet verified
Administrative penalties: The Director-General may, on the recommendation of a three-member expert panel and in the case of a first offender, impose a monetary penalty of up to one third of the maximum court fine; an admitted and paid penalty bars prosecution (ss.63 and 66). Licences and premises certificates may be suspended or cancelled after a show-cause notice (ss.29 to 31), and the Authority may seek an interim injunction against continuing breaches (s.65).
Criminal penalties: Carrying on gambling without a licence: fine up to Rs 10 million or up to two years' imprisonment, or both (s.42). Advertising unlawful gambling, unregistered premises, organising or financing unlawful gambling and under-age gambling: up to Rs 100,000 or two years (ss.43 to 54). Any other breach: up to Rs 10 million or two years (s.55), plus an additional fine of up to Rs 1 million (s.56). Tried in the Magistrate's Court, or indicted in the High Court in aggravated cases (s.58).
Operator liability: Unlicensed operators commit offences under ss.42 and 44 and their websites are blocked by the Telecommunications Regulatory Commission on notice from the Authority.
Player liability: A person who knowingly enters, remains or is found in premises where gambling is carried on in breach of the Act commits an offence: fine up to Rs 100,000 or up to two years' imprisonment (s.49). The Act does not state how this applies to online play.

Notable actions

24 unlicensed online betting and gambling websites, including 1xbet.com, bet365.com, betway.com, stake.com and parimatch.com6 Aug 2026
Telecommunications providers instructed to block access from Sri Lanka with immediate effect, on notice from the Gambling Regulatory Authority under ss.15, 16, 18 and 44 of the Act
122 unlicensed online betting and gambling domains (a separate list, largely mirror domains, with some repeats and one overlap with the list of 24), including mirror and country domains of 1xBet, bet365, Melbet, 22Bet, Stake, Mostbet and Parimatch6 Aug 2026
Blocked with immediate effect by the Telecommunications Regulatory Commission on notice from the Authority

Timeline

1 Jan 2012
Casino licensing under the Casino Business (Regulation) Act, No. 17 of 2010 takes effect.
1 Apr 2023
Betting and Gaming Levy (Amendment) Act, No. 11 of 2023 takes effect: gross collection levy 15%, annual gaming levy Rs 500 million, internet bookmaking brought into the levy, casino entrance levy USD 50 for citizens.
3 Sept 2025
Gambling Regulatory Authority Act, No. 17 of 2025 certified.
1 Dec 2025
The Act comes into operation; the 2010 casino Act and the gaming and horse-racing ordinances are repealed.
17 Dec 2025
Betting and Gaming Levy (Amendment) Act, No. 25 of 2025 certified: levy to 18% and entrance levy to USD 100 from 1 January 2026.
1 Jan 2026
Gross collection levy of 18% and USD 100 casino entrance levy apply.
6 Aug 2026
Telecommunications Regulatory Commission blocks unlicensed gambling websites on notice from the Authority, published in two lists of 24 and 122 domains.

Outlook

The item to watch is the first-phase package the Authority described: the s.19 Order defining authorised gambling, licensing regulations, online gambling rules and anti-money laundering rules, alongside the minimum-capital Order the Act also requires. The Authority told Parliament's Committee on Public Finance in July 2026 that the drafts were with an expert committee appointed by the Cabinet. Until they are gazetted, no online licence can be issued and website blocking remains the main enforcement tool. Any regulation must be laid before Parliament within three months of publication (s.76(4)).

Frequently asked questions

Is online gambling legal in Sri Lanka?: Only under a licence that does not yet exist in practice. The Gambling Regulatory Authority Act, No. 17 of 2025 requires a gambling licence and a separate digital gambling licence for internet or mobile gambling, but the Orders and regulations needed to issue them had not been published at the review date. Operating or advertising unlicensed gambling is an offence, and unlicensed websites, published in lists of 24 and 122 domains, were blocked on 6 August 2026.
Who regulates gambling in Sri Lanka?: The Gambling Regulatory Authority, in operation since 1 December 2025 under the Minister of Finance. Its board includes the Treasury Secretary, the Commissioner General of Inland Revenue, the head of the Financial Intelligence Unit and the Inspector General of Police. The Inland Revenue Department collects the betting and gaming levies, and the Telecommunications Regulatory Commission blocks unlicensed sites.
How is gambling taxed in Sri Lanka?: A gross collection levy of 18% on gaming and bookmaking businesses for years from 1 January 2026 (15% before), payable monthly where gross collection exceeds Rs 1 million a month, an annual levy of Rs 500 million on a casino business, annual bookmaker levies of up to Rs 5 million, and a USD 100 casino entrance levy on Sri Lankan citizens. Levy payers are outside VAT and the Social Security Contribution Levy on that collection.
What does a gambling licence require?: The applicant must be a company incorporated or registered in Sri Lanka under the Companies Act, No. 7 of 2007, with a minimum capital set by Gazette Order, pay the prescribed fee and pass a fit and proper review of its directors, shareholders and beneficial owners. It must also register its premises and have its games and maximum stakes approved. The capital and fee amounts had not been gazetted at the review date.
Do casinos licensed under the old law need to reapply?: No. Casino licences issued under the Casino Business (Regulation) Act, No. 17 of 2010 and in force on 1 December 2025 are deemed issued under the new Act and continue, as do bookmaker certificates under the repealed horse-racing Ordinance (s.78(2)).
What is the minimum gambling age in Sri Lanka?: 18. Gambling with, or allowing gambling by, a person under 18 is an offence under the 2025 Act, and employing anyone under 21 in a gambling operation is also an offence.

iGT coverage of Sri Lanka

Sri Lanka Raises Casino Taxes and Doubles Entry Fees for Locals

Regulatory

5 Jan 2026

Sri Lanka Raises Casino Taxes and Doubles Entry Fees for Locals

Sri Lanka has enforced new gaming taxes for 2026, doubling the casino entry fee for locals to $100 and raising the operator levy to 18% to boost fiscal revenue.

Sources

Gambling Regulatory Authority Act, No. 17 of 2025 (certified 3 September 2025)
Parliament of Sri Lanka
Several law-firm summaries cite this as Act No. 16 of 2025. The certified English text published by Parliament is headed No. 17 of 2025 and that numbering is used here.
Tier 1Accessed 23 Sept 2026Published 3 Sept 2025
Betting and Gaming Levy (Amendment) Act, No. 25 of 2025 (certified 17 December 2025)
Parliament of Sri Lanka
Tier 1Accessed 23 Sept 2026Published 17 Dec 2025
Betting and Gaming Levy (Amendment) Act, No. 11 of 2023 (certified 21 August 2023)
Inland Revenue Department, Sri Lanka
Tier 1Accessed 23 Sept 2026Published 21 Aug 2023
Betting and Gaming Levy Act, No. 40 of 1988, consolidated text incorporating amendments up to 30 April 2013
Inland Revenue Department, Sri Lanka
Unofficial consolidation published by the Inland Revenue Department. Later changes are read from the amending Acts No. 14 of 2015, No. 11 of 2023 and No. 25 of 2025.
Tier 1Accessed 23 Sept 2026
Public notice PN/BGL/2023-01: amendments to the Betting and Gaming Levy Act by Act No. 11 of 2023
Inland Revenue Department, Sri Lanka
Tier 1Accessed 23 Sept 2026Published 5 Sept 2023
Notice to taxpayers carrying on the business of bookmaker and gaming: levy on the gross collection for August 2026, year of assessment 2026/2027
Inland Revenue Department, Sri Lanka
Tier 1Accessed 23 Sept 2026Published 2 Sept 2026
Casino Business (Regulation) Act, No. 17 of 2010 (certified 7 December 2010)
Ministry of Finance, Planning and Economic Development, Sri Lanka
Tier 1Accessed 23 Sept 2026Published 7 Dec 2010
Inland Revenue Department Annual Performance Report 2025
Inland Revenue Department, Sri Lanka
Tier 2Accessed 23 Sept 2026
24 Unauthorized Online Gambling Websites Blocked with Immediate Effect in Sri Lanka
Ministry of Digital Economy, Sri Lanka
Tier 2Accessed 23 Sept 2026Published 6 Aug 2026
122 unauthorised illegal online gambling websites blocked in Sri Lanka (Sinhala, translated for this record)
Official Government News Portal of Sri Lanka (news.lk) (translated)
Government news release reproducing the Telecommunications Regulatory Commission media notice; it states the block was applied on 6 August 2026 and lists all 122 domains.
Tier 2Accessed 23 Sept 2026Published 7 Aug 2026
The Gambling Regulatory Authority Act coming into operation on 1 December 2025
D. L. & F. De Saram (Sri Lankan law firm)
Tier 3, used only for the commencement date. The appointed date was set by Order under s.1(2) in Extraordinary Gazette No. 2463/03 of 17 November 2025, which could not be retrieved from documents.gov.lk in this review; the law firm and The Morning both give 1 December 2025.
Tier 3Accessed 23 Sept 2026
'Scam hub': SL delays gambling regulations, targets October
The Morning (Sri Lankan national newspaper)
Tier 3 report of evidence given by the Authority to Parliament's Committee on Public Finance. Used only for the status of the draft first-phase regulations, which had not been published.
Tier 3Accessed 23 Sept 2026Published 17 Jul 2026