By Lanka Tax Club Editorial Team
The Inland Revenue Department (IRD) has issued a significant notice regarding the Betting and Gaming industry, announcing immediate changes to levies effective from January 01, 2026.
Following the amendments made to the Betting & Gaming Levy Act, No. 40 of 1988 by the Betting and Gaming Levy (Amendment) Act No. 25 of 2025, operators must adhere to increased rates for both entrance fees and gross collections.
Here is a summary of the critical changes mandated by Notice No. PN/CEL/2025-01.
1. Casino Entrance Levy (CEL) Doubled
The levy charged for entering a casino has been increased by 100%.
- New Rate: USD 100 per entrant (increased from USD 50).
- Applicability: This levy applies specifically to Sri Lankan Citizens entering any place of gaming business.
- Payment Currency: Operators must collect this levy in United States Dollars (USD), its equivalent in any other convertible foreign currency, or in Sri Lankan Rupees (LKR).
2. Gross Collection Levy Increased to 18%
The tax burden on the revenue of betting and gaming businesses has also been revised upward.
- New Rate: 18% (increased from 15%).
- Tax Base: This applies to the gross collection from the business of a bookmaker or gaming business.
- Threshold: The rate applies if the gross collection exceeds Rs. 1 million per month.
Compliance and Enquiries
These changes are effective immediately as of January 01, 2026. Casino operators and bookmakers are legally required to adjust their collection systems to reflect these new rates.
For further clarification on administration or payment methods, operators are advised to contact the IRD Secretariat or the Deputy Commissioner General (Tax Administration).
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