South Asia's first integrated resort, City of Dreams Sri Lanka, welcomes its inaugural Global Gaming Connect Expo this month. Government officials at the expo made it clear that they will fully support the development of a legal, fair, and sustainable gaming industry. This project, operated by Melco Resorts & Entertainment, represents the largest private investment in Sri Lanka to date, costing $1.2 billion. In plain terms, the government is using the gaming sector to revive tourism and foreign investment. Interested in the latest updates on the South Asian gaming market? Follow the PASA official website for ongoing coverage.
Government Support: Industry Driven by Technology and Creativity
The Deputy Minister of Industrial and Entrepreneurial Development emphasized at the expo, "Technology and creativity will drive this industry, and the government will fully support local and regional industry development." Sri Lanka's strategic location—a four-hour flight from Southeast Asia and just two hours from India—is highlighted by the Deputy Minister of Transport, who noted the country's significant potential in the gaming sector, especially to serve growing markets like India. Strict regulation is essential to attract international players like Melco.
Regulation First: Stringent Laws to Attract Investment
The 2025 "Sri Lanka Gambling Regulation Act" mandates "transparency and good governance" to foster "public confidence in the integrity of the gaming industry." The act prohibits "irresponsible products and behaviors," requires plans to "minimize social harm from gambling," and includes anti-money laundering and underage gambling prohibitions. The new law applies to both land-based and online gambling. Officials revealed that currently, 60% to 70% of gamblers still patronize illegal offshore providers. Unlicensed iGaming operators will face fines up to 10 million rupees or two years in prison. The independent Gambling Regulatory Authority, set to be fully operational by the end of June 2025, will enforce the law.
Economic Calculations: Boosting Tourism Recovery Through Gambling
Sri Lanka is recovering from its 2022 economic crisis, with the government directly linking gambling and tourism. This year's target is to attract 3 million tourists, surpassing the record 2.3 million in 2025, with strategies including positioning Sri Lanka as a destination for high-end tourists (including gamblers). Based on an assumption of daily spending rising from $140 to $160, the tourism revenue target is set at $4.5 billion. With gambling taxes increasing from 15% to 18% and local casino entry fees rising, gambling revenue is expected to grow by $250 million annually. Last year, local entry fees doubled to $100, equivalent to 40% to 60% of a Colombo office worker's monthly salary. Sri Lanka is now targeting potential markets like Saudi Arabia, the Middle East, and even the United States. Industry representatives believe that stricter regulation enhances Sri Lanka's appeal to global manufacturers, "People are starting to pay attention to the Sri Lankan market, which is a good opportunity and will continue to grow." Interested in the latest updates on the South Asian gaming market? Follow the PASA official website for ongoing coverage.
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This article is from "PASA-Global iGaming Leaders," a gambling industry news channel:https://t.me/pasa_news
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