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AsiaSri Lanka Boosts Regulatory Oversight and Increases Casino License Fees to Tackle...

Sri Lanka Boosts Regulatory Oversight and Increases Casino License Fees to Tackle Tax Evasion

Sri Lanka’s Ministry of Finance recently approved the establishment of a formal gaming regulator to oversee the casino industry. State Minister of Finance Ranjith Siyambalapitiya announced this move, emphasizing the regulator’s role in managing casino tax collection, combating criminal activities, and mitigating negative societal impacts. This decision comes in response to revelations that casino owners had evaded taxes amounting to US$7.4 million due to a lack of regulatory oversight.

Regulatory Framework:
To formalize the regulatory framework, the minister unveiled an updated fee structure for obtaining and renewing casino licenses. Effective January 1, 2024, the tiered fee system is based on the level of investment, targeting both existing and new operators.

Fee Structure for Existing Operators:
Existing operators are now required to pay Rs 500 million (US$1.55 million) for the first five years and Rs 1.5 billion (US$4.66 million) for the subsequent 15 years combined. Additionally, a renewal fee of Rs 10 billion (US$31.0 million) is mandated, reflecting the government’s commitment to bolstering regulatory compliance and revenue generation.

Fee Structure for New Operators:
New entrants committing a minimum investment of US$250 million will be subject to a combined license and renewal fee of Rs 10 billion. For those pledging at least US$500 million, an initial license fee of Rs 5 billion, coupled with renewal fees of Rs 10 billion, is prescribed. This strategic approach aims to attract substantial investments while ensuring strict regulatory adherence.

Increased Entry Fees for Local Customers:
In a bid to discourage local gambling, entry fees for Sri Lankan customers are set to increase from US$50 to US$200. This measure aligns with the government’s efforts to promote responsible gambling practices and protect the local population from potential adverse effects.

Evaluation of New License Applications:
The government has received ten applications for new casino licenses, all of which are currently under evaluation at varying stages. This thorough evaluation process emphasizes the government’s commitment to selecting operators who align with regulatory standards and contribute positively to the economy.

Background on Sri Lanka’s Current Casino Landscape:
Sri Lanka currently boasts six legal casinos, namely Bally’s, Bellagio, Casino Marina, Stardust, Continental Club, and The Ritz Club. These establishments will now operate under the enhanced regulatory framework, ensuring a level playing field and fostering a more transparent and accountable gaming industry.

Sri Lanka’s move to establish a formal gaming regulator and update casino license fees reflects a proactive approach to address tax evasion, promote responsible gambling, and enhance regulatory oversight. The tiered fee structure, increased entry fees, and stringent evaluation of new license applications contribute to a comprehensive regulatory framework that aims to balance economic interests with social responsibility in the thriving casino industry.

Statement: The data and information in this article comes from the Internet, and was originally edited and published by our. It is only for research and study purposes.

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