At the inaugural Global Game Connect conference at City of Dreams Sri Lanka, government officials talked up the benefits of its growing legal gaming sector.
At the 2026 Global Game Connect (GGC) conference in Sri Lanka, officials reiterated their commitment to a legal, fair and sustainable gaming industry.
The show took place earlier this month at City of Dreams Sri Lanka, the first integrated resort in South Asia. The $1.2 billion IR, with a casino operated by Melco Resorts & Entertainment, opened in 2025. It is the largest private investment in Sri Lanka to date.
Deputy Minister of Industries and Entrepreneurship Development Chathuranga Abeysinghe told conference attendees that “technology plus creativity will drive this industry. … From a government perspective, we will give our fullest support to drive this industry both here and in the region”.
Sri Lanka benefits from its location, four hours by air from Southeast Asia and two hours from India. “We have significant potential for [gaming], particularly for growing markets next to us, like India,” said Deputy Transport Minister Susil Ranasinghe at GGC.
Stricter regulation a prerequisite for operators
Rigorous regulation is a must to entice operators like Melco, a global player based in Macau. The 2025 Sri Lanka Gambling Regulatory Act calls for “transparency and good governance” to foster “public confidence in the integrity of the gambling industry”.
It bans “irresponsible products and practices” and calls for programmes “to minimise social harm associated with gambling”. It also includes measures to curb financial crimes like money laundering and prevent people under 18 from gambling.
The legislation applies to land-based and online gaming. Officials say 60% to 70% of punters now patronise illegal offshore providers. Penalties for unlicensed iGaming operators include up to Rs. 10 million ($107,000) or two years of imprisonment.
The independent Gambling Regulatory Authority, also formed in 2025, was established to enforce the act. It is set to be fully operational by the end of June.
Sri Lanka links gaming, tourism
As Sri Lanka continues to recover from the 2022 economic crisis, officials are drawing a direct line between gaming and tourism. They have set a goal of up to 3 million visitor arrivals this year, surpassing the 2025 record of 2.3 million. Their strategy includes positioning the island as a destination for high-end tourists, including gamblers. The tourism revenue target of $4.5 billion is based on an average daily expenditure per person of $160, up from $140 in 2025.
With an increase in the gaming levy from 15% to 18% and higher casino entry fees for locals, gaming revenue is expected to generate an additional $250 million per year. But when it comes to brick-and-mortar casinos, the bulk of revenue is likely to come from foreigners. By one estimate, the locals entry levy, which doubled last year from $50 to $100, is equivalent to 40%~60% of the starting monthly salary of an office worker in Colombo.
So Sri Lanka is casting its net wide. According to Tourism Development Authority Chairman Buddhika Hewawasam, the country sees Saudi Arabia and the wider Middle East as potential feeder markets, as well as the United States.
On the sidelines at GGC, a representative from iGaming platform provider Diamante Tech said stricter regulation of gaming in Sri Lanka has enhanced its appeal for global manufacturers and suppliers. “There is a sense that people are now looking at the Sri Lankan market. It is a really good move… and a good opportunity. It is only going to grow.”
Marjorie Preston
Marjorie began her gaming career in 2007 and has focused on Asian gaming markets since 2020. Outside of work, she writes about travel and film and plays the drums.
