The City of Dreams will be required to “adjust” to new government regulations that are expected to affect the gains made by Sri Lanka’s gaming industry.
Cinnamon Life’s City of Dreams General Manager, Michael Habashi, speaking to The Sunday Times Business on the sidelines of a media event to mark World Tourism Day on Wednesday, said that with the likelihood of new taxes and regulatory measures being imposed, their casino and gaming operations would have to adapt accordingly.
He noted that the industry will inevitably feel the impact of these changes, particularly with the introduction of an 18 per cent tax and the doubling of charges for Sri Lankan patrons visiting their casino and gaming centre.
Under the new framework, the tax on gross collections from betting and gaming operators will increase from 15 per cent to 18 per cent. In addition, the casino entry fee for Sri Lankans will double from US$50 to US$100, while entrance will remain free for foreign visitors. Authorities have stated that these measures are aimed at boosting fiscal revenue while strengthening the regulatory framework for the gambling sector.
To facilitate this, the Treasury has instructed the Legal Draftsman to prepare amendments to the Betting and Gaming Levy Act No. 40 of 1988, which will subsequently be gazetted and presented to Parliament.
Despite having invested in some of the most advanced gaming equipment available in the country, the City of Dreams has yet to feel the full impact of these new measures.
Sri Lanka is the fourth location in the global portfolio of Melco Resorts and Entertainment, following its operations in Macau, Cyprus, and Milan.
Mr. Habashi remarked that each location presents unique challenges. For Sri Lanka, a notable rise in arrivals from China and India has provided a significant boost to the resort. He further added that they are now working to attract more visitors from West Asia, encouraging them to patronise the establishment.
In addition to gaming, Mr. Habashi highlighted that the resort offers a broader tourism experience. Travellers can stay at the property, explore other regions of the island, and engage in activities such as excursions and the purchase of gems and jewellery.
