A fee of Rs.500 million will apply for a licence or for the renewal of licence to engage in the Casino Gaming Business for five years, the Government has announced in a set of new regulations under the Casino Business (Regulation) Act of 2010.
President Ranil Wickremesinghe as the Finance, Economic Stabilisation and National Policies Minister, has authorized the relevant Gazette and the regulations are effective from September 1.
“In the event the period applied for in the licence is for multiples of five years, which shall not exceed 20 years, the relevant licence fee for such entire period should be payable upfront,” the Gazette read. Under the new Gazette, any new Casino and the already existing Casinos will be regulated and supervised. Even though the Act was passed into law in 2010, the issuance of regulations had been delayed for more than a decade.
Every application for a licence should be made to the subject Minister, and he may instruct the Commissioner General of Inland Revenue to carry out necessary investigations and inquiries for a proper evaluation of the application.
The Minister may consider whether the applicant has a sound and stable financial background or adequate financial resources to ensure the financial viability of the casino gaming business.
He will also consider “the contribution that such casino gaming business is likely to attribute to the national economy, the importance of the casino gaming business to promote Sri Lanka as a tourist destination and other financial or non-financial benefits that are likely to accrue to Sri Lanka,” the Gazette read.
The Minister has the power to cancel the licence after an inquiry, if the licence holder has acted in contravention of any applicable law including the Betting and Gaming Levy Act, if he has provided false information or if the terms and conditions of the licence have been breached.
Soliciting for the purpose of prostitution or for any other unlawful purpose, unlicensed money-lending or related activities, drunken, disorderly or riotous behaviour, and illegal betting or gaming activities are prohibited within the Casino. Any person below 21 years is strictly prohibited from entering the premises.
A licence holder should prepare a statement of its financial position as at the end of the financial year that provides a true, fair and accurate representation of the financial operations of the licence holder in relation to the Casino and a statement including its gross gaming revenue and net gaming revenue. A licence holder shall keep accurate, complete, legible permanent records of all gaming transactions, and accounting records.
A licence holder should ensure that all annual financial statements are audited in accordance with generally accepted auditing standards by a firm of accountants operating in Sri Lanka.
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