Mahinda Rajapaksa, the President of Sri Lanka, has put forward the idea of making some changes in the current gambling rules and regulations of the country and in the Betting and Gaming Levy Act in particular.
The President proposed an entrance fee of $100 to be implemented and valid for all Sri Lanka-based players and respectively all casino owners who operate within the country have to comply with it. In addition, the President suggested the gaming taxes to be increased and according to his proposal, every gaming provider will be supposed to pay a tax, equal to 10% of the turnover of the venue they manage. What’s more, Rajapaksa also suggested the current tax, concerning the gross income of the casinos to be raised as well.
The President made these suggestions last week when the country’s budget affairs for the next year have been discussed by the Government authorities.
Despite the draconian measures proposed, the President didn’t give an answer to the question if the entrance fee, which is, by the way, considered to be a bit too high for players’ liking, will apply to locals only.
The reason why the President, who is also responsible for the Ministry of Finance, has suggested these new taxes, was boosting the local economy. If accepted, the new fees are estimated to contribute to the revenue with more than $19 million.
Rajapaksa said that the Government authorities should dedicate all their efforts to providing the residents with improved public services, programs, intended to contribute to the well being of the citizens and investments that have the same purpose.
However, the opposition is absolutely convinced that the actions, taken by Rajapaksa are caused not only by his willingness to improve the living standard of the residents. The truth is that the opposition accused Rajapaksa of hypocrisy. They believe that Rajapaksa is trying to get more sympathizers for the upcoming elections and become a President of the country for the third time. Some even believe that he fact that Mahinda Rajapaksa is taking every problematic aspect of the local gambling sector into consideration is a result of the interests of key figures in the industry.
Regardless of the reasons for the proposals, made by Rajapaksa, their acceptance will be definitely favourable to the country. Yet, his actions met the dissatisfaction of Jathika Hela Urumaya who thinks that the President’s actions are in violation of the agreement, made between the different political and religious communities in Sri Lanka.
Some gambling providers might get lucky and take advantage of the shaky gambling industry in Sri Lanka. Lames Packer is a vivid example of a prominent investor who might get the chance to establish a luxurious resort in the country. However, despite the approval of the gambling regulators, the local communities were furious with his intention to build a spacious hotel as well as casino.
