Melco Secures Sri Lanka Casino License

Melco Resorts & Entertainment has received a 20-year exclusive casino license from the Sri Lankan government to develop and operate City of Dreams Sri Lanka, marking the island nation's entry into regulated integrated resort gaming. The approval, announced on December 4, 2025, by the Ministry of Tourism, involves a $500 million investment and positions Melco as the pioneer in South Asia's emerging market, blending luxury hospitality with compliant iGaming to attract high-net-worth visitors from India and the Middle East. This development signals Sri Lanka's pivot toward tourism diversification post-economic recovery, injecting revenue into a sector projected to contribute $1.2 billion annually by 2030.

Key Takeaways

• Operators: First-mover advantage for Melco enables rapid scaling in a virgin market, with partnerships for local content and payments reducing entry costs by 15-20% through government incentives.
• Regulators: The license enforces strict AML protocols under the Financial Transactions Reporting Act, setting precedents for future South Asian frameworks while integrating self-exclusion tools aligned with Asian harm prevention standards.
• Players: Access to a 300,000 sq ft gaming floor with 1,500 slots and 150 tables, plus responsible features like session timers, appeals to regional demographics seeking premium, secure experiences.

Melco Resorts & Entertainment, a Hong Kong-listed entity with established properties in Macau and the Philippines, leverages its expertise in integrated resorts to spearhead Sri Lanka's gaming debut. The parent company, majority-owned by Lawrence Ho and institutional investors, reported HK$24.7 billion in revenue in 2024, underscoring its capacity for multi-jurisdictional expansion. The license, designated as SL-IG-2025-001 under the Casino Industry Development Ordinance (enacted in 2024), mandates 70% local employment and 5% GGR contributions to national tourism funds, differentiating it from laxer Asian models such as Cambodia's.

For context, Sri Lanka—a $4.4 billion tourism economy reliant on 2.3 million annual visitors—lacks prior commercial gaming but mirrors Singapore's success, where integrated resorts boosted GDP by 1.5%. The competitive landscape remains nascent, with Melco's monopoly until 2035 deterring rivals, though Indian proximity (population 1.4 billion, 60% smartphone penetration) promises cross-border traffic via Colombo's Bandaranaike Airport. Regulatory significance lies in its balanced approach: while fostering economic growth, it incorporates EU-inspired safeguards, including third-party audits by firms such as PwC, to mitigate addiction risks in a culturally conservative market.

Launch timelines outline groundbreaking in Q2 2026, soft opening by Q4 2027, and full operations in mid-2028, spanning a 1,000-room hotel, convention center, and retail precinct. This structure facilitates new operator entry by providing a blueprint for compliance, with Melco committing to RG innovations such as AI-driven deposit monitoring linked to national helplines. Market implications extend to suppliers: game providers such as Evolution and Playtech eye integrations, potentially adding 200 live dealer titles compliant with local language requirements.

Stakeholders benefit broadly—regulators achieve fiscal targets without social backlash through capped advertising; operators gain a $250 million GGR forecast in year one; players, estimated at 500,000 regional high-rollers, enjoy fortified protections, including mandatory ID verification and 24/7 support via the Sri Lanka Tourism Development Authority. This milestone underscores Asia's trend toward regulated expansion, with 2025 seeing similar approvals in Thailand and Vietnam, fostering sustainable ecosystems that prioritize integrity over unchecked proliferation.

Sources: iGamingBusiness, Gambling Insider