Sri Lanka’s casino industry has a vibrant yet contentious history, closely linked to the country’s political landscape, economic growth, and tourism strategies. Casinos started emerging in Colombo during the late 1970s and early 1980s, mainly targeting foreign visitors. Unlike many of its regional counterparts, Sri Lanka did not establish a formal casino licensing framework. Instead, operators were granted “entertainment licenses” under the Betting and Gaming Levy Act of 1988. This created a legal grey area that allowed casinos to flourish, but it lacked a solid regulatory framework and the clarity needed to entice institutional investors.