Experts warn Sri Lanka against tax-first approach in casino push

Shaun McCamley

​By Nishel Fernando

​As Sri Lanka looks to integrated resorts to bolster its economic recovery and attract foreign customers, the international gaming experts caution that establishing a robust regulatory framework must precede revenue-focused taxation.

Speaking at the SPiCE South Asia 2026 conference currently underway in Colombo, the industry veterans mapped out a blueprint for the country to safely expand its gaming operations while avoiding the structural missteps that have plagued the other 

emerging markets.

​Reflecting on the historical context of Sri Lanka’s gaming sector during a fireside chat titled ‘Integrated Resorts, Integrated Futures’, international gaming veteran Shaun McCamley highlighted the pitfalls of operating without comprehensive oversight.  Recalling his earlier visits to the island in the mid-1990s, McCamley noted that the casinos were largely operating out of rooms on main streets, with “zero regulatory frameworks in place”.

This lack of a structured foundation, coupled with a volatile political climate, previously derailed the major international investments such as the proposed integrated resort by James Packer’s Crown.  ​To succeed today and ensure the sector’s long-term viability, McCamley stressed that the local authorities must change their approach. He cautioned that relying solely on revenue generation is a flawed strategy. 

The government really needs to establish a regulatory framework first, not just tax,” he stated, adding that “to succeed, you must have a strong regulatory framework and keep the bad guys out”.

​When addressing the operational side of attracting a high-value foreign clientele, McCamley emphasised a technology-centric approach over traditional paper-based auditing. Advising how boards of directors should handle high growth and compliance, he urged the operators to adopt a “tech first” mentality. 

“Tech first. Don’t go paper first. You need to put the decision-making, specifically all their online oversight and auditing, you need to rely on the technology,” he explained. 

This involves a deep understanding of payment providers, tech tracking and how to effectively control funds.

​Furthermore, McCamley highlighted a critical operational risk that often undermines the gaming operations: installing financial executives without direct gaming floor experience into senior board positions. 

He pointed out that the boards frequently place “accountants into positions”, where they have “zero experience, zero exposure to gaming floor”. 

He warned that the boards are often much more comfortable having a financial person at the helm, which can lead to a fundamental misunderstanding of the industry requirements, a misstep that has led to significant regulatory issues for major operators globally.

​Drawing comparisons to the other regional markets, McCamley provided the example of Vietnam, where strict government policies and prohibition of local players have forced the operators to rely on a volatile junket business model. This reliance previously caused major international players like MGM to back out of massive investments. 

This dynamic offers a critical takeaway for Sri Lanka: to attract sustainable foreign investment and build a world-class integrated resort ecosystem, the island must prioritise a comprehensive, tech-driven regulatory environment overseen by experienced industry professionals.