Sri Lanka Greenlights Casino Machines, Japan Tightens Online Ad Ban in Regional Gambling Shakeup

In Sri Lanka, the Committee on Public Finance approved the importation of casino gaming machines for possible tax revenue increments. Committee member Ravi Karunanayake clarified that the move was made out of economic needs, rather than an evaluation of potential adverse effects. The government made the move after it previously prohibited bringing in the same gaming machines in times of economic hardship, as part of government efforts to control the industry. The government recently tabled the Gambling Regulatory Authority Act to regulate all gambling operations and establish stricter regulations.

In a corporate movement, Nut Road Ltd's bid for acquisition of Donaco International Ltd's outstanding shares has been cleared by an independent specialist, who has determined the bid to be "fair and reasonable" for the shareholders. Backed by Donaco's Board of Directors, the scheme is to be put to a Scheme Meeting on August 4, 2025, after approval by the Supreme Court of New South Wales. The bid is for AU$55.59 million (approximately US$35.2 million), and Nut Road is offering AU$0.045 a share—a 50% premium on the recent close. Donaco has casinos in Cambodia and Vietnam and recently retired US$8.5 million of debt as part of a refinancing plan.

In other news, China experienced a significant jump in May lottery sales, driven by an increase in sales of tickets for sports lottery. Total sales increased by 19.8 percent from a year ago to approximately ¥57 billion (about US$7.95 billion), while sports lottery jumped 26 percent. It was helped partly by a lower basis of comparison in the previous year and increasing sporting events, which drove play. Lottery revenue still supports public welfare, administrative expenses, and prizes, which reached over ¥263 billion (about US$36.8 billion) in January to May.

At the same time, Japan has passed new legislation to ban promotions of online casinos for local consumers in a bid to prevent illegal gambling. The legislation prohibits advertising materials for foreign gaming sites in the form of banners, social media, and ranking websites from reaching residents, de facto restricting access to such websites. No criminal sanctions are specified, though online businesses and social media sites can delete offending material at their discretion, sanctions to be levied within three months. This action is part of wider government action against illicit gambling, following relatively low visibility among young groups and recent celebrity scandals.

In summary, these developments across Asian countries highlight a global focus on balancing the economic and entertainment benefits of gambling with the need for regulation and player protection. As nations continue to refine their policies—ranging from banning online casino advertisements in Japan to regulating casino imports in Sri Lanka—the overarching goal remains to foster a responsible gaming environment that safeguards consumers while supporting economic development.

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