In Colombo and other Sri Lankan cities, hotels with valid hospitality licenses are reportedly hosting illegal casinos. These operations evade taxes and legal scrutiny by disguising gambling areas as VIP lounges or gaming zones for guests.
While casinos are legal under strict licensing, many of these operations lack government oversight. Tourists and locals are drawn in, often unaware of the illegality. Some venues are linked to money laundering and organized crime.
Sri Lankan regulators are conducting inspections and have proposed stricter penalties for violations. Transparency in tourism and hospitality sectors is essential to prevent abuse of licensing systems.
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