Melco Confident About City of Dreams Sri Lanka 2025 Launch
Melco International has announced that its casino venture at City of Dreams Sri Lanka is proceeding according to plan, with an opening scheduled for the third quarter of 2025. This update was provided by Lawrence Ho, chairman and CEO of the Hong Kong-listed company, in Melco's 2024 annual report submitted on Monday. Ho conveyed optimism about the project's timeline and highlighted the key role the Sri Lankan development plays in Melco's ongoing international expansion strategy.
LISTEN TO THIS ARTICLE:Situated in Colombo, the capital of Sri Lanka, City of Dreams Sri Lanka will become the nation's first integrated resort. The $1-billion project was initiated by local conglomerate John Keells Holdings Plc, while Melco Resorts & Entertainment will oversee the management of both the casino and hotel operations.
Related: City of Dreams Sri Lanka Casino Slated for Late 2025 OpeningThe company's annual report indicated that the casino's interior construction, or "fit-out," is advancing steadily. Melco Resorts is contributing $125 million toward the project, approaching it as a capital-efficient investment expected to generate strong returns. This effort also aims to extend the City of Dreams brand into new territories beyond Macau, following a model that helps reduce financial exposure when entering emerging markets.
In preparation for its Sri Lankan operations, Melco Resorts created a fully-owned subsidiary, Bluehaven Services (Private) Ltd. This entity has secured a casino license from Sri Lanka's government, valid for 20 years starting April 1, 2024. The license permits Bluehaven to run casino operations at City of Dreams Sri Lanka under regulatory frameworks established by national legislation.
As outlined by the Sri Lanka Betting and Gaming Levy Act, Bluehaven must pay an annual tax of around $1.67 million starting from the fiscal year it begins casino gaming activities. Additionally, the business will be subject to a monthly gross collection tax of 15% on total revenues. However, if a month's gross revenue does not exceed LKR1 million, the levy will not apply, providing a safeguard against low-revenue periods.
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Hundreds of Millions in New Investment Funding
Under a June 2023 agreement with Sri Lanka's Board of Investment, Bluehaven pledged to develop and operate a recreation center featuring a casino and related services, involving an investment of $100 million. According to the agreement, 20% of the funding must be sourced from equity and the remaining 80% through loan capital, all categorized as foreign direct investment into Sri Lanka.
By the end of December 2023, Melco had already injected approximately $20.2 million in equity, along with a $20 million loan, to advance Bluehaven's development and future operations. These funding contributions demonstrate Melco's strong commitment to achieving a timely opening and operational success of the project.
The development of City of Dreams Sri Lanka comes alongside major regulatory changes in the country's gaming landscape. The Sri Lankan government has recently approved a draft bill aimed at legalizing and regulating online gambling.
With cabinet approval secured, a new Gambling Regularization Authority is set to be established. This regulatory body will oversee various gambling formats, including online platforms, gaming on ships, and offshore casinos based within Colombo Port City. These developments are expected to create a more structured and transparent environment for gaming operations and could attract further international investment into Sri Lanka's gaming sector.
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