The casino at City of Dreams Sri Lanka, to be managed by Melco Resorts & Entertainment Ltd, is due to open “in August”. That is according to a statement by John Keells Holdings Plc, the casino group’s local partner on the project in Sri Lanka’s capital, Colombo.
Krishan Balendra, John Keells’ chairperson, said in its annual report dated May 27: “The completion of the remaining elements of the City of Dreams Sri Lanka integrated resort project is progressing well, with the fit-out and finishing works relating to the 113-key Nuwa hotel and the casino near complete for its planned opening in August 2025.”
GGRAsia has approached Melco Resorts, asking for confirmation of the casino launch date.
Melco Resorts will also manage the Nuwa hotel at the Colombo complex (pictured in a file photo). Nuwa is a brand that already features at the group’s City of Dreams property in Macau, and at the City of Dreams Manila casino complex, which the casino brand manages in the Philippine capital.
According to John Keells’ annual report, Nuwa at City of Dreams Sri Lanka will be on the top five floors of the hotel tower at the resort, with “dedicated access to the casino”. The latter will have 180,000 square feet (circa 16,725 sq. metres) available for gaming operations.
John Keells already manages a 687-key hotel called Cinnamon Life, that opened on October 15 at the new City of Dreams Sri Lanka complex. The site also has a retail mall with 149,000 sq. feet of rentable space, that will be managed by the Sri Lankan firm.
Mr Balendra stated in his company’s annual report regarding the casino: “Over the next few months, gaming equipment will be installed, ensuring operational readiness.”
The report didn’t mention specifics on table versus electronic game inventory.
The chairperson nonetheless stated: “The recruitment and training of staff for the Nuwa hotel and casino is progressing well with many key positions already onboarded.”
EBITDA share model
The local partner’s boss also observed: “The commitment by Melco [Resorts] to invest US$125 million, one of the largest foreign investments since the economic crisis, lend their City of Dreams and Nuwa brands to the project, and come on board as a long term operator for both the casino and the Nuwa hotel, reflects not only strong confidence in the country, but is also a testament to the quality of the offering at the integrated resort.”
Banking group Morgan Stanley said in a July 2024 memo after a meeting with John Keells’ management, that Melco Resorts would be entitled to earnings before interest, taxation, depreciation and amortisation (EBITDA) generated “from the gaming space after paying John Keells 50 percent to 55 percent of EBITDA, and will then pay 30 percent to 40 percent income tax on the remainder”.
Hong Kong-listed Melco International Development Ltd, the parent of Melco Resorts, said in a March filing that the latter’s licence to run a gaming venue in Sri Lanka is valid for a “term of 20 years effective from 1 April 2024”.
The parent said its unit would pay LKR5 billion (US$16.7 million) in relation to gaming licence rights.
John Keells’ Mr Balendra noted in its annual report that the Cinnamon Life hotel’s occupancy was likely to have a “slow ramp-up till demand for conferences and foreign events gather momentum.”
He added: “The opening of the casino in August 2025 is expected to be a significant catalyst in driving occupancies.”
John Keells’ latest annual report noted that with effect from April 1 this year, corporate tax for betting and gaming entities had increased from 40 percent to 45 percent, and the gross collection levy had increased to 18 percent from 15 percent.
According to Sri Lanka’s tax agency, the Inland Revenue, the gross collection levy is applicable to any gross above LKR1 million monthly, collected by a bookmaker or gaming operator, and is payable monthly.
John Keells’ annual report also said that from April 1 a casino entrance levy applicable in that nation, had increased from US$50 to US$100.
The increase in gross collection levy and casino entrance fee, had been among plans reported in February in relation to the country’s 2025 budget proposal.
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