THE government will keep casinos in a tighter grip as per the new Casino Regulation endorsed by the Cabinet on July 11. The strict measures reflect its policy to clamp down on casinos habitually defaulting on government taxes and disregarding the rule barring Nepalis from entry. According to the Casino Regulation 2013 governing casinos and electronic gaming (mini casinos), only foreign passport holders may play at the casinos in five-star hotels. Nepalis are not even allowed to enter the casinos, according to the new regulation. Another strict measure the government has adopted is related to the operation of gaming houses and payment of royalty. The Financial Bill 2013-14 has doubled the existing royalty amount to be paid to the government by the casinos and electronic gaming houses. Under the bill, a casino is now required to pay Rs 40 million as annual royalty fee to the government from Rs 20 million earlier. For electronic gaming, the annual royalty fee has been fixed at Rs 30 million. Besides, operators must deposit the royalty amount equivalent to one year’s royalty fee at the Tourism Ministry as bank guarantee. “If Nepalis are found playing or entering the casino, the government will seize the deposited amount,” said a senior official of the Tourism Ministry. The royalty should be paid to the ministry, which has been given administrator rights, within two months of the start of the new fiscal year. “We are in the process of publishing the regulation in the Nepal Gazette soon,” said Purna Chandra Bhattarai, joint secretary at the Industry Division of the Tourism Ministry. “As there was no specific law on casinos earlier, the new regulation will bring these gaming houses into the legal net and enhance social safeguards.” Earlier, the casinos used to be governed by the Gambling Act 1963. Among other measures, only five-star hotels or resorts are allowed to operate casinos. The government has enforced tighter measures for electronic gaming. As per the new regulation, only four-star properties will be allowed to operate electronic gaming or mini casinos. Ministry officials said that a number of such operators in Kakkarbhitta, Biratnagar, Birgunj, Nepalgunj and Dhangadhi will have to shut down their gaming houses after the regulation is officially enforced. Casinos should not be located within a 5-km distance of international border points and they should not be operated in the periphery of religious sites, according to the regulation. An expert committee will be formed under the Tourism Ministry which will be entrusted with field supervision, monitoring and inquiry task of the casinos and electronic gaming houses, the regulation said. A paid-up capital of at least Rs 250 million is required for the operation of casinos while the capital for electronic gaming has been fixed at Rs 150 million. Casino and electronic gaming operators are required to pay an application fee of Rs 500,000 and Rs 200,000 respectively. The new regulation says that operators need to pay Rs 20 million to obtain a casino operating license while the fee for electronic gaming is Rs 10 million. Operators need to renew their licenses annually by paying 50 percent of the operating license fee. Casinos can be operated in joint investment with foreign companies, the regulation says. Operators must set a limit for chips or gaming. Operators must pay the client after windfall tax is levied on them. The operators should allocate 2 percent of their profits to corporate social responsibility. There are 10 casinos in the country, eight in Kathmandu and two in Pokhara.
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