Friday, 18 April 2014

Posted by Unknown on 18:14 | No comments

All casinos and electronic gaming companies in the country will not be allowed to conduct businesses from Sunday. The government took a decision to this effect today, as the casinos failed to obtain new operating licences by paying due royalty fee before the deadline.

The government had previously asked seven casinos and three electronic gaming companies — also known as mini casinos — that are in operation to obtain new operating licence by tomorrow. But since tomorrow is a public holiday, it had asked them to complete all the formalities to remain in business by today.

“Since most failed to approach us till today and few that filed applications lacked documents, operating licences of all casinos and electronic gaming companies will expire on Sunday. Against this backdrop, it would be illegal for any casino or gaming company to continue carrying out their businesses from Sunday onwards,” reads a statement issued by the Ministry of Culture, Tourism and Civil Aviation, which regulates casino and gaming business in the country.

भिडिओ हेर्न तल क्लिक गर्नु होस् 

The tourism ministry has asked the Ministry of Home Affairs to monitor whether casinos and gaming companies comply with its directive from Sunday. “If they do not, it would be the responsibility of the Home Ministry to take legal action,” the statement adds.

The ministry has, however, clarified that the government’s intention behind shutting down the casinos and gaming centres was not to render over 11,000 people employed in casinos jobless.

“The ministry has been holding discussions with the Ministry of Finance on how to deal with issues related to royalty. We will continue to hold discussions with other stakeholders to make the sector more organised,” adds the statement.

Operators of casinos and gaming centres have been at loggerheads with the government since the beginning of this fiscal year after annual royalty amount for each casino and gaming company was raised to Rs 40 million and Rs 30 million, respectively. At that time the government had also directed them to pay the royalty amount in advance within two months of the beginning of the fiscal year.

Casino and gaming centre operators had declined to abide by the new provision on royalty, stating, ‘100 per cent increment in royalty for casinos and almost 600 per cent hike in royalty for gaming centres would push casino and gaming businesses to the verge of collapse’.

Then on July 22, the government came up with the first Casino Regulation in the country. Since the regulation was introduced for the first time, the government had asked all casinos and gaming companies to obtain new operating licences by paying due royalty amount of previous years and advance royalty amount for this fiscal.
भिडिओ हेर्न तल क्लिक गर्नु होस् 


Scenario so far

• Casinos had to obtain licences by November 20. But they refused to abide by government directive

• The deadline was extended thrice

• Ten casinos, including Casino Nepal, Casino Pokhara and Casino Fulbari, which have already been shut down, owed the government Rs 657.67 million in due royalty amount as of mid-July 2013

• Each of the seven casinos in operation, including Casino Mahjong which acquired Casino Nepal, has to pay another Rs 40 million in royalty amount for this fiscal

New regulation

• Minimum paid-up capital requirement for casinos— Rs 250 million

• Application fee — Rs 500,000

• Licence fee — Rs 20 million

• Licence renewal fee — Rs 10 million

Due royalty amount of casinos as of mid-July 2013

Casino Dues

Casino Nepal Rs 266.80m

Casino Fulbari (already closed) Rs 160.86m

Casino Anna Rs 152.68

Casino Royale Rs 49.50m

Casino Everest Rs 17.19m

Casino Venus Rs 3.51m

Casino Rad Cleared

Casino Tara (now Casino Star) Rs 2.96m

Casino Pokhara (already closed) Rs 827,500

Casino Shangri-La (already closed) Cleared


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