KATHMANDU, March 23: The government is working on revising the Casino Regulation 2081 to replace existing provisions. The Tourism Department, under the Ministry of Culture, Tourism, and Civil Aviation, had submitted the draft regulation, which was later sent to the Cabinet for approval. However, it was returned to the ministry for amendments due to disputes over a clause requiring casinos to hold at least 20 percent ownership in a hotel. The ministry has not confirmed whether the revision is solely related to this provision or if other aspects of the regulation are also under review.
Officials state that the existing 2070 regulation needed updates to align with industry developments. The proposed changes included making hotel ownership mandatory for casino operators, holding that this would enhance accountability and streamline operations. While initial discussions suggested a minimum 10 percent ownership requirement, the Cabinet did not approve it. Interestingly, officials from the tourism sector claim that the original draft did not include any hotel ownership clause, raising concerns about how this provision was introduced at a later stage.
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Stakeholders in the hotel and casino industries have expressed strong opposition to this requirement, arguing that forcing hotels to hold casino shares could complicate business relationships. Some industry representatives recall that a similar issue was resolved in the past through regulatory amendments and fear that reinstating such a rule could lead to renewed conflicts. There are also concerns that this provision might serve specific business interests by transferring financial obligations—such as royalties and licensing fees—onto hotels. Some industry insiders caution that this could place additional financial strain on well-managed casinos while benefiting select groups.
Beyond the hotel ownership clause, the new draft regulation also proposes significant financial revisions. The minimum capital requirement for mini-casinos would increase from Rs 150 million to 200 million, while for larger casinos, it would rise from Rs 250 million to 300 million. The regulation also suggests raising license fees from Rs 10 million to 15 million for mini-casinos and from Rs 20 million to 30 million for full-scale casinos. Additionally, it proposes expanding the restricted zone for casinos near international borders from 3 km to 5 km and increasing annual royalty fees.