KATHMANDU, Aug 23: The government has collected more than Rs 1.25 billion in revenue from casinos. The Department of Tourism (DoT) collected Rs 1.34 billion in royalties, renewals, additional fees, and fines from casinos in the fiscal year 2023/24.
The DoT collected revenue from eight big casinos and 13 smaller (mini) casinos that use modern machines or equipment in the last fiscal year.
The DoT handles the registration and renewal of hotels, tourism businesses, and casinos. In this process, the DoT collected Rs 400 million in revenue and Rs 100 million in renewal fees from eight big casinos.
Similarly, the DoT collected Rs 195 million in revenue and Rs 65 million in renewal fees from 13 small and medium-sized casinos that operate solely with modern machines or equipment.
Currently, there are 30 casinos registered with the DoT. Among them, 13 large casinos are located in five-star hotels, while 17 mini casinos are operating in four-star hotels.
11 casinos owe Rs 3.5 billion in revenue
There are 39 casinos in total at various locations across the country. Central Media, Rock International, and Happy Hour each operate four mini casinos. Before the Casino Regulations 2070 were issued, a single license permitted the operation of up to 10 casinos.
In the fiscal year 2024/25, five casinos have not been renewed. The Ministry of Culture, Tourism, and Civil Aviation, and the DoT have not renewed three large and two small casinos.
The large casinos which have not been renewed include HSL Management on the premises of Hotel Shangri-La, Tiger Palace in Rupandehi, and Atlantic Recreation at the Annapurna Hotel, according to the DoT. The mini casinos operated by Hotel Ichchha's Smile Collection and Ratna Services at Ratna Hotel in Biratnagar have also not been renewed, said Kali Bahadur Bhujel, the DoT's director and spokesperson.
According to the current legal framework, casinos should have been renewed by mid-July. Spokesperson Bhujel said, "All operating casinos were supposed to be renewed by mid-July, but this time, the DoT did not renew those casinos that had failed to pay the fees within the specified deadline."
He stated that although all other casinos completed their renewal, five casinos could not be renewed because they did not submit the renewal fees.
The Shangri-La Hotel, it is said, is not operating HSL Management. Despite paying outstanding amounts for the Tiger Palace, they did not apply for the renewal of either casino. Similarly, Hotel Annapurna is closed. The Atlantic Recreation has not been renewed since last year. While the hotel is undergoing renovation, the casino remains closed.
Hotel Ichchha's Smile Collection and Ratna Services at Ratna Hotel, which have not been renewed, have both gone to the court. The renewal process for these casinos depends on the court's decision, according to Spokesperson Bhujel.
"Both casinos have taken the renewal issue to the court," he said. "Only if they win the case in court will their renewal take place; otherwise, they will not be renewed this year."
He stated that the DoT informed the court of this situation, and if the court's decision requires the businesses to continue, only then will the renewal take place. Otherwise, the DoT has decided not to proceed with the renewal.
According to the Financial Act 2080 BS, casino operators are required to pay 40 percent of the renewal fee by mid-January, 30 percent by mid-April, and the remaining 30 percent by mid-July. Starting this year, the government had advised all companies holding a license for casino and entertainment operations to submit their revenue by mid-July 2024. After these casinos ignored the government's warning that companies failing to submit revenue on time would have their registration canceled, the government has decided not to renew these casinos.
After the Casino Regulations 2070 were issued, those who obtained licenses were required to complete the re-registration process. It was stated that licenses for casinos not participating in the registration process would be canceled. Following this, some casinos came forward for re-registration, while others did not.
In this context, casinos such as Rock International, Happy Hour, Central Media Group, Yak & Yeti, and Casino Royal did not come forward for the registration process. They contested the matter in court. The court issued an interim order at that time, directing that the businesses should be allowed to operate without hindrance. Accordingly, Rock International, Happy Hour, and Central Media are currently operating four casinos each.
Regarding these casinos, Spokesperson Bhujel stated, "If they wish to and make the payment, we might also be positive about it. However, as of now, the DoT is taking no action."
He said, "This issue has been delayed because it is stuck in the constitutional bench of the court; otherwise, the court would have likely already made a decision. The next hearing is scheduled for August 28. Once a decision is made, the regulation will finally begin."
