Issuing a public notice on Wednesday, MoCTCA requested all the casinos to renew their operating license and clear all outstanding dues within the given timeframe.[break]
The new Casino Regulations 2013, which the government issued on July 11, requires all casino operators to renew their licenses. However, none of them has done so, according to Purna Chandra Bhattarai, chief of Tourism Industry Division.
"If the casinos do not renew their license as per the new regulation, the will automatically lose their licenses. We have already given them four months to comply with the new regulations," Bhattarai said.
There are 10 casinos in the country - eight in Kathmandu and two in Pokhara. However, two casinos have already shut down. Casino Pokhara Grande shut operation on July 23, saying that it was not in a position to comply with the new regulations. Similarly, Casino Shangri-La shut operations on September 28, citing strict regulations and labor problems.
Tourism ministry officials said outstanding dues of the casinos hover over Rs 550 million.
As per the new regulations, casinos in five-star hotels will have to pay Rs 40 million per year as royalty fee. They will also need to deposit equivalent amount as bank guarantee.
Similarly, they should have paid-up capital of Rs 250 million. For casinos in four-star hotels, capital requirement has been fixed at Rs 150 million. They, however, need to pay Rs 30 million a year as royalty fee.
Similarly, new casinos will have to pay Rs 500,000 as registration fee and Rs 20 million as licensing fee. They need to pay Rs 10 million as license renewal fee every year.
Strict regulations mean it will be extremely difficult for casinos to stay in business. Tourism entrepreneurs say closure of casinos will affect tourist flow as casino is a major attraction for many foreign tourists visiting the country.
Meanwhile, Hotel Association of Nepal (HAN) has asked the government to show flexibility and create the environment for casinos to stay in business.
"Our delegation recently asked the government to be flexible and be serious toward problem of hoteliers that have investment millions of rupees on casinos," Madhav Om Shrestha, executive director of HAN, said. "It would be difficult for the casinos to comply with the new regulations."
Related story
Tourism department gives five-day ultimatum to three casinos to...
