Casino Operators Demand Classification Based on Gaming Area Size

Kathmandu. Mini casino operators have demanded that casinos be classified based on the area of their gaming space. The demand was made by the operators during discussions on the Tourism Bill, 2081, at a meeting of the International Relations and Tourism Committee. Mini casino operator Kishor Silwal emphasized the need to determine royalty based on classification by area, suggesting that areas up to 7,000 sq ft be considered mini casinos and those between 7,000 and 15,000 sq ft be considered large casinos. He proposed that casinos with more than 15,000 sq ft should be placed in a separate category and royalty should be collected according to the financial act. He also demanded that renewal certificates be issued within 30 days of submitting the application with documents and that operators be given a chance to explain before any action is taken. He stated that operators unable to meet the criteria should be given five years to upgrade their hotel standards. "The current provision that prohibits the use of Nepali currency in casinos should be abolished or amended," Silwal said, adding, "Arrangements should be made for transactions in Nepali currency transparently through the banking system." He clarified that the law should not discourage the business. Another casino operator, Chiranjivi Acharya, claimed that problems have arisen due to the lack of a specific, concrete law regarding casinos in Nepal. He mentioned that many casinos were on the verge of closure after the 2070 BS (2013 AD) regulations set strict criteria. He stressed the need to address the issue of significant royalty arrears in the casino sector during the law-making process. He stated that recovering arrears from casinos operated by Nepal Recreation Centre in the past has been problematic as the operators are not in Nepal. He also informed that some currently operating casinos have disputes regarding royalty and renewal. "Royalty must be paid regularly according to the financial act," Acharya said, "but if the government brings a specific financial plan or a discount scheme to collect fines and royalties, a large amount can be recovered." He urged that such provisions be included in the tourism act itself. Similarly, mini casino operator Durgadatta Dhakal stated that royalty determination should not disadvantage small casinos. Currently, a royalty of Rs 30 million annually is set for 'Class B' casinos with up to 4,000 sq ft and Rs 55 million for 'Class A' casinos. He complained that classifying casinos between 7,000 and 15,000 sq ft at the same rate imposes a greater financial burden on smaller ones. He demanded that the limit for 'Class B' casinos be set at 7,000 sq ft. "Previously, small casinos could operate up to four games using modern machines," Dhakal said, "but after the financial act of 2073/74 BS (2016/17 AD), it was limited to only one game, which has harmed small operators." He demanded that the facilities provided to old operators remain the same and that the provisions related to royalty in the financial act be amended. The operators urged the committee to include the issues they raised in the tourism bill and create investment-friendly and practical legal provisions.