Facing a government-ordered shutdown, Nepal’s casino operators are asking for a break on tough new regulatory and financial demands.
The Casino Association of Nepal was scheduled on Monday to make its recommendations to the Tourism Ministry for amending a new law that doubles operators’ royalty payments to the treasury and prohibits casinos from operating within five kilometers of international borders.
Operators also want a provision removed that requires them to withhold tax on player winnings, and they object to a strict ban on gambling by citizens of the Himalayan kingdom. They also are challenging the government’s contention that they owe back royalties and taxes equating to more than US$6.7 million.
“We have asked the casinos to come up with written suggestions particularly focused on the legal complexity they were facing,” said a ministry official. “If their demands are genuine, the government could amend some of the clauses in the regulation.”
There are 10 casinos in the country, eight in Katmandu and two in Pokhara. They employ an estimated 3,500 workers.
