The Casino Association of Nepal says its members cannot survive the increases in royalties and fees the government plans to impose.
Describing an industry “which is on the verge of collapse,” the association has dispatched a letter to the Ministry of Culture, Tourism and Civil Aviation asking for revisions. Of particular concern is a provision in a new financial ordinance that requires casinos to deposit 40 million Nepalese rupees (US$415,000) to secure licensing and which CAN criticized as “not rational”.
It has also asked the government to lower a new minimum capital requirement of 250 million rupees ($2.5 million) along with increases in the license and license renewal fees to NPR20 million rupees and 10 million, respectively, and an increase in the application fee to NPR500,000.
Eight casinos have not renewed their operating licences and face an early April shutdown. Combined they owe the government more than NPR650 million in back royalties and another 40 million in current royalties and at least 12 million in fines.
