High fees still a problem for the industry
The gaming industry in Nepal continues to reopen, gradually.
Ten casinos in the South Asian country closed last April because they could not make good on new fees introduced by the government in 2013. That year, government officials ruled that casinos must pay annual royalties amounting to NPR40 million (more than US $400,000), twice what they had previously paid, according to the Kathmandu Post. Though the royalties were decreased to NPR30 million, the casinos still could not pay up.
The new regulations also required casinos to have paid-up capital of at least 250 million rupees, and to deduct 25 percent of customer winnings as a “windfall tax” for the government.
Casino Mahjong, located at the Crowne Plaza Kathmandu-Soaltee, is reportedly preparing to reopen, the Casino News Daily reported. The doors have been open at Casino Royale at the Hotel Yak and Yeti since February 1. Valley Link, which runs several casinos including Casino Rad, Casino Tara and Casino Venus, is looking to obtain a new license and expects to reopen before April. And the Millionaire’s Club and Casino at Hotel Shangri-La, run by Hong Kong-based Silver Heritage Ltd., is also getting back in business.
The casinos are not currently paying royalties at the new rate; the Nepalese Supreme Court allowed them to resume operations under the old rules until the new ones take effect. According to My Republica, casino operators are still asking the government to reduce the paid-up capital to 150 million rupees (US $2.4 million).
Any new casinos have to pay 20 million rupees (US $322,000) as a licensing fee and 500,000 rupees (US $8,000) to register. In addition, they must pay 10 million rupees (US $160,000) as a license renewal fee every year.
