Former operators complained of onerous fees
Nepal’s casino industry, in turmoil for more than a year, may be showing signs of a revival, according to the Kathmandu Post. But troubles remain.
In 2013, the government ruled that casinos must pay annual royalties amounting to NPR40 million (more than US$400,000) or shut their doors. That’s double the former amount, says the Post. In 2014, the royalties were decreased to NPR30 million. But the country’s casinos could not pay up and were forced to close.
The regulations also require casinos to have paid-up capital of at least R250 million, and to deduct 25 percent of customer winnings as a “windfall tax” for the government.
Tourism Ministry officials say foreign and Nepali operators could reopen the casinos, but the onerous fees will remain. “Yes, we see a sign of recovery,” said Sadhu Ram Sapkota, joint secretary of the ministry’s legal division. But he added that no additional reductions are forthcoming. “A revision on these issues will not be made immediately,” he said, “as it needs high-level policy discussions.”
Sapkota said incoming operators have accepted the new regulation. “The capital requirement for casinos under the foreign direct investment is still nominal,” he said. “However, the requirement for Nepali operators can be termed high, and be reviewed.”
Bhabishwor Aryal, general manager of Casino Royale, disagrees. “Under the new regulation, casinos cannot survive,” he told the Post. “The government should give opportunity to all casinos to open with a flexible policy.” Casino Royale reopened last month after Nepal’s Supreme Court issued a stay order to let the casino operate under the old rule. Royale was forcefully closed on November 23 last year, after Tourism Ministry wrote the Ministry of Home Affairs that it was being operated illegally.
Meanwhile, Silver Heritage Ltd. of Hong Kong has been named the new operator of the Shangri-La casino in Kathmandu, and has already launched operations of its Millionaire’s Club & Casino at Shangri La Hotel in Lazimpat. The Nepalese Ministry of Culture, Tourism, and Civil Aviation will issue a special license to the company this month. The Shangri-La was previously operated by Malaysian company Star Management. It was closed in the wake of labor unrest, reported GGRAsia.
The boutique casino has 22 live table games and 40 electronic gaming machines.
Silver Heritage “has been looking to invest in the Nepali tourism and recreation industry since 2011,” SHL CEO Mike Bolsover said in a statement. “We are confident the Kathmandu development represents a huge opportunity given its proximity to India and China’s massive and growing middle class.”
Bolsover said the casino “is primarily aimed at the growing Indian, Chinese and Bangladeshi markets, and also the expatriate community living in Nepal.”
Delta Corp. of India is also interested in developing a casino in Nepal. Delta has registered a company named “Vegas City International” with the country’s Department of Industry. Delta, which runs gaming halls in Goa and Daman, plans to invest R3 billion in the project.
Government officials said Everest Casino, housed at Hotel Everest, and another casino at Soaltee Hotel is also preparing to reopen. The Tourism Department has asked them to apply for a new operating permit as per the new regulation.
