Kathmandu, Aug 24: The government is tightening regulations on casinos, requiring operators that want to upgrade from small to large casinos to pay additional licence fees, deposits and royalties.
It is amending the existing Casino Regulation, 2082, to impose new charges on casinos seeking to upgrade their category or expand their gaming capacity. The changes are being introduced under the authority granted by Section 56 of the Tourism Act, 2035. The Ministry of Law has already prepared the draft framework for the amendment.
Once the Casino (First Amendment) Regulation, 2083 comes into force, operators upgrading from small to large casinos will have to meet additional financial obligations.
The draft adds Rules 8A and 8B to the existing regulation. Under the proposed Rule 8A on casino upgrades, a company holding a licence to operate a small casino and seeking a large casino licence must maintain the required paid up capital and submit an application to the Department of Tourism along with the prescribed application fee.
The upgrade will be granted to the company, rather than automatically applying to the casino. After receiving an application, the department will deploy an inspection team to determine whether the company meets the required conditions and standards. A decision will be taken only after the team submits a report in the prescribed format.
If the applicant meets all legal and regulatory requirements for operating a large casino, the department will issue the upgrade licence only after the company pays any shortfall in the prescribed licence fee, royalty and security deposit.
However, if the company has already paid the renewal fee for its small casino for the current fiscal year, that amount will be deducted from the additional licence fee, royalty and security deposit required for the upgrade.
The proposed rules will also make prior approval mandatory for casinos seeking to expand their capacity by increasing the gaming floor area, number of tables or gaming equipment.
Operators must submit an application to the Department of Tourism. The department will conduct an onsite inspection and decide whether the proposed expansion meets the prescribed conditions and standards. Approval will be granted only after the operator pays the applicable capacity expansion fee.
The new rules introduce different fees depending on the type of casino and the scale of expansion.
A small casino expanding its approved gaming floor area, tables or equipment by up to 50 percent will have to pay Rs 7.5 million. Expansion exceeding 50 percent will cost Rs 15 million.
For large casinos, expansion of up to 50 percent will attract a Rs 15 million fee, while expansion exceeding 50 percent will require payment of Rs 30 million.
The draft also seeks to regulate casinos that have already expanded their capacity without obtaining prior approval. Once the amended regulation comes into force, such operators will have 90 days to submit applications to the department.
People’s News Monitoring Service
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