It seems that 2015 might be a better year for Nepal’s gambling industry. As previously reported, back in 2014, all casino venues in the country were shut down by the local government on the grounds that they had failed to act in accordance with the new gambling regulations.
Officials from the country’s Department of Tourism stated that several local and foreign gaming operators expressed interest in re-opening casinos. They also promised to follow the new law, which was enacted on July 16, 2013. Old operators, however, seem to be worried about the considerable rise in fees and taxes that the newly introduced regulations entail.
Hong Kong-based gaming operator Silver Heritage Ltd. is expected to be given the final approval to take charge of the so-called Shangri-La Casino, which is housed at the Shangri-La Hotel & Resort.
Silver Heritage has announced that it is planning to manage the gaming venue together with a local company. Two weeks ago, the Department of Tourism issued the gambling operator a pre-approval for resuming the operations of the casino. The Hong Kong-based company stated that it is planning to invest more than US$100 million in the construction and operation of casinos and a luxurious five-star hotel in Nepal.
Delta Corp., an Indian gambling and hospitality company, also showed interest in managing a casino venue in the country. It has already registered the so-called Vegas City International business enterprise in the Nepal’s Department of Industry. However, Delta also needs to file an application for an operating license. The company is to invest about NPR3 billion in its pending project.
Local officials announced that the Everest Casino, which is housed at Hotel Everest, as well as a casino at Soaltee Hotel are also being prepared for re-launch. The companies that are to operate those were asked by the Department of Tourism to apply for a license under the new law.
Sadhu Ram Sapkota, who is currently taking the position of a joint secretary at the legal division of the Ministry of Culture, Tourism, and Civil Aviation, pointed out that he believes the local gambling industry will recover.
The official is heading a committee which is given the responsibility to prepare a special casino manual. He shared with local media that they are committed to make the opening and operation of casinos within the territory of the country much easier than it was before.
He also explained that the manual will consist of simple instructions on all the necessary procedures, as well as of information about royalty payments and taxes. The draft is to be completed within a week and then it will be submitted to the Tourism Minister, so as to be given the necessary approval.
Nepal’s gambling venues were forced to shut down due to the new law that was enacted back in July 2013. Under this new regulation, casinos were supposed to pay the amount of NPR250 million in a paid-up capital.
What is more, they were also required to pay yearly royalties of NPR40 million. However, the amount was slashed to NPR30 million, after casino operators expressed their concerns that the fees were way too high. They also complained about the fact that they were required to pay their customers’ winnings only after a deduction of 25% in windfall taxes.
Mr. Sepkota pointed out that the Department of Tourism has discussed these issues with the Finance Ministry, yet they are not likely to be revised any time soon.
Bhabishwor Aryal, general manager at Casino Royale, one of the venues that were closed down last year, commented on the new regulation as posing many difficulties to the operators. He said that the gambling venues will not be able to survive under this law.
Casino Royale has been re-opened after the local Supreme Court decided to issue an order, which allowed the venue to resume operations under the old regulation. The venue was forcefully shut down in November 2014, after the Department of Tourism stated that it was run illegally.
Although old casino operators do not seem particularly keen on the casino law, the new ones have expressed their willingness to run their gambling venues under it.
