Thursday, July 4, 2019

Government relaxes location requirement for casinos

Amending a clause in the Casino Regulation 2013, the government has relaxed location requirements for casinos and electronic gaming operation along international borders.
A cabinet meeting – on June 27 – has decided to allow casinos and electronic gaming houses to operate up to a distance of 3 km from the international border. Under the original clause, casinos and electronic gaming houses had to be at least 5 km away from the international border.
A number of operators in Kakarbhitta, Biratnagar, Birgunj, Nepalgunj and Dhangadhi had raised concern over the restrictions, according to the spokesperson of the Tourism Ministry Ghanshyam Upadhyaya. “The government has shown flexibility by allowing casinos to operate at a distance of up to 3 km from international borders in the context of the upcoming Visit Nepal Year 2020 campaign.”
Currently, there are some five-star hotels under construction at the Nepal-India border points. “But the investors have been raising concern over the location requirement in the Casino Regulation 2013,” he said, clarifying the need to amend the Regulation.
The Department of Tourism – that issues casino and electronic gaming licences – had proposed allowing casinos to be set up at international border points with no minimum distance. The department – apart from amending the casino regulation – has been working on preparing a new Casino Act along with the Tourism Act.
Currently casinos are governed by the Casino Regulation 2013. The government felt it necessary to pass a separate law to bring the existing casinos into line as many of them have been operating without paying taxes and royalties on the strength of the Supreme Court’s interim orders. The department said that casino royalty irregularities currently amount to Rs1.25 billion. In 2013, the Tourism Ministry scrapped the licences of casinos defaulting on royalties as per the Casino Regulation 2013.
The government formed the Casino Act to streamline the industry and encourage new global players to enter Nepal amid expectations of a boom in the gaming industry with the ongoing development of nearly a dozen five-star hotels across the country.

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