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.

Hyatt Regency resumes operations

Hyatt Regency Kathmandu resumed operations from today as the agitating workers have withdrawn their protest with immediate effect.
The stock-market listed hotel confirmed that its operations have resumed but also claimed that the workers’ act was unlawful. The protesting workers have returned to work from last evening after the Labour and Employment Office stepped in to find a feasible solution to their grievances with the management.
All Nepal Hotel, Casino and Restaurant Workers Association decided to withdraw its protest on the request of Labour and Employment Office in Kathmandu, the association said – in a press note – adding that they had started protest against the management accusing the latter of curtailing facilities of workers and ‘misbehaving’ Indian personnel working at higher management level.
The protest had affected normal operations of the five-star hotel. In the eve of Visit Nepal Year 2020, the hotel management had declared to close the hotel for indefinite period, if the protest continues. Although the workers have returned on their duties, the hotel will not take any reservation for a few more days, according to head of Human Resource Department of Hyatt Govinda Pariyar, who also accepted that the hotel received a letter from the labour office this morning only.
The association today said that all workers returned to work from yesterday evening itself even though the management has not responded to their demands. “We decided to withdraw all our protest programmes and ask all the workers to return to work after Labour and Employment Office assured us to mediate with the management toward addressing our demands,” the chairperson of the authorised trade union at the hotel Mukti Dahal said.
The hotel management has blamed the trade union for being the puppet of the people, who want to close the hotel or ever. Blaming the hotel management for wanting to grab the government land, the trade union said that they fear the protest could be used to escape from the blame.
The trade union has ben blaming the hotel management of confiscating the government share in the hotel. The government’s stake in Taragaon Regency Hotels – which owns the hotel – has now come down to around 10 per cent from nearly 40 per cent, when the hotel resumed operation in late 1990s.
Currently, there are around 400 workers employed in Hyatt Regency that has 280 rooms, including seven suites and 35 regency club rooms. Hyatt Regency Kathmandu has been serving guests in Nepal since 2000. It is one of the Nepal Stock Exchange-listed hotels in Nepal.
Though the hotel management has been claiming that the government’s share has lowered because of its failure to buy rights shares issued to all shareholders, the trade union has been claiming that the management is trying to capture the government land. The hotel management, on the other hand, blames the trade union of being puppet of some unscrupulous people, who wants to gran the land and plot it and sell as land price has appreciated over 1000 times from the 1990s, when the hotel was constructed.

Silver Heritage to expand business in Nepal

Silver Heritage Group of Australia – which is one of the prominent foreign investors in the country’s hospitality sector and has already invested over Rs 6 billion – has expressed its plan to expand its business and raise investment in Nepal.
"The improving investment environment in Nepal and the rise in both the flow of tourists and other tourism activities have motivated the company to invest further in the country," chief executive officer of Silver Heritage Group Mike Bolsover said.
The Silver Heritage Group currently has invested in the Tiger Palace Resort in Bhairahawa.
Similarly, the group has also invested in the Millionaire Club and Casino.
“We started our business in Nepal through a resort in Bhairahawa and it has been successful along with the increasing flow of both foreign and domestic tourists in recent years," he said, adding that they plan to open their second and third resorts in the far-west region, probably in Dhangadi and also in Jhapa in the eastern region soon. "The resort in the far-western region will basically target tourists from Delhi and Haryana of India."
Citing that Nepal’s strategic location between India and China has created immense tourism potential in the country, Bolsover said that his group will gradually increase investment in Nepal’s hospitality industry.
Likewise, the Silver Heritage Group, according to him, is also planning to invest in a multiplex, restaurants and night clubs in Nepal. He, however, said that Nepal still needs to enhance its air connectivity and prioritise the development of tourism infrastructure in a bid to ensure accelerated growth of the tourism and hospitality sector. "“Nepal needs to enhance the capacity of Tribhuvan International Airport as connectivity is crucial for tourism growth."

Tiger Palace casino resort hotel soft launch

The Australian Stock Exchange listed Silver Heritage Group did a soft opening – for hotel accommodation-only – of its Tiger Palace Resort in Bhairahawa.
"The development of Tiger Palace continues ahead of schedule and within the revised budgeted cost of $51.8 million and the first paying hotel guests were booked in for September 20,” said the firm in a Wednesday filing to the Australian Securities Exchange.
Work on hospitality facilities including a spa, gym and swimming pool was 'being completed over the next 10 days," the document reads, adding that the casino remains on schedule to open by November 30 and the casino operations team have begun their training programme on site at Tiger Palace in the southern plains.
The Boutique Asian casino operator and developer's 2016 annual report, published in March, described Tiger Palace as a 'five-star resort hotel' with a 100-room. "The resort would have a gaming area of 2,471 sq metres (26,600 sq feet), with 462 sq metres of that for 'high limit customers'. The casino would have 'at least' 52 tables and 200 electronic gaming machines, according to the annual report.
The new venue is near Nepal’s border with the Indian state of Uttar Pradesh, one of that country’s wealthiest measured by gross domestic product (GDP), and which does not offer legal casino gambling.
According to the report by business consultancy Global Market Advisors LLC (April 2016), casino gambling by the growing middle class of Indian nationals had the potential to generate nearly $10.2 billion annually by the year 2025 provided that the right product was close to key Indian markets.

Sauraha gets first star hotel with casino

Hotel Association Nepal (HAN) president Shyam Sundar Lal Kakshyapati today inaugurated a two-star hotel in Sauraha of Chitwan, the popular tourist destination.

Established with an investment of Rs 150 million with a mini casino, Seven Star, is expected to attract more tourists, according to the investors.“The hotel will be able to attract tourist to Sauraha,” said Kakshyapati.
Real estate entrepreneurs Madhav Duwadi and Nurdev Prasad Kandel have invested in the hotel that has 48 rooms and four suites with Jacuzzi facility, “but the hotel can accommodate around 100 people.”

Spread across 20 ropanis of land, the hotel also has a seminar hall with a capacity to accommodate 600 people.

Seven Star sells deluxe rooms with air conditioner from Rs 4,000 to Rs 5,000, whereas a suite room at Rs 10,000.

Labour Court asks Casino Mahjong not to fire employees

The Labour Court Kathmandu has asked Casino Mahjong not to fire employees who have been seeking legal remedy.

In an interlocutory order, the court has directed the casino not to take any decision regarding the fate of the employees until it gives a final verdict.

Casino Mahjong had stopped employees from entering the office on January 3, after they opposed the management's decision to lower the facilities being received by employees, said coordinator of the struggle committee Mukunda Raj Kharel.

Following the incident, employees of Casino Nepal had sued its new management, Mahjong Entertainment, claiming that it wanted them to reapply for their jobs. Around 46 staff of the casino housed at Hotel Soaltee had approached the court.

The employees have claimed that the casino owes them Rs 93.46 million in back pay, perks, provident fund and other benefits.

On November 8, the management had issued a public notice instructing employees who have served for more than 30 years to apply for new appointment.

Mahjong Entertainment has taken over the management of Casino Nepal whose licence had already been cancelled by the Public Accounts Committee (PAC) of then Constituent Assembly on March 25, 2011. The management of Nepal Recreation Centre have fled the country without paying a royalty of Rs 130 million to the government.

Lack of law hits foreign investment in casino: Hotel Soaltee

Soaltee Hotel — which has been housing Casino Nepal, the oldest casino of the country — said that it has not been able to attract foreign investment to the casino due to lack of legal provisions.
Some companies with international expertise in casinos have shown interest to invest in Casino Nepal, but lack of laws has created problems, the hotel said. "The hotel has been unable to accept proposals due to lack of legal provisions."
The hotel management also said that it has been working on to resume the service of Casino Nepal in collaboration with employees’ unions and other staff. A separate Casino Joint Action Committee has been formed to work out on the issue of reopening the casino, the hotel further added.
The hotel management and Casino Joint Action Committee have asked the government to clear the way for bringing Foreign Direct Investment (FDI), it said, adding that the former operator of the casino — Nepal Recreation Centre — had brought FDI from Hong Kong and the government should adopt the same approach to bring another operator too.
The hotel has also received the Letter of Intent to operate the casino through Nepali investors, the hotel said, adding that it has already registered its application at the concerned ministry for approval to bring Nepali operators. The hotel is optimistic that the ministry will give a go-ahead to its proposal.
Meanwhile, the hotel also said that its attention has been drawn to news regarding warnings by employees of Casino Nepal to begin operations of the casino unilaterally if Hotel Soaltee fails to operate it this week.
Employees do not have any legal right and they must take the responsibility if any untoward incident takes place, it said.

PAC directs government to close casinos as they are operating illegally

The Public Accounts Committee (PAC) today directed government to close operations of nine casinos after they failed to clear their outstanding royalty dues and renew their operating licence on time.
Out of ten casinos, nine — which have an outstanding Rs 490.18 million royalty dues also — failed to renew their licences, according to Ministry of Tourism and Civil Aviation.
The committee directs the government to close down their operation within 15 days, according to the PAC.
The only casino that renewed its licence on time was Casino Shangri-La, according to the ministry. "Casinos cannot operate their services since they have failed to follow legal provision."
Casino has to pay Rs 20 million at the beginning of fiscal year to renew their licence, according to Finance Ministry. Lawmakers also directed the concerned ministries to collect dues strictly at the earliest from those casinos. The parliamentarian also directed the Ministry of Tourism and Civil Aviation to endorse new regulation within a month.
"Regulation is a must to end irregularities," lawmakers said, asking the ministry to provide the progress report on royalty dues collection every 15 days to the committee.
The meeting also urged the concerned ministries to abide by its earlier decision, secretary at the committee Som Bahadur Thapa said. PAC had in February directed ministries concerned to shift the casinos out of the valley gradually. However, there has been no progress so far.
Currently, there are 10 casinos — Casino Royale at Hotel & Yeti, Casino Venus at Hotel Malla, Casino Rad at Hotel Radisson, Casino Grande at Hotel Pokhara Grande, Fulbari Casino at Hotel Fulbari, Casino Nepal at Hotel Soaltee, Casino Anna at Hotel de’l Annapurna, Casino Everest at Hotel Everest, Casino Tara at Hotel Hyatt and Casino Shangri-La at Hotel Shangri-La.
Of them, two casinos are in Pokhara and rest are being operated in the the valley. The operation of Casino Nepal and Casino Royale has already been halted due to labour-management dispute.


The dues
Casino Anna – Rs 129.5 million
Casino Royale – Rs 45.2 million
Casino Everest – Rs 21 million
Casino Tara – Rs 13.4 million
Casino Nepal – Rs 147.3 million
Casino Rad – Rs 20.5 million
Casino Venus – Rs 10.5 million
Casino Fulbari – Rs 80.9 million
Casino Grande – Rs 18.3 million
(Source: Finance Ministry)

Casinos operating ‘illegally’: Ministry

Most of the casinos are operating ‘illegally’, according to Ministry of Tourism and Civil Aviation (MoTCA) as they have not renewed their licences.
“Only Casino Shangri-La has renewed its licence so far,” joint secretary at the ministry Ranjan Krishna Aryal said, adding that other casinos are operating without any legal status as they have failed to renew licence according to the law.
A casino has to pay Rs 20 million at the beginning of the fiscal year to renew its licence. It can also renew the licence within the three months of the fiscal year after paying fine but no one, except Shangri-La has renewed its licence, according to the law.
“Home Ministry should close the casinos, as they are operating illegally, he said, adding that it is the jurisdiction of Home Ministry to check whether casinos are operating legally or not. “And Home Ministry should close down those casinos, which are operating illegally.”
Ministry of Tourism and Civil Aviation regulates only one casino — Casino Shangri-La — at present, since it is the only legal casino operator, he clarified.
Casinos that are in operation have breached Financial Act, according to Aryal. He also expressed his discontent over dillydallying of Home Ministry to close casinos that have not renewed their licence.
The Ministry of Tourism and Civil Aviation has already informed Home Ministry and Economic and Labour Relation Committee under Legislature Parliament about the legal status of the casinos, Aryal said.
But the ministry has not yet received any information whether Home Ministry has taken action against the illegal casinos that have failed to renew their licence or not. “If Home Ministry has not taken any action, it’s their inefficiency to enforce law and order,” he further said.
There are 10 casinos in Nepal — Casino Royale at Hotel & Yeti, Casino Venus at Hotel Malla, Casino Rad at Hotel Radisson, Casino Grande at Hotel Pokhara Grande, Fulbari Casino at Hotel Fulbari, Casino Nepal at Hotel Soaltee, Casino Anna at Hotel de’l Annapurna, Casino Everest at Hotel Everest, Casino Tara at Hotel Hyatt and Casino Shangri-La at Hotel Shangri-La. Of the total, two casinos are in Pokhara and rest are in the Kathmandu Valley.
Among them, four casinos also have Rs 326.18 million outstanding royalty dues.

PAC directs Casinos not to allow Nepalis, strictly

Public Accounts Committee (PAC) under the Legislature-Parliament today reiterated its earlier direction to revoke licences of those casinos that have not adhered to the strict ruling of the committee not to allow Nepalis in the casinos, and have not paid their dues.
The parliamentary committee also directed the concerned ministries to recover dues by auctioning casinos' property, ensure rights of staffs currently working in casinos, keep entry records of visitors and present Casino Regulation within a week before the committee.
The committee reiterating its decision of December 28, 2010 and January 27, directed Finance Ministry, Tourism Ministry and Inland Revenue Department to present the update every 15 days.
Earlier on January 27, the parliamentary committee has directed the Tourism Ministry to revoke the licence of the casinos, if they didnot pay their dues within 35 days. "However, the casinos are still operating without paying dues and allowing Nepalis in to play against the law of the land and directives of the committee," said Constituent Assembly (CA) member Dhan Raj Gurung.
After the committee's decree, some casions have cleared their dues, some have paid only a little and others have disobeyed, he said, adding that the earlier directives should be implemented immediately. "If casinos will not pay, the hotels that have been granted licence to operate casino will pay." The casinos have paid Rs 512 million after the committees decree to revoke the licence, if they donot pay their dues.
"However, some of the casino owners are out of touch disobeying the parliamentary committee," another CA member Lal Babu Pandit said, accusing them of trying to influence the politicians and bureaucracy to seek amnesty.
"If the committee does not bring them to book, government coffer will hit hard," he added.
Most of the parliamentarians showed serious concern over social security of staff, who are employed in the casinos that have not paid their dues.
"To safeguard social security of some 7,000 to 8,000 staff, the assets of those casinos -- that have not paid by the deadline -- have to be auctioned and staff be paid their salary," said CA member Narayan Dahal. "Some of the casinos have not paid their staff since four months. One staff is reportedly committed suicide yesterday as he was frustrated with the casino that did not pay his salary."
Though parliamentarians came heavily on the casinos, they opined that the tourism sector should not be discouraged as the five-star hotels that have the licence to operate casinos are paying their taxes regularly. "Casinos have to be regulated and brought to book without discouraging tourism sector," they said. The parliamentarians also thanked tourism minintry for closing mini-casinos after their order.

Casino Anna gets new investor
KATHMANDU: Casino Anna has got new investor Shivam Intex Hotel and Restaurent Pvt Ltd owned by Arun Kumar Singh and Ashok Wassan. "We have got the new company -- that has registered itself yesterday formally -- to operate Casino Anna," said Nepal Tourism, Hotel, Casino and Restaurent Workers' Union executive member Krishna Pandey. Shivam Intex Hotel and Restaurent Pvt Ltd bought 50 per cent share from Nepal Recreation Centre (NRC) that was operating the casino earlier and is brining investment from India.

Casinos paying dues, fear licence revoke

After government decree to clear dues or face action, casinos have started paying their dues.
The parliamentary Public Accounts Committee had directed the government either to collect revenue from the casinos within a month or revoke their licences.
Today was the last day of the monthlong deadline and four of the gambling houses — Casino Venus, Casino Rad, Casino Grand and Shangrila Casino — turned up at Department of Revenue Investigation to settle their dues.
However, two of the oldest casinos — Casino Nepal and Casino Anna — have sought 30 and 15 days, respectively, to clear their dues, according to DRI. According to a letter signed by Rabindra Kumar Deuja, Managing Director of Casino Nepal, it has sought one month and another signed by Tapta Bahadur Bista, General Manager of Casino Anna, it has sought 15 days. The department will decide on Sunday whether to revoke their licences or grant them some days.
Casino Nepal based at Soaltee Hotel has to clear dues pending for the last five years, whereas Casino Anna has not paid for the last four years, said DRI.
Kathmandu-based Casino Venus and Casino Rad and Pokhara-based Casino Grand paid Rs 5 million each today. Casino Tara and Casino Everest paid Rs 20 million each yesterday. Shangrilla Casino today cleared half of its dues — Rs 20 million. It had to pay Rs 40 million except fines and interest.
The PAC had directed the Ministry of Tourism and Civil Aviation to revoke the licences of eight casinos, if they failed to settle all their tax liabilities by today, prompting DRI to issue a 35-day notice on January 9 to clear their dues standing to the tune of Rs 300 million.
The country has 10 casinos: Casino Royale (Hotel & Yeti), Casino Venus (Hotel Malla), Casino Rad (Hotel Radisson), Casino Grande (Hotel Pokhara Grande), Fulbari Casino (Hotel Fulbari), Casino Nepal (Hotel Soaltee), Casino Anna (Hotel de’l Annapurna), Casino Everest (Hotel Everest), Casino Tara (Hotel Hyatt) and Casino Shangrila (Hotel Shangrila). Two casinos are in Pokhara, while the rest are being operated in the Capital.
When Casino Nepal — the first casino in Asia — began operations back in 1968, it was open only for foreigners, but the casinos lately are accused of letting Nepalis enter, which is against the law of the land.

PAC directs government to collect dues or close casinos in a month

Public Accounts Committee (PAC) of the Legislature-Parliament has directed the government to cancel registration of the casinos, if they do not clear their dues within 35 days.
The government still has to recover Rs 193.5 million from five casinos -- Casino Anna, Casino Royal, Casino Shangrila, Casino Nepal and Casino Fulbari. It has recovered Rs 77.4 million from some of the Casinos recently after a massive crackdown.
When Casino Nepal -- the first casino in Asia -- was started in 1968, it was open only to foreigners but the casinos lately are blamed of entertaining the Nepalis against the law of the land. "The Casinos have not been following the law of the land and entertainng the Nepalis," said Som Bahadur Thapa, secretary at the PAC that has directed to revoke the licence of the Casinos immediately, if they are found entertaining the Nepalis, now onwards.
The committee also blamed the Ministry of Tourism and Civil Aviation -- that issues the licence to the Casinos -- for not regularly and preperly monitoring the Casinos. Not only the Casinos, the Ministry of Tourism and Civil Aviation is also blamed for not monitoring the 475 hotels licenced by itself on either they have followed the law of the land or not.
"The Casinos have been renewed repeatedly without any proper regulation," the committee said, directing the ministry not to issue any new licence without preparing the regulation.As the hotels are issued the licence to operate Casinos, there is still a confusion over who is laible to pay tax if the Casinos won't pay.
Nepal's casino industry is considered the oldest in South Asia but lately it has been in news for all the wrong reasons like tax evasion and entertaining Nepalis.According to the ministry, the country currently has 10 casinos; Casino Royale (Hotel & Yeti), Casino Venus (Hotel The Malla), Casino Rad (Hotel Radisson), Casino Grande (Hotel Pokhara Grande), Fulbari Casino (Hotel Tha Fulbari), Casino Nepal (Hotel Soaltee), Casino Anna (Hotel De'l Annapurna), Casino Everest (Hotel Everest), Casino Tara (Hotel Hyatt) and Casino Shangrila (Hotel Shangrila).
The ministry has informed the committee that there are 10 five-star hotels including Hotel Radisson, Hotel Everest and Fulbari Resort that are under renewal process; two four-star hotels; 24 three-star hotels; 45 two-star hotels; 36 one-start hotels; 358 tourist standard hotels and resorts making it to a total of 475 licenced under the ministry.
The ministry has recently issued licence to operate mini-Casinos at Hotel Vaishali (Thamel), Hotel Ratna (Biratnagar), Hotel Grande (Pokhara), Hotel Sneha (Nepalgunj) for healthy entretainment, increase in tourist number and their stay duration, and generate employment.