Govt to shut down Casino Royal

KATHMANDU, Nov 16

The government will shut down Casino Royal operated by Yak and Yeti Hotel at Durbar Marga with the Ministry of Culture, Tourism and Civil Aviation writing to the Home Ministry on Friday to that regard stating that it is being operated violating Casino Regulation 2013. Royal was the only casino among the 10 casinos in Nepal to be operating before Dashain.

The government had shut down all the casinos since May stating they were not operating as per the new regulation and refusing to clear accumulated dues. Though all 10 casinos at five-star hotels were shut down by the government Royal had reopened on September 19 after the Supreme Court issued an interim order in the name of the government to not obstruct its operation. Casino Mahjong (at Soaltee), Shangrila, Star (at Hyatt), Anna (at Annapurna), Everest, Venus (at Malla), and Rad (at Radisson) in Kathmandu Valley, and Fulbari and Grand in Pokhara are still closed.

Royal had already paid Rs 25.47 million in royalty for the fiscal year 2069/70 but the government had still closed it stating that it had not registered as per the new regulation even after clearing dues. Promoter Manoj Subedi had moved the court making the Office of the Prime Minister and Council of Ministers, Tourism Ministry and Home Ministry as defendants.

Every casino has to pay Rs 355 million for renewal as per the new Casino Regulation issued on July 23, 2013. The casinos also have to pay a royalty of Rs 40 million a year from the fiscal year 2070/71 as per the new regulation. It was Rs 20 million earlier. Similarly, each casino must have paid-up capital of Rs 250 million for operation at five-star hotels, keep bank guarantee of Rs 40 million, and pay license fee of Rs 20 million and application fee of Rs 500,000. The government has also been preparing to amend the new regulation to reduce fees by almost 50 percent after dispute about the high fees.

The casinos and mini-casinos have to clear accumulated dues of Rs 670 million. Royalty and fine for the current fiscal year amount to Rs 416 million. A fine of Rs 12 million is levied on royalty fee of Rs 400 million. The government had shut down the casinos in May after they refused to renew despite repeated extensions of deadline by the government.