Deadline on casino licence renewal expires today
KATHMANDU:
Casinos operating in the country only have one day left to pay the due royalty amount and renew their licences. If they fail to do so by tomorrow, their businesses will be declared illegal by the government.
Earlier, the government had asked all casinos to clear the due royalty amount and renew their operating licences within November 20. Upon request, the government had extended the deadline to March 21.
“If casinos fail to make the payment and renew licences, their businesses will be deemed illegal,” spokesperson at the Ministry of Culture, Tourism
and Civil Aviation (MoCTCA) Mohan Krishna Sapkota told The Himalayan Times, adding, “We have already notified about this to the Ministry of Home Affairs and asked it to take due action if they fail to adhere to the government’s repeated calls.”
Eight casinos in operation have failed to renew their operating licences as they have not paid the due royalty amount so far. These casinos owed the government Rs 656.84 million in due royalty amount as of mid-July. Apart from this amount, each of them also has to pay another Rs 40 million in royalty amount for this fiscal year.
The financial ordinance of this fiscal had fixed annual royalty amount of Rs 40 million for each casino. This amount had to be paid in advance to the MoCTCA within two months of the beginning of the current fiscal year. As they failed to pay the amount on time, they were slapped a fine of 15 per cent of the annual royalty amount and were asked to pay the due royalty within the next three months. After they failed to deposit this due amount at state coffers, the government had slapped
a fine of another 15 per cent of the annual royalty amount.
This means each of the casinos has to pay a fine of at least Rs 12 million for not paying the royalty of this fiscal.
Of the casinos that have not paid the due royalty, Casino Nepal (now known as Casino Mahjong) located at Crowne Plaza Kathmandu-Soaltee tops the list, with due amount standing at Rs 266.80 million as of mid-July. The casino, which obtained operating licence in September 1966, also has to pay
another Rs 40 million as royalty for this fiscal and a fine of at least Rs 12 million on this unpaid royalty.
Next in the list of highest accumulator of due royalty amount is Casino Fulbari operated by Pokhara-based The Fulbari Resort. The casino, which obtained operating licence in March 2001, owed Rs 160.86 million in due royalty amount to the government as of mid-July. Close on the heels of Casino Fulbari is Annapurna International Pvt Ltd, which operates Casino Anna, with due royalty amount standing at Rs 152.68 million.
Similarly, Casino Royale, Casino Everest, Casino Venus, Casino Rad and Casino Tara (now Casino Star) owe due royalty amount in the range of Rs 2.96 million to Rs 49.50 million.
Among others, Casino Pokhara located at Hotel Pokhara Grand, which has already been shut down, owes Rs 827,500, but another casino which folded up its business — Casino Shangrila — has cleared all its dues.
Despite repeated attempts by THT, GM of Casino Mahjong Rohit Thapa did not respond. A high-ranking official of Yak and Yeti, meanwhile, declined to comment on the issue.
Due royalty amount of casinos as of mid-July, 2013
• Casino Nepal (now Casino Mahjong) Rs 266.80m
• Casino Fulbari Rs 160.86m
• Casino Anna Rs 152.68
• Casino Royale Rs 49.50m
• Casino Everest Rs 17.19m
• Casino Venus Rs 3.51m
• Casino Rad Rs 3.33m
• Casino Tara (now Casino Star) Rs 2.96m
• Casino Pokhara (closed) Rs 827,500
Source: THT
