HK firm set to get permit to run Shangri-La casino
KATHMANDU, JAN 18 -
The government is all set to give final approval to Hong Kong-based Silver Heritage Limited to run Shangri-La casino housed at Shangri-La Hotel & Resort.
Silver Heritage, which plans to run the gaming house in a joint venture with a Nepali company, will be issued the licence within the next two weeks, according to the Department of Tourism, under the Ministry of Culture, Tourism and Civil Aviation.
The department 10 days ago had issued a pre-approval to the company, meaning that the company be prepared to start its operation. “Currently, under the request of the department, the ministry has formed a committee that is preparing an
operation manual to run casinos in line with the new Casino Regulation,” said Tulasi Gautam, director general of the department. The operating manual, or procedure, is a written document that lists instructions, step-by-step, on how to handle casinos. “As soon as the manual is drafted, Silver Heritage will be issued the final operating authorisation,” Gautam said.
As per its proposal submitted to the department, the company plans to invest more than Rs 1billion. Silver Heritage has operations across the Asia Pacific, with equity ownership in casino licenses and licensed gaming operations. It has projects running in India, Vietnam and the Philippines.
Earlier, Malaysia-based Star Management had operated Casino Shangri-La, but was forced to permanently shut down the gaming house over labour unrest. Star had been operating the casino under a lease agreement with the hotel since December 2010.
Silver Heritage is currently the only the operator that has applied to operate a casino under the new casino regulation.
Nepal’s casinos were beaten up by the stringent new regulation that came into effect on July 16, 2013. Under the regulation, casinos are required to have a paid-up capital of at least Rs 250 million. Based on the regulation, the Financial Bill 2013-14 had doubled the royalty amount that casinos have to pay to the government. Under the bill, a casino is required to pay Rs 40 million annually. However, following casino operators’ complaints that the fees were too high to run their business, the Financial Bill 2014-15 slashed the royalty amount to Rs 30 million.
“Although operators have been complaining about the hefty royalty and the paid-up capital requirement, we have no immediate plans to amend the regulation and reduce tax structures,” said Gautam. He said the stringent regulation was introduced in a bid to streamline the operation of casinos, habitually defaulting taxes. “However, discussions are underway to reduce the paid-up capital requirement to Rs 150 million, but it will not be implemented immediately.”
Meanwhile, Everest Casino, housed at Hotel Everest, has also expressed interest to resume operations. “We have asked the operators to apply for a new operating permit as per the new regulation,” Gautam said.
Another casino in Soaltee is also preparing to reopen.
On April 19, all the casinos in Nepal were declared illegal as none of them paid their outstanding royalty dues and did not obtain operating permits as per the new regulation.
An estimated 3,500 employees were out of jobs after 10 casinos were told to shut down.
SOurce: The Kathmandu Post
