Nepal’s casino regulation faces setback over hotel ownership clause

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The Nepalese government’s plan to revise the Casino Regulation 2081 has encountered a major hurdle due to a contentious clause on hotel ownership. The regulation, initially submitted by the Tourism Department under the Ministry of Culture, Tourism, and Civil Aviation, was returned by the Cabinet for amendments.

According to a report by myRepublica, the proposed changes included a requirement for casino operators to hold at least 20 percent ownership in a hotel. This provision aimed to enhance accountability and streamline operations. However, the Cabinet rejected the clause, leading to further revisions. While some officials suggested a 10 percent ownership requirement, it also failed to gain approval. Tourism sector representatives claim the original draft did not include this clause, raising concerns about its late-stage introduction.

The proposal has sparked opposition from stakeholders in the hotel and casino industries. They argue that mandating hotel ownership could complicate business relationships and transfer financial obligations, such as royalties and licensing fees, onto hotels. Some industry representatives fear that the provision could favor specific business interests while placing additional financial strain on established casinos.

Beyond the hotel ownership clause, the revised draft includes several financial changes. The minimum capital requirement for mini-casinos is set to increase from ₹150 million to ₹200 million, while full-scale casinos will see an increase from ₹250 million to ₹300 million. License fees will also rise from ₹10 million to ₹15 million for mini-casinos and from ₹20 million to ₹30 million for full-scale casinos. Additionally, the restricted zone for casinos near international borders will expand from 3 km to 5 km, and annual royalty fees will increase.

Officials emphasize that the updates are necessary to align casino regulations with industry developments. The ministry has not clarified whether further revisions will be made beyond the hotel ownership clause.

As the government continues to review the proposed regulation, casino operators and hotel stakeholders remain watchful of any new amendments that could impact their operations.

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