As part of continued consolidation in the Nepali gambling industry, the government has publicly declared that operators need to apply for license renewal before mid-June or have their licenses withdrawn. This measure is taken within a framework of increasing measures to address compliance and keep cheques on the Casino boom in the country.
It brings a shake-up in Nepal’s casino market, which has been an important promoter of tourism in the country. Many Nepali casinos are established to target foreign customers only as gambling laws in Nepal are especially strict, and the locals are not allowed to gamble. The requirement to renew the licenses within the stated time period only emphasizes the government’s determination to keep the gambling markets under control and get rid of less-than-worthy providers.
Some insiders believe that the tough renewal pattern is probably intended to curb issues concerning money laundering, tax evasion, and other legal issues that have characterized some casinos in the past. According to authorities, the strict implementation of a deadline for imposing the desired changes will help establish a more mutually understandable relationship between those providing gambling services and consumers.
The result of this policy is expected to have a very large effect. The remaining licensees will have their licenses suspended if they are not renewed by mid-June, which will likely result in closed casinos and layoffs for workers. This has sparked a lot of activity and movement amongst casino owners and managers as they try to ensure that all their paperwork is well in order with all legal requirements of the law in this sector fulfilled to the letter.
The Nepali casino sector has had many problems in the recent past, some of which are a global pandemic that hampered international travel. While the country’s tourism sector is gradually regaining its foot, the government seems more or less ready to see the casino business playing under a set of serious guidelines.
It would not be surprising if the renewal process entails assessment of the functioning and past performance of each casino including its records of legal compliance. Licence applicants may be expected to provide evidence of compliance with the promotion of responsible gambling, prevention of money laundering as well as providing contribution to the community.
This development comes against the backdrop of some recent arrests in relation to some unlawful gambling operations in the country. Only the day before, police arrested six people in Kathmandu for speeding up unlawful online gambling and captured property equivalent to about Rs 240 million. xaf7] This is evident by its recent crackdown on unlicensed operators, where the government seeks to distinguish between legitimate casinos and gambling, on one hand, and unauthorised business, on the other.
This is especially true given that the casino license renewal date also aligns with a trend making the rounds across Asia as governments increase regulatory pressure on gambling operations. Singapore and Macau legalized casinos, but there are licensing and regulations to make sure that there is sanity in the business.
The situation is critical for Nepal as a country since stakes are higher than they appear in any other international game. The nation’s casinos are the primary attraction to the juncture which is famous for baccarat betting amongst other types of betting for tourists from other nearby country such as Indians and Chinese as betting is restricted in their respective countries. The casino industry needs to be well protected and regulated for it to contribute positively to the tourism strategy in Nepal’s development blueprint.
However, there has been stiff criticism as much as the renewal policy on commodities is strictly observed. Some of the operators have noted that the deadline is too tight, while others have complained that the renewal process is complicated. They argue that the government should subsidize the industry more, especially given that it recently faced issues because of the pandemic.
Critics of the policy also note that the realisation of such a policy could force some operators to engage in illicit practises or hide from regulation. They call for an approach that may call for compliance but also for strengthening the industry to be a major contributor to the economy.
However, government officials are still firm on their stand that the renewal date is needed to guarantee more sustainability and more credibility on Nepal casinos. They refer to other countries where lack of reasonable regulation has allowed scams and brought Regional embarrassment to the whole sector.
Much as it will be exciting to watch how the casino operators in Nepal will go through the renewal process as the mid June deadline approaches. The outcome is likely to determine the future character of gambling in the country, paving a way to either consolidation of the industry with the few but conforming companies.
The government’s stance also sends a clear message to potential investors in Nepal’s casino sector: It also indicates that the compliance with the regulations, however, is not negotiable. It could actually increase confidence in the industry more in the long term to attract more internationally reputable casino brands to get into the Nepali market.
Currently, casino operators in Nepal are struggling against time to stake their future. In the next weeks, they will collect all the necessary documents and prove that they are ready to act legally. The renewal process may quite possibly act as a dividing line between the gambling segment in Nepal that is ready and prepared to comply with the demands of the governmental regulation and that which cannot adapt to the change.
As Nepal sustains more luxury tourists, the result of this license renewal process will be keenly observed by players, investors, and regulators. It will, therefore, be up to the government to find a middle ground for the imposition of tough rules that will complement the promotion of a sustainable casino business to complement the Nepals`= economic vision in the long run.
