Supreme Court allows mini casino operations

The Supreme Court has ordered the government to allow electronic gaming clubs (mini casinos) to operate. The court has nullified the now-defunct Public Accounts Committee (PAC) directives to shut them down until a casino regulation is formulated.

A division bench of Chief Justice Khil Raj Regmi and Justice Kalyan Shrestha issued the order to this effect on Wednesday. A writ was filed by Rock International Pvt Ltd and Central Media Pvt Ltd against the PAC decision to shut down mini-casinos on March 20, 2011.  

The writ argued that the government decision to close down mini casinos, citing the need for regulations, had its impact on millions of rupees of private investors.

The PAC had on February 2, 2011 directed the Tourism Ministry to prohibit mini casinos. It had said that their operations were illegal and that the mini casinos were given licenses without consulting other ministries.

A minister-level decision of the tourism ministry had allowed the operation of the electronic gaming clubs. The issue became more controversial after the finance ministry informed the PAC that mini casinos were given licenses in 2009 without consulting other ministries. As they were entitled to pay government taxes and revenue, it was not discussed with the finance ministry.

The finance ministry had forwarded a letter to the tourism ministry, stating that the issuance of licenses unilaterally was not right. Subsequently, the tourism ministry had issued a show cause notice on February 14, 2011 to the Central Media that operates a mini casino in Hotel Ratna, Opera and Vaishali, to Rock International that operates Hotel Grande in Pokhara and Happy Hour Pvt Ltd that operates such a gambling club in Hotel Sneha, Nepalgunj.

On Wednesday, the apex court also issued a mandamus, asking the government to formulate casino regulations within six months.

“As casinos in five-star hotels were reluctant to clear government dues and royalties, the PAC vented its ire on mini casinos that were operating legally and were issued license by the tourism ministry,” the court order states.

source: The Kathmandu post,21 Feb 2013