MoCTCA had drafted the bylaws after the Public Accounts Committee (PAC) of parliament in November 2010 asked the government to come up with specific law to better manage and regulate the casinos and electronic gaming.[break]
In the draft bylaws, MoCTCA had proposed to open the casinos to ´high taxpaying Nepalis´, which was a major departure from the existing provision that restricts Nepali nationals from casino gambling.
Likewise, the ministry had also proposed in the draft to continue allowing electronic gaming and to welcome the opening of new electronic gaming outlets, along with clear legal provisions for governing them, something which has been lacking so far.
However, the draft came in for strong criticism from the Ministry of Finance (MoF) and the Ministry of Law and Justice (MoLJ). These two ministries opposed the proposal to open casinos to Nepali citizens irrespective of their income and social status.
The two ministries forwarded their comments to MoCTCA some three months ago, suggesting reworking of the draft and its forwarding to the cabinet for approval. But MoCTCA has neither revised the draft nor forwarded it to the cabinet so far.
“We feel that the thinking at MoF and MoLJ is traditional and not practical. Moreover, our point is that in suggesting change outright in the line taken in the draft, they have exceeded their authority,” said a highly placed MoCTCA source.
In its draft bylaws, MoTCCA stated that the government will allow gaming in the casinos by taxpayers having an annual turnover of Rs 250 million or more. But it has provisioned that casino operators would need to set up a separate entrance for them. It also proposed entry fees for affluent Nepalis at Rs 5,000 per day.
MoF and MoLJ officials, on the other hand, argue that opening the casinos to high-income groups and giving continuity to electronic gaming would be against the spirit that the state should treat all citizens equally.
“Besides, we feel that Nepali society is not yet that advanced. Opening casinos for Nepalis will only create social anomalies and complicate the task of monitoring them,” said a senior MoF official.
Differences of opinion among the ministries has, meanwhile, affected the enactment of much-needed law. The PAC had sought the formulation of law as the absence of clear legal provisions meant that casino operators were easily shirking their responsibilities and refraining from paying their taxes on time, among other things.
As a result, the government has not yet realized outstanding royalties of around Rs 320 million from four casinos despite repeated calls to pay up. “Sadly, the differences have delayed the formulation of law that would have paved the way for better management and smoother operation of the casinos,” said a source.
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