Casino Shangrila has shut operations, citing labor tensions and new government regulations that made it difficult for the casino operator to stay in business, according to a Nagarik daily report.
The management has pasted a notice at the casino which states that the casnio will remain closed from 2 am on September 28.
The casino situated in the premises of Hotel Shangrila in Lazimpat was operated by Malyaisan firm Gold Shore Capital. The firm had invested around Rs 700 million in the casino which was in business since 2006. It was employing 438 people.
According to the report, Gold Shore Capital has already iniitated the process to notify Department of Labor and other government agencies about its decision to close the casino.
Earlier, a unit of General Federation of Nepali Trade Unions (Gefont) at the casino, which is close to CPN-UML, had warned Daniel Kong — the promoter of Gold Shore Capital — of dire consequences during labor disputes, the daily reported.
The casnio management has proposed to provide attractive offer to pay off the employees.
The Casino Regulations, which the government issued recntly, asks casnio operators to pay the government Rs 350 million, including Rs 40 million royalty, Rs 250 million bank guarantee, deposit Rs 40 million and licensing fee Rs 20 million. Casino operators are also required to pay Rs 500,000 as application fee.
After the government issued the regulations, Casino Grande located in the premises of Pokhara Grande Hotel has alrady shut operations.