Govt. snubs UNP on gaming by qualifying green-era casinos for new licensing

Monday, 14 October 2013 00:00 - - {{hitsCtrl.values.hits}}

Under fire from the Opposition for promoting the gaming industry, the Government is apparently checkmating the UNP by qualifying casinos which operated during the latter’s regime for licensing under new regulations. The Daily FT learns that upcoming new regulations under the Casino Business (Regulation) Act No. 17 of 2010 are expected to stipulate that all casinos which have operated for a period of over 12 years or since 1 January 2002 and that have paid applicable levies continuously to the Department of Inland Revenue under the country’s Betting and Gaming Levy Act No. 40 of 1988 will qualify to obtain new licence. These casinos which have operated for nearly two decades qualify under what is described as Designated Area 3 with 1 and 2 designated areas for gaming identified as D.R. Wijewardena Mawatha, Colombo 10 and Glennie Street, Colombo 2. The latter two are in view of the already announced gaming inclusive integrated resorts of Aussie casino mogul James Packer’s partnership with Rank Entertainment Holdings Ltd. of Ravi Wijeratne fame and top blue chip John Keells Holdings’ (JKH) Waterfront project. Dhammika Perera’s mega integrated resort project Queensbury will be located at D.R. Wijewardena Mawatha as well. Casinos that have been operating in Designated Area 3 (MGM, Ballys, Star Dust and Bellagio) will be deemed to have been issued valid licences under the Casino Business (Regulation) Act No. 17 of 2010, from the date hereof, and are to be relocated or transferred to any party in any one of the designated areas at present or those designated areas in the future.

Foreign applicant should be in possession of a casino business in operation in a foreign country for a period of over 10 years with all statutory charges and levies paid to the relevant authorities in the respective country and should have a track record of compliance with legal and regulatory requirements elsewhere or Sri Lanka. The Government will also have a Regulatory Authority to regulate and supervise casino operations. The regulator will be tasked to safeguarding and protecting the interests of all parties and the social sectors apart from investigating into any complaints and take necessary punitive action. Upcoming regulations and the regulatory authority will be in conformity with prevalent international norms, regulations and standards, taking into reckoning the Articles of the proposed Declaration of Global Responsible Gaming. Analysts said that the latter is in addition to international operators such as Crown having to comply with global regulations on gaming industry. Crown is also listed on several stock exchanges. They also said that new regulations are likely to address some of the concerns raised over the mega push for casinos in the country, which though widely criticised by the Opposition has been welcomed by the tourism and entertainment industries. A vocal critic, UNP MP Dr. Harsha de Silva last month urged the Government to come clean on its policies on casinos with greater transparency as well as proper taxation. “A well-regulated, licensed and taxed casino industry is recommended if the Government wishes to promote casinos despite assurances to create a just and values-driven society,” Dr. de Silva told the Daily FT last month. Strategic Development Bill No. 14 will be presented to Parliament on 24 October to legalise casinos in the country and set up the legal framework. Last week the UNP Parliamentary Group unanimously decided it will vote against attempts by the Government to legalise casinos through draft legislation to be presented in Parliament on 24 October.