Whereas a draft of certain rules was published as
required by sub-section (1) of section 18 of the Sikkim Casino Games (Control
and Tax) Act, 2002 (4 of 2002) dated 04.04.2006 in the Sikkim Government
Gazette, Extraordinary no. 112 dated the 25th April, 2006 inviting objection
and suggestion from all persons likely to be affected hereby before the expiry
of 45 (forty five) days from the date of publication of the Official Gazette. And whereas, no objection or suggestion were
received within the said period of 45 (forty five) days; Now, therefore, in exercise of the powers conferred
by sub-section (1) of section 18 of the Sikkim Casino Games (Control and Tax)
Act, 2002 (4 of 2002) the State Government hereby makes the following rules,
namely:- (1) These rules may be called the Sikkim Casino Games (Control and Tax)
Rules, 2007. (2) They shall come into force on the date of their publication in the
Official Gazette. In these rules; unless the context otherwise
requires:- (a) "Act" means the Sikkim Casino Games (Control and Tax) Act,
2002; (b) "Appellate Authority" means the State Government or such
authority as may be appointed by the State Government; (c) "Authorized Officer" means any person or persons appointed by
the State Government for the purpose of the Act; (d) "bailable offence" means an offence which is shown as bailable
in the first Schedule of Code of Criminal Procedure, 1973; (e) "Casino Games" means all or any games of chance in which
chance rather than skill determines the outcome; (f) "cognizable offence" means an offence which is shown as
cognizable in the first Schedule of Code of Criminal Procedure, 1973; (g) "Company" means a body corporate registered under the
provisions of the Registration of the Companies Act, Sikkim 1961; and includes
a firm or other association of individuals duly constituted. (h) "Department" means the Department of Tourism, Government of
Sikkim; (i) "Government" means the State Government of Sikkim. (j) "instruments of gaming" means and includes any article used or
intended to be used as a subject, an accessory or means of gaming, any document
used or intended to be used as a register or record or evidence of gaming, the
proceeds of any gaming, and any winnings or prizes in money or otherwise
distributed or intended to be distributed in respect of any gaming; (k) "license" means a license granted by the State Government
under the provisions of the Act for the purpose of running Casino Games; (l) "licensee" means any person/Company/Firm who has been granted
a license to install and operate Casino Games; (m) "licensed premises" shall mean and include a hotel having
infrastructural and other facilities of the standard of any 5 star hotel with
capability to establish and operate casinos games; (n) "penalty" means a fine imposed by the State Government or any
authority for the breach or contravention of any of the rules made hereunder
and on conviction before a court of competent jurisdiction. Any interested person/Company/Firms desiring to
obtain license to operate Casino Games may apply for issue of license in
Form-A. On receipt of such application, the State
Government or such officer as may be authorized in this behalf, may after
making such enquiry as may be considered necessary, by order in writing, either
grant the provisional license for five years or refuse to grant the license
without assigning any reason or reasons. On expiry of the term of license issued under the
Act, the license holder shall apply for the renewal of such license in Form-A
and on receipt of such application for renewal the State Government may at its
discretion grant or refuse to renew such license for reasons to be recorded in
writing. (1) The State Government may at any time after giving a reasonable
opportunity of being heard or after giving show-cause notice of at least one
month before in Form-'C', suspend or cancel the license on breach of one or
more of the terms and conditions prescribed in the license or for contravention
of any of the provisions of the Act, and for such suspension or cancellation of
the license the concerned authority shall record brief reasons for the action
taken. (2) On suspension or cancellation of the license, the concerned authority
shall furnish copy of the order of suspension or cancellation containing the
reasons thereof to the concerned person/Company/Firm whose license has been
suspended or cancelled. All fines imposed under the Act may be recovered in
the manner specified by section 421 of the Code of Criminal Procedure, 1973. (1) The Authorized Officer or his authorized person in writing shall have
the power of inspection of the premises without any search warrant from the
Magistrate or court of law before issuance of the certificate of registration
and entry in the register for his satisfaction at any convenient and reasonable
time. (2) The Authorized Officer shall have also the power of inspection in the
premises if the complaint is received in writing for involvement of any offence
defined under the Act without search warrant. (1) During the inspection of the premises of any Casinos, Authorized Officer
or any of the authorized person not below the rank of Under Secretary shall
enter upon the premises and seize any articles or any materials of offence as
materials of evidence for subsequent trial and if the Authorized Officer or
authorized person has found that there is any contravention and violation of
any of the provision of these rule, he shall impose the fine thereof as per the
prescribed rate provided under the Act. (2) The Authorized Officer shall keep the seized articles in safe custody or
he shall forward to the police for the next course of action as the case may
be: Provided that if no application is presented, claiming
the rightful ownership of the seized article under sub-rule (1), for recovery
of possession of such article within three (3) months from the date of seizure,
the ownership of such article shall vest with the Government. The amount so
collected shall be credited in the exchequer of the Government after duly
conducting the public auction. After the seizure of the seized articles, a copy of
the seizure memo should be supplied from whom the article was seized in Form-'E'. No cognizance shall be taken unless complaint is
received or filed by any persons against the offenders before the Authorized
Officer, and he shall have the power to take cognizance on suo-moto the
Authorized Officer has reasonable belief about the offence or of contravention
of any provision of the Act. The Authorized Officer, may, by Notification in the
Official Gazette, fix reasonable/maximum rates as the Government approves from
time to time. (1) Subject to the provision of Section 4 and 6 an appeal shall lie from
every order of the Authorized Officer under the Act to the Appellate Authority
to be appointed by the Government. (2) Every such appeal shall be preferred within 60 (sixty) days from the
date of communication of the order: (3) The appellant shall have a right to appear through a counsel and the
Authorized Officer and Department may be represented by such officer or person
or a counsel as the Government may appoint. (4) On the receipt of any such appeal, the Appellate Authority shall give
the appellant and respondent a reasonable opportunity of being heard and after
making such enquiry as it deems proper, dispose off the appeal for reason to be
recorded. (5) The proceeding before the Appellate Authority shall be completed within
four months of its institution. The Authorized Officer and Appellate Authority shall
have the powers of a Civil Court under the Code of Civil Procedure 1908 (5 of
1908) in respect of the following matters, namely:- (1) summoning and enforcing of attendance of the complaint made under this
Act and witness required in connection therewith; (2) compelling the production of any document and materials Exhibits; (3) examining witnesses on oath; and (4) summoning and examining suo-moto of any person whose evidence appears to
be material. Explanation: For the purpose of enforcing the
attendance of witnesses and other persons mentioned above, the local limits of
the jurisdiction of the prescribed authority extends to the whole of the state. If any person is found carrying on the business in
contravention of any provision of the Act and these rules, the license shall
summarily be cancelled and penal action shall be initiated against him under
the provision of the Act. Any person, desiring to obtain license under
Section 4 of the Act, shall produce the No Objection Certificate from the,
Health Department (Promotion of Food Adulteration), Energy and Power Department
and Directorate of Fire Services. (1) Any person intending to carry out the business of casino by any dealers,
hotel-keepers, under these rules shall obtain the license, as per the procedure
for obtaining license has been detailed below. (2) On receipt of an application in the prescribed form and subject to the
provision of these rules license may be issued in FORM-'B' for operating of
Casino and Casino Games, in a hotel having infrastructural and other facilities
of the standard of any 5 (five) star hotel with capability to establish and
operate casinos games. The fee in respect of trade license for operating
Casino Games under these rules, shall be Rs. 5,000/- (rupees five thousand)
along with the prescribed application made under these rules. A person shall be liable for the proceeding if
he/she defaults for payment of fine imposed by the Authorized Officer and or
for any contravention of any of the provision under the Act and rules. The
Authorized Officer or his authorized person may also proceed with the
institution of the provision of Criminal Procedural Code, 1973 and/or may file
complaint before the Police station for registration of the criminal case
against the offender. The Authorized Officer or his authorized person may
hold an enquiry under the Act at the place of his official Headquarter or at
the place where the offence was detected/occurred. The fine imposed by the Authorized Officer shall be
payable within a period of one month failing which the fine may be realized in
the manner provided under the Code of Criminal Procedure, 1973 for levy of
fines. No Court shall entertain any complaint and take
cognizance of any offence unless a written complaint is filed by Authorized
Officer or his authorized person or police not below the rank of Police
Inspector before a Judicial Magistrate of First Class. The Authorized Officer or his authorized person
shall have the same power as that of the police in respect of conducting
enquiries with regard to any offence under the Act. Where any person is convicted or fined for contravention
of any provision of these rules such articles, items, shall be forfeited to the
Government. Notwithstanding anything contained in the other
provision of the Act and rules the authorized officer, where any violation or
contravention of any provisions of the Act is believed to have been committed,
such authorized officer may, whether or not prosecution is instituted for
commission of such offence, order confiscation of property so seized from the
premises of the license. No order of confiscation of any property under
rules 25 shall be made except after serving a notice in writing to the person
or licensee from whom it is seized and reasonable opportunity of hearing is
given, if any. All notices or Orders issued under the foregoing
rules, shall be sent by registered post to the person registered under the Act
as shown in the application form and shall such notices or Orders, as the case
may be shall be deemed to have been validly communicated when the notice is
duly received by the addressee. (1) Every licensee shall maintain the register and other account books and
statement of every day with the following information, duly painted, namely:- (i) Name of licensee ............... (ii) Location (iii) Name of the Hotel Keeper, premises/building etc who run the business of
casino. (iv) Name of the participants (v) Address of the participants (vi) No. of participants (vii) No. of stakes taken (viii) Total amount (2) Assessment of tax (3) Every licensee shall maintain the following books and registers,
approved by the Authorized Officer, namely:- (i) Complaint/suggestion book to be kept at the reception counter. (ii) Participants/visitor register in the form at Annexure 'D'. (iii) Bill book duly numbered in duplicate; and (iv) Receipt book duly numbered in duplicate for receipt of payments/advance. (4) The license shall not allow the entry of the participants/guest/tourist
in the hotel room unless his particulars are entered in the guest registration
register. (5) The licensee also shall not allow entry of the
participants/guests/tourists under the age of 18 years or employ in the casino
or otherwise allow to take part in the organization or exhibition of such
casino game. (6) Individual admission fee of Rs. 1500/- (Rupees fifteen hundred) only
shall be charged by the licensee to participants/guests/tourists for entry in
the casino. (7) The casino centre may be kept open 24 hours of the day. (8) "licensed premises" shall mean and include a hotel having
infrastructural and other facilities of the standard of any 5 star hotel with
capability to establish and operate casinos games; (9) The licensee may exhibit and advertise such casino centre by means of
common hoardings/newspaper advertisement/pamphlets/brochures/magazine
advertisements/audio visual advertisements, in or outside the licensed
premises. (10) License may decide at his own discretion whatever may deem fit for his
business to extend credit facilities to the participants of casino and casino
games. The Government, if it deems fit expedient and
necessary to do so, may by Notification, to be published in the Official
Gazette make amendments/repeals to the provisions of these rules.SIKKIM CASINO GAMES (CONTROL AND
TAX) RULES, 2007
PREAMBLE