(1) The license shall automatically be canceled in the following cases:-
(a) If it is found that a license has been obtained by submitting false information,
(b) If the license is not renewed within the period under rule 13,
(c) If the royalty amount is not paid within the period according to Rule 15, (2) If Nepali citizens are allowed to enter the casino site or play in the casino contrary to Rule 18, the license may be cancelled.
(3) If a licensed company does not comply with the conditions to be followed according to this regulation, the Ministry may warn such licensed company to comply with such conditions for a specified period.
(4) If the licensed company does not comply with the conditions to be followed according to this regulation despite being warned according to sub-rule (3), the Ministry will cancel the license of such licensee.
(5) Before canceling the license in accordance with clause (a), sub-rule (2) and (4) of sub-rule (1), the Ministry shall give seven days to the licensed company to submit its clarification.
(6) The Ministry shall inform the Office of the Registrar of Companies and the Department of Industries that the license has been canceled in accordance with this rule.