M V Leela, owned by Golden Globe Hotels Pvt Ltd, would be taken over by the state government as an abandoned ship, the House was told.
"We will attach the ship under Tourism Act and would auction it as the licence has already expired," Parrikar said.
The BJP-led government has already withdrawn the powers to transfer the casino vessel from one company to another.
"Even if the ship is sold to another company, the state government will not give a casino licence to it," he added.
The CM said that the licences of two out of total six casinos (one including that of Kanda) in the state have lapsed as they have not paid the fee.
"We are not replacing these two casinos. That means the number of casinos in the state would be restricted only to four," he said.