Is online gambling legal in Nepal?

No. Gambling and betting are offences under s. 125 of the Muluki Criminal Code 2074, no online licence exists, licensed casinos may not offer online games, and the Nepal Telecommunications Authority has directed internet service providers to block online gambling sites and apps.

Can Nepali citizens play in casinos?

No. Rule 13 of the Casino Rules 2082 bars Nepali citizens from playing or entering a casino, except staff and officials on duty. Players are identified on entry by passport with a valid visa, two of an Aadhaar card, voter card or ration card, or an embassy identity card.

Who licenses casinos and how many are there?

The Department of Tourism, under the Ministry of Culture, Tourism and Civil Aviation, licenses and supervises casinos under Chapter 5B of the Tourism Act 2035 and the Casino Rules 2082. Its list shows 24 casino companies renewed for fiscal year 2082/83.

What does a casino licence cost?

A large casino needs NPR 300 million of paid-up capital, a NPR 1.5 million application fee, a NPR 30 million licence fee and a NPR 15 million annual renewal fee; a machine-only casino needs NPR 200 million, NPR 1 million, NPR 15 million and NPR 7.5 million. On top, the annual royalty for 2083/84 is NPR 55 million or NPR 30 million, with security of one and a half times the royalty.

How are casino winnings taxed?

Winnings are windfall gains taxed at 25%, withheld by the casino before payment and deposited with the Inland Revenue Office the same day. Casinos pay a fixed annual royalty rather than a tax on gross gaming revenue, and betting, casino and lottery services are exempt from VAT.

Can a foreign investor own a Nepali casino?

A licensed casino company may operate through joint investment with a foreign company with Ministry approval on the Department's recommendation and under foreign investment law. Any transfer of 10% or more of the capital by a holder of 15% or more needs the Department's approval.

Sovereign state

Asia

ISO NP

Nepal: gambling regulation and licensing

Online casinoProhibited
Online sports bettingProhibited
Online pokerProhibited
iLotteryProhibited
Land-based (reference)Regulated

Regulator: Department of Tourism
Headline tax: Not yet verified
Licence required: Yes
Last verified: 24 Sept 2026

Summary

Nepal prohibits gambling and betting, with narrow exceptions: land-based casinos licensed for foreign visitors, lotteries run with government permission, and small-stake games approved by the government at public fairs and festivals.Section 125 of the Muluki Criminal Code 2074 makes it an offence to gamble or cause gambling, with up to three months in prison or a fine of up to NPR 30,000 for a first offence, and separately bans betting on the result of any game, with up to a year in prison. There is no online gambling licence. In January 2023 the Nepal Telecommunications Authority directed all internet service providers to block websites and apps offering online gambling. Casinos are licensed and supervised by the Department of Tourism under Chapter 5B of the Tourism Act 2035, inserted in 2024, and the Casino Rules 2082, in force since July 2025. A licence lasts one fiscal year, must sit in a hotel or resort of four stars or above, and needs paid-up capital of NPR 300 million for a large casino or NPR 200 million for a machine-only casino; each company may run one casino. Nepali citizens may not play or enter, and licensed casinos may not offer online games or advertise in Nepal. The Department lists 24 casino companies renewed for fiscal year 2082/83. Casinos pay a fixed annual royalty set by the Finance Act, raised for 2083/84 to NPR 55 million for a large casino and NPR 30 million for a machine-only casino, withhold 25% windfall gain tax from winnings and must spend 2% of net income on social causes. Casinos are reporting entities under the anti-money laundering law and must report transactions of NPR 1 million or more in a day to the Financial Intelligence Unit. Casinos licensed within five kilometres of the border have until April 2027 to meet new security standards or relocate.

Common pitfalls

Reading casino licensing as a sign that gambling is legal: outside a licensed casino, gambling and betting are offences for the player under s. 125 of the Criminal Code, and Nepali citizens may not play or even enter a casino. Assuming a casino licence covers online play: the Casino Rules and the Department's directions bar online games, and internet service providers must block online gambling sites. Budgeting on the old figures: the royalty is reset by each year's Finance Act and rose to NPR 55 million and NPR 30 million for 2083/84, capital requirements rose to NPR 300 million and NPR 200 million in 2025, and the border exclusion zone widened from three to five kilometres. Treating the royalty as the whole tax bill: casinos also withhold 25% windfall gain tax from winnings and must spend 2% of net income on social causes.

Key facts

Regulator: Department of Tourism (DoT)
Regulator type: Government ministry
Headline tax: Not yet verified
Licence required: Yes
Minimum age: Not yet verified
Tax base: No tax on gross gaming revenue or turnover. Casinos pay a fixed annual royalty per licence set in each year's Finance Act: for fiscal year 2083/84, NPR 55 million, or NPR 30 million where games are played only on modern machines or devices, paid 40% by the end of Poush, 70% by the end of Chaitra and the balance by the end of Asar, with a 15% surcharge for three months of delay and 30% a year after that (Finance Act 2083, s. 22). For 2082/83 the royalty was NPR 50 million and NPR 15 million (Finance Act 2082, s. 15). Company income tax applies under the Income Tax Act 2058; the casino rate was not verified.

Legal framework

Primary statutes

Muluki Criminal Code 2074 (National Penal (Code) Act 2017)
मुलुकी अपराध संहिता, २०७४
Year
2017
In force
Yes
Summary
Authenticated 16 October 2017 and in force 17 August 2018. Section 125 bars gambling and causing gambling: up to three months in prison or a fine of up to NPR 30,000 for a first offence, and up to one year and a fine of up to NPR 50,000 from the second offence, plus up to three months and NPR 10,000 for each further offence. Gambling means any game played by staking property on a contingency, including staking on another person's win or loss. Small-stake games approved by the Government of Nepal at public fairs and festivals, and lotteries approved by the authorised authority, are excluded. Instruments and property earned from gambling are forfeited. Section 125(4) to (6) bars betting on the result of any game, with up to one year in prison, a fine of up to NPR 10,000 and forfeiture of the stake.
Tourism Act 2035 (1978), Chapter 5B, casino operation
पर्यटन ऐन, २०३५, परिच्छेद ५ख
Year
1978
In force
Yes
Summary
Chapter 5B (ss. 45D to 45P, ४५घ to ४५त), inserted by the 2080 amending Act authenticated on 12 April 2024, defines a casino as a business offering tourists games staked for money, by traditional means or by modern machines or electronic devices. No one may run a casino without a Department of Tourism licence (s. 45D). An operator must form a company with the prescribed paid-up capital (s. 45E) and obtain prior approval (s. 45F). Approval is refused within five kilometres of an international border, in religiously or culturally sensitive areas, or where a director is disqualified (s. 45G), although a four-star or higher hotel meeting prescribed security standards may be approved near the border. A company may hold one casino licence (s. 45H(3)); licences run for one fiscal year and lapse if renewal is not sought 30 days before expiry (s. 45K); transfers of 10% or more of the capital by a holder of 15% or more need approval (s. 45J(5)). Operating in breach of a closure order carries a fine of NPR 10 million to 50 million and one to three years in prison for the person in charge (s. 45O). Regulation and supervision rest with the Department (s. 45M), which may cancel a licence (s. 45N).
Asset (Money) Laundering Prevention Act 2064 (2008)
सम्पत्ति शुद्धीकरण (मनी लाउन्डरिङ्ग) निवारण ऐन, २०६४
Year
2008
In force
Yes
Summary
Casino and internet casino businesses are designated non-financial businesses and reporting entities (s. 2(ढ)(1)). Customer identification is not mandatory for a casino customer transacting NPR 200,000 or less in a day (s. 7Ka(5)). The regulator may fine a casino NPR 1 million to 50 million for breaches of the Act, rules or directives (s. 7Pha). The consolidated text read runs to the 2080 amending Act.
Lottery Act 2025 (1968)
चिठ्ठा ऐन, २०२५
Year
1968
In force
Yes
Summary
No person may open, print, sell, distribute or advertise a lottery, or import one, without permission of the Government of Nepal (s. 2). Charitable lotteries must pay out 60% of sales in prizes; other lotteries must pay 75% in goods, not cash (s. 3). Breaches carry a fine of the amount claimed, up to six months in prison, or both, with forfeiture (s. 7).
Income Tax Act 2058 (2002)
आयकर ऐन, २०५८
Year
2002
In force
Yes
Summary
Windfall gain includes lottery, gift, prize and winnings (s. 2(ज१)). Tax is withheld at 25% on any payment of windfall gain (s. 88A(1)). The Finance Act 2083 amended s. 88A only to add agriculture to the fields whose national and international prizes may be exempted.

Secondary instruments

Casino Rules 2082
क्यासिनो नियमावली, २०८२
Year
2025
In force
Yes
Summary
Made under s. 56 of the Tourism Act and published in the Nepal Gazette on 2082-03-30 BS (14 July 2025), in force immediately; repeals the Casino Rules 2070 (r. 32). Sets paid-up capital of NPR 300 million for a large casino and NPR 200 million for a small (machine-only) casino (r. 3), infrastructure and fit and proper conditions including biometric entry screening and six months of CCTV footage (r. 6), fees, royalty and security (rr. 7 and 8), operating conditions including no credit to players, no advertising in Nepal and no online games (r. 12), the ban on Nepali citizens (r. 13), player records kept five years (r. 14), reporting of wins or losses above NPR 2.5 million in a business day (r. 24(3)) and a 2% corporate social responsibility spend (r. 25).
Casino Rules 2070 (repealed)
क्यासिनो नियमावली, २०७०
Year
2013
In force
No
Summary
Published in the Nepal Gazette on 2070-04-07 BS (22 July 2013) under s. 56 of the Tourism Act, and amended four times to 2076. Required a five-star hotel or deluxe resort (four stars for machine-only casinos), paid-up capital of NPR 250 million (NPR 150 million for machine-only casinos) and a location at least three kilometres from the international border, and barred Nepali citizens. Repealed by the Casino Rules 2082.
AML/CFT Directive 2082 for casinos (Department of Tourism)
सम्पत्ति शुद्धीकरण तथा आतङ्ककारी कार्यमा वित्तीय लगानी निवारण सम्बन्धमा पर्यटन विभागबाट क्यासिनो व्यवसायी (सूचक संस्था) लाई जारी गरेको निर्देशन, २०८२
Year
2025
In force
Yes
Summary
Issued under s. 7Pa(2) of the AML Act and s. 45M of the Tourism Act. Requires risk assessment, customer identification, enhanced due diligence for high-risk customers and politically exposed persons, beneficial ownership checks, threshold reports to the FIU within 15 days for transactions of NPR 1 million or more in a day and immediate suspicious transaction reports through goAML, five-year record keeping, half-yearly reports and an annual compliance audit. Sets a schedule of sanctions from written warnings to fines of up to NPR 50 million and cancellation of registration.
Guideline on risk-based on-site inspection and off-site supervision of casinos 2082
जोखिमको आधारमा क्यासिनोको स्थलगत निरीक्षण र गैर-स्थलगत सुपरीवेक्षण दिग्दर्शन, २०८२
Year
2025
In force
Yes
Summary
Issued by the Department of Tourism under a decision of the directive committee under s. 7 of the AML Act and clause 2.6 of the 2082 rapid reform action plan to exit the grey list. The Department identifies at-risk casinos from inspections, complaints, public and social media information and reporting-entity reports, and grades them high, medium or low risk.
Nepal Telecommunications Authority directive on online gambling
Year
2023
In force
Yes
Summary
Dated 2079-09-22 BS (6 January 2023). Directs all internet service providers to stop the use, operation and management in Nepal of websites, apps and online networks used for cryptocurrency, network marketing, online gambling and related financial crime, and to block access to them, with action under the Act for non-compliance.
Finance Act 2083
आर्थिक ऐन, २०८३
Year
2026
In force
Yes
Summary
Section 22 sets the annual casino royalty for fiscal year 2083/84 at NPR 55 million, or NPR 30 million for games played only on modern machines or devices, payable 40% by the end of Poush, 70% by the end of Chaitra and the balance by the end of Asar to the Department of Tourism, with a 15% surcharge for the first three months of delay and 30% a year after that. Section 27(3) waives royalty and renewal fees for periods when casinos damaged during the Gen Z movement could not operate. Section 49(3) allows a one-time regularisation and renewal for 2083/84 of casino licences not renewed, on payment of dues and a penalty of 15% of the renewal fee.

Key amendments

22 Jul 2013Casino Rules 2070 published under s. 56 of the Tourism Act 2035.
17 Aug 2018Muluki Criminal Code 2074 in force, with the gambling and betting offences in s. 125.
12 Apr 2024Amending Act 2080 authenticated: inserts Chapter 5B on casinos into the Tourism Act, making the Department of Tourism the licensing and supervisory authority, limiting each company to one casino and moving the border exclusion zone from three to five kilometres.
14 Jul 2025Casino Rules 2082 published, repealing the 2070 Rules and raising capital requirements to NPR 300 million and NPR 200 million.
14 Jul 2026Finance Act 2083 authenticated, raising the annual casino royalty from NPR 50 million to NPR 55 million, and from NPR 15 million to NPR 30 million for machine-only casinos, from fiscal year 2083/84.

Licensing

Licence required: Yes
Application window: Not yet verified
Local establishment required: Yes
Local server required: Not yet verified
Active licences: 24 (as of 17 Jul 2025)
Bank guarantee or bond: Security of one and a half times the annual royalty, in cash or as a bank guarantee valid for 14 months from a class A commercial bank in the Department's name, lodged on grant and on each renewal (Casino Rules 2082, rr. 7(8)(ग) and 8(1)(ख); Tourism Act, s. 45I).
Certification requirements: Tables, machines, coins, chips and software must meet standards set by the Department, operating procedures must be approved by it, imported machines must be declared and replacements pre-approved, and the Department sets machine payout ratios (Casino Rules 2082, rr. 15 and 19).
Barriers to entry: A casino needs a Nepali company with NPR 300 million (large) or NPR 200 million (machine-only) paid up, the written consent of a four-star or higher hotel or resort, a district police recommendation, extensive surveillance, biometric and security infrastructure, at least 150 (large) or 50 (small) Nepali employees and one casino per company. Nepali citizens may not play, so the market is limited to foreign visitors. A foreign company may invest only through joint investment with a licensed company, approved by the Ministry on the Department's recommendation and under foreign investment law (r. 21). No online licence of any kind exists.

Licence types

Large casino licence (ठूलो क्यासिनो)
Scope
Table games dealt by hand with cards, chips or coins and dealer or spinner assisted games, together with machine and electronic games, in the licensed hotel or resort premises; no online games
Term
One fiscal year (mid-July to mid-July)
Application fee
NPR 1,500,000 as of 14 Jul 2025
Annual fee
NPR 55,000,000 as of 17 Jul 2026
Fee basis
Licence fee NPR 30 million on grant (Casino Rules 2082, r. 7(8)(क)); annual royalty fixed by the Finance Act, NPR 55 million for fiscal year 2083/84 (Finance Act 2083, s. 22) against NPR 50 million for 2082/83; a fee for prior approval to form the company, NPR 10,000 under r. 4(1) (the Schedule 1 form states NPR 5,000). Minimum paid-up capital NPR 300 million (r. 3).
Renewal terms
Renewal fee NPR 15 million a year, with proof of royalty paid, security renewed, audited accounts, tax clearance, CSR spending and the hotel's current registration (r. 8); application at least 30 days before expiry (Tourism Act, s. 45K).
Small casino licence (सानो क्यासिनो)
Scope
Games played only on modern machines or electronic devices, in the licensed hotel or resort premises; no online games
Term
One fiscal year (mid-July to mid-July)
Application fee
NPR 1,000,000 as of 14 Jul 2025
Annual fee
NPR 30,000,000 as of 17 Jul 2026
Fee basis
Licence fee NPR 15 million on grant (r. 7(8)(क)); annual royalty NPR 30 million for fiscal year 2083/84 (Finance Act 2083, s. 22) against NPR 15 million for 2082/83. Minimum paid-up capital NPR 200 million (r. 3).
Renewal terms
Renewal fee NPR 7.5 million a year on the same documentary conditions as a large casino (r. 8).

Taxation

Headline GGR tax: Not yet verified
Effective date: 17 Jul 2026
Player winnings tax: Windfall gain tax of 25% on winnings (Income Tax Act 2058, ss. 2(ज१) and 88A(1)).
Withholding mechanism: The casino deducts windfall gain tax from winnings before paying the player, deposits it with the Inland Revenue Office the same day, gives the player a deduction certificate and sends details to the office (Casino Rules 2082, r. 18; Tourism Act, s. 45J(7)).
VAT treatment: Exempt: betting, casino and lottery (facilities provided for betting or gambling, and lotteries) are in Group 13 of the VAT-exempt Schedule 1 to the Value Added Tax Act 2052, as replaced by s. 55(10) of the Finance Act 2083.
Tax base: No tax on gross gaming revenue or turnover. Casinos pay a fixed annual royalty per licence set in each year's Finance Act: for fiscal year 2083/84, NPR 55 million, or NPR 30 million where games are played only on modern machines or devices, paid 40% by the end of Poush, 70% by the end of Chaitra and the balance by the end of Asar, with a 15% surcharge for three months of delay and 30% a year after that (Finance Act 2083, s. 22). For 2082/83 the royalty was NPR 50 million and NPR 15 million (Finance Act 2082, s. 15). Company income tax applies under the Income Tax Act 2058; the casino rate was not verified.

Earmarked levies

Corporate social responsibility spend: 2% of net income (Social causes such as tourism promotion, education, health, sport and environmental protection, reported with each renewal (Casino Rules 2082, r. 25))

Compliance

Minimum age: Not yet verified
National self-exclusion: Not yet verified
KYC timing: On entry for every player. Full identification and verification is required when a business relationship starts or a customer transacts more than NPR 1 million in cash in a day; for customers transacting NPR 200,000 or less in a day the casino decides whether to take details (AML/CFT Directive 2082, rr. 9 and 10; AML Act, s. 7Ka(5)).
AML regime: Asset (Money) Laundering Prevention Act 2064 and Rules 2081: casino and internet casino businesses are reporting entities (s. 2(ढ)(1)). The Department of Tourism AML/CFT Directive 2082 requires risk assessment, enhanced due diligence for high-risk customers and politically exposed persons, beneficial ownership checks, targeted financial sanctions screening, a compliance officer, five-year record keeping and an annual compliance audit. The Department also issued a risk-based supervision guideline in 2082 under Nepal's action plan to exit the grey list.
AML supervisor: Department of Tourism (regulator of casinos as reporting entities); reports go to the Financial Intelligence Unit, Nepal.
Source of funds thresholds: Threshold report to the FIU within 15 days for any customer transaction of NPR 1 million or more in a day, in one or several transactions (Directive, r. 20). Report to the Department and the FIU where a player wins or loses more than NPR 2.5 million in a business day of 24 hours from entry (Casino Rules 2082, r. 24(3)). Payments of more than NPR 200,000 in a day must go to the customer's account (Directive, r. 23(2)).
Central monitoring system: No real-time feed to the regulator is prescribed. The Department may build an integrated electronic system for the operation, regulation and monitoring of all casinos (Casino Rules 2082, r. 28); casinos must keep CCTV of all play for at least six months (r. 12(ञ)).
KYC requirements: Every player is recorded on entry against a passport with a valid Nepali visa, two of an Aadhaar card, voter identity card or ration card, or an identity card issued by the relevant embassy, and may be issued an entry card valid for one fiscal year (Casino Rules 2082, r. 14(2)). Entry and exit times are recorded and player records kept at least five years (r. 14(4) and (5)). Biometric screening by face, retina or thumb scan at entry is a licensing condition (r. 6(1)(क)(10)).
Stake limits: Each casino must set a maximum bet per play and a maximum number and value of chips or coins a player may buy, and hold cash equal to chips in issue with Nepal Rastra Bank approval (Casino Rules 2082, rr. 16 and 17).
Mandatory player messaging: A notice board at the entrance in Nepali and English must show the licence number, PAN certificate, opening hours, persons barred from entry, facilities, games offered and other player information, with a complaints box; complaints are reported to the Department half-yearly (Casino Rules 2082, r. 20).
Reporting obligations: Monthly copies of records of foreign currency exchanged and chips bought and returned to the Department (r. 24(1) and (2)); half-yearly activity reports by 7 Shrawan and 7 Magh (r. 30); player nationality report with each renewal (r. 14(6)); annual training report (r. 27); suspicious transaction reports to the FIU immediately and threshold reports within 15 days through goAML, and half-yearly AML reports to the Department within seven days of the period end (Directive, rr. 16, 20 and 21).
Game content restrictions: No online games (r. 12(थ)); only the games named in the licence, on pain of refused renewal (r. 8(5)); no play on credit or loans (r. 12(ख)); no games contrary to Nepali tradition, culture and social norms (r. 12(घ)); machine payout ratios set by the Department (r. 15); no subcontracted operation (Department directions of 2082-07-29 BS).

Advertising

Advertising permitted: No
Social media rules: The Nepal Telecommunications Authority treats websites, apps and online networks used for online gambling as illegal and asked the public to report them for blocking and blacklisting.
Penalties for breach: Breach of the Casino Rules is a ground for licence cancellation (Tourism Act, s. 45N(1)(b)); breach of the Lottery Act carries a fine, up to six months in prison, or both (s. 7).

Restrictions

Licensed casinos may not publicise or advertise to promote casino business in Nepal through audio, visual, print, electronic or any other medium (Casino Rules 2082, r. 12(ठ))
No person may print, publish, sell or distribute an advertisement for a lottery without permission of the Government of Nepal (Lottery Act 2025 (1968), s. 2(c))
Causing gambling, including by providing a place or instrument for it, is itself an offence (Muluki Criminal Code 2074, s. 125)

Payments

Credit card ban: Not yet verified
Crypto stance: Prohibited
Currency restrictions: A casino may deal in foreign currency only with permission from Nepal Rastra Bank (Casino Rules 2082, r. 23; Department directions of 2082-07-29 BS) and must record every foreign currency exchange and chip purchase and return (r. 24). Business transactions must go through accounts in the casino company's name, not personal accounts, and payments to a customer of more than NPR 200,000 in a day must be made to the customer's account (AML/CFT Directive 2082, r. 23). The Telecommunications Authority states that virtual currencies have no legal recognition as a monetary instrument in Nepal and treats cryptocurrency activity online as illegal.

Enforcement

ISP blocking: Yes
DNS blocking: Not yet verified
Payment blocking: Not yet verified
App store takedowns: Not yet verified
Administrative penalties: The Department of Tourism may close an unlicensed casino or one in breach of s. 45J at once (Tourism Act, s. 45O(1)), fine a licensee that ignores its orders NPR 2.5 million to 5 million the first time and double each time after (s. 45O(4)), cancel a licence (s. 45N) and blacklist the company for up to three years (Casino Rules 2082, r. 26). Under the AML Act a casino may be fined NPR 1 million to 50 million (s. 7Pha), with the Department's directive setting warnings, fines of up to NPR 50 million and cancellation of registration for repeated failures.
Criminal penalties: Gambling or causing gambling: up to three months in prison or a fine of up to NPR 30,000 for a first offence; up to one year and up to NPR 50,000 from the second, plus up to three months and NPR 10,000 for each later offence; betting: up to one year, a fine of up to NPR 10,000 and forfeiture (Muluki Criminal Code 2074, s. 125). Running a casino in breach of a closure order: NPR 10 million to 50 million fine and one to three years in prison for the person in charge, with forfeiture of equipment and cash (Tourism Act, s. 45O(2) and (3)). Unlicensed lotteries: fine, up to six months in prison, or both (Lottery Act, s. 7).
Operator liability: Causing gambling, including by knowingly providing a house, room, place, vehicle or any instrument for it, is an offence under s. 125 of the Criminal Code. Internet service providers must block online gambling sites and apps under the Telecommunications Authority directive, with action under the Act for non-compliance.
Player liability: The person who gambles or bets commits the offence (Criminal Code, s. 125); convictions count towards the higher penalties for repeat offences.

Notable actions

Websites, apps and online networks used for online gambling, cryptocurrency and network marketing5 Apr 2022
Telecommunications Authority public notice declaring them illegal and asking the public to report them for disabling and blacklisting
All internet service providers6 Jan 2023
Directed to block access in Nepal to websites, apps and online networks used for online gambling and related activity
All licensed casinos15 Nov 2025
Department of Tourism directions after media reports and complaints of non-compliance: full compliance with the AML/CFT directive, no foreign exchange without a Nepal Rastra Bank licence, no online games, no subcontracting, same-day withholding of windfall gain tax, with legal action for casinos found non-compliant in risk-based monitoring

Timeline

25 Oct 1968
Lottery Act 2025 authenticated, requiring government permission for any lottery
22 Jul 2013
Casino Rules 2070 published under the Tourism Act 2035
17 Aug 2018
Muluki Criminal Code 2074 in force, with the gambling and betting offences in s. 125
5 Apr 2022
Telecommunications Authority notice declaring online gambling sites and apps illegal
6 Jan 2023
Telecommunications Authority directs internet service providers to block online gambling sites and apps
12 Apr 2024
Amending Act 2080 authenticated, inserting the casino chapter into the Tourism Act
14 Jul 2025
Casino Rules 2082 published, repealing the 2070 Rules; Finance Act 2082 sets the 2082/83 royalty at NPR 50 million and NPR 15 million
15 Nov 2025
Department of Tourism directions to all casinos on AML, foreign exchange, online games and windfall tax
14 Jul 2026
Finance Act 2083 authenticated, raising the royalty to NPR 55 million and NPR 30 million for 2083/84

Outlook

Casinos licensed before the 2024 amendment that sit within five kilometres of the border must meet the new security standards by 29 Chaitra 2083 (12 April 2027) or move to a qualifying hotel beyond that distance (Casino Rules 2082, r. 10(4) and (5)), and existing licensees must reach the new paid-up capital levels by the end of Chaitra 2085, in April 2029 (r. 3(2)). The Finance Act 2083 gives unrenewed casinos a one-time route back to renewal for 2083/84 and waives royalty for casinos damaged during the Gen Z movement while they were closed. The Department of Tourism is moving to risk-based supervision of casinos under Nepal's 2082 action plan to exit the grey list. No bill to license online gambling was located.

Frequently asked questions

Is online gambling legal in Nepal?: No. Gambling and betting are offences under s. 125 of the Muluki Criminal Code 2074, no online licence exists, licensed casinos may not offer online games, and the Nepal Telecommunications Authority has directed internet service providers to block online gambling sites and apps.
Can Nepali citizens play in casinos?: No. Rule 13 of the Casino Rules 2082 bars Nepali citizens from playing or entering a casino, except staff and officials on duty. Players are identified on entry by passport with a valid visa, two of an Aadhaar card, voter card or ration card, or an embassy identity card.
Who licenses casinos and how many are there?: The Department of Tourism, under the Ministry of Culture, Tourism and Civil Aviation, licenses and supervises casinos under Chapter 5B of the Tourism Act 2035 and the Casino Rules 2082. Its list shows 24 casino companies renewed for fiscal year 2082/83.
What does a casino licence cost?: A large casino needs NPR 300 million of paid-up capital, a NPR 1.5 million application fee, a NPR 30 million licence fee and a NPR 15 million annual renewal fee; a machine-only casino needs NPR 200 million, NPR 1 million, NPR 15 million and NPR 7.5 million. On top, the annual royalty for 2083/84 is NPR 55 million or NPR 30 million, with security of one and a half times the royalty.
How are casino winnings taxed?: Winnings are windfall gains taxed at 25%, withheld by the casino before payment and deposited with the Inland Revenue Office the same day. Casinos pay a fixed annual royalty rather than a tax on gross gaming revenue, and betting, casino and lottery services are exempt from VAT.
Can a foreign investor own a Nepali casino?: A licensed casino company may operate through joint investment with a foreign company with Ministry approval on the Department's recommendation and under foreign investment law. Any transfer of 10% or more of the capital by a holder of 15% or more needs the Department's approval.

Sources

मुलुकी अपराध संहिता, २०७४ (Muluki Criminal Code 2074, consolidated to the 2080 amendments), s. 125
Nepal Law Commission (lawcommission.gov.np) (translated)
The Law Commission moved to a new website in 2026; this is the current official page for the text, consolidated through the 2080 amending Acts. The 2080 amending Act (np-aml-biz-act-2080) added s. 125A on hundi but did not change s. 125.
Tier 1Accessed 24 Sept 2026Published 16 Oct 2017
The National Penal (Code) Act, 2017 (revised English translation), ss. 1 and 125
Ministry of Law, Justice and Parliamentary Affairs, Government of Nepal (moljpa.gov.np)
The English translation was not carried over when the ministry replaced its website, so the link is the archived copy of the official file. The Nepali text is authoritative; the English translation matches it on s. 125.
Archived copy
Tier 1Accessed 24 Sept 2026Published 16 Oct 2017
क्यासिनो नियमावली, २०८२ (Casino Rules 2082), published in the Nepal Gazette on 2082-03-30 BS
Nepal Law Commission (lawcommission.gov.np) (translated)
Tier 1Accessed 24 Sept 2026Published 14 Jul 2025
क्यासिनो नियमावली, २०७० (Casino Rules 2070, as amended to the fourth amendment of 2076), repealed
Nepal Law Commission (lawcommission.gov.np) (translated)
The Law Commission moved to a new website in 2026; this is the current official page for the text. Repealed by rule 32 of the Casino Rules 2082.
Archived copy
Tier 1Accessed 24 Sept 2026Published 22 Jul 2013
सम्पत्ति शुद्धीकरण (मनी लाउण्डरिङ्ग) निवारण तथा व्यावसायिक वातावरण प्रवर्द्धन सम्बन्धी केही ऐनलाई संशोधन गर्ने ऐन, २०८० (Act amending certain Acts on money laundering prevention and business environment promotion 2080), s. 5 inserting Chapter 5B (ss. 45D to 45P) into the Tourism Act 2035; text as passed and certified by the Speaker
Federal Parliament Secretariat, House of Representatives (hr.parliament.gov.np) (translated)
Text as passed by both Houses and certified for authentication; the Law Commission consolidated Tourism Act including Chapter 5B could not be retrieved. The Casino Rules 2082 cite the same sections (ss. 45E to 45N). Sections are given in the usual English form of the Nepali lettering (45D for ४५घ through 45P for ४५त).
Tier 1Accessed 24 Sept 2026Published 12 Apr 2024
Bill status: money laundering prevention and business environment promotion amendment bill 2079 (registered 2079-10-27, passed and authenticated 2080-12-30 BS)
Federal Parliament Secretariat, House of Representatives (hr.parliament.gov.np) (translated)
Tier 2Accessed 24 Sept 2026
सम्पत्ति शुद्धीकरण (मनी लाउन्डरिङ्ग) निवारण ऐन, २०६४ (Asset (Money) Laundering Prevention Act 2064, consolidated), ss. 2(ढ)(1), 7Ka(5), 7Na, 7Pa and 7Pha
Nepal Law Commission (lawcommission.gov.np) (translated)
Tier 1Accessed 24 Sept 2026Published 28 Jan 2008
सम्पत्ति शुद्धीकरण तथा आतङ्ककारी कार्यमा वित्तीय लगानी निवारण सम्बन्धमा पर्यटन विभागबाट क्यासिनो व्यवसायी (सूचक संस्था) लाई जारी गरेको निर्देशन, २०८२ (AML/CFT Directive 2082 issued by the Department of Tourism to casinos), hosted by the Financial Intelligence Unit, Nepal Rastra Bank
Department of Tourism, Ministry of Culture, Tourism and Civil Aviation, Government of Nepal (tourismdepartment.gov.np) (translated)
Tier 1Accessed 24 Sept 2026
Department of Tourism (Hotel Section) letter to all casinos, विषय: निर्देशन सम्बन्धमा (Directions), ref. 082/083, dated 2082-07-29 BS
Department of Tourism, Ministry of Culture, Tourism and Civil Aviation, Government of Nepal (tourismdepartment.gov.np) (translated)
Tier 1Accessed 24 Sept 2026Published 15 Nov 2025
आर्थिक वर्ष २०८२/०८३ को लागि ... नवीकरण भएका क्यासिनो कम्पनीको (Casino companies renewed for fiscal year 2082/83)
Department of Tourism, Ministry of Culture, Tourism and Civil Aviation, Government of Nepal (tourismdepartment.gov.np) (translated)
Tier 1Accessed 24 Sept 2026
जोखिमको आधारमा क्यासिनोको स्थलगत निरीक्षण र गैर-स्थलगत सुपरीवेक्षण दिग्दर्शन, २०८२ (Guideline on risk-based on-site inspection and off-site supervision of casinos 2082)
Department of Tourism, Ministry of Culture, Tourism and Civil Aviation, Government of Nepal (tourismdepartment.gov.np) (translated)
Tier 1Accessed 24 Sept 2026
आर्थिक ऐन, २०८३ (Finance Act 2083), ss. 22, 27(3), 49(3) and 55(10) (VAT Act Schedule 1, Group 13); text as passed and certified by the Speaker
Federal Parliament Secretariat, House of Representatives (hr.parliament.gov.np) (translated)
The certified text leaves the day of the President's authentication blank; the authentication date 2083-03-30 BS is taken from the House of Representatives list of authenticated bills (np-hr-authenticated).
Tier 1Accessed 24 Sept 2026Published 14 Jul 2026
आर्थिक ऐन, २०८२ (Finance Act 2082), s. 15 (casino royalty for fiscal year 2082/83); text as passed and certified by the Speaker
Federal Parliament Secretariat, House of Representatives (hr.parliament.gov.np) (translated)
Tier 1Accessed 24 Sept 2026Published 14 Jul 2025
प्रमाणीकरण भएका विधेयक (Authenticated bills): Finance Bills 2082 and 2083 authenticated 2082-03-30 and 2083-03-30 BS; amendment bill 2079 authenticated 2080-12-30 BS
Federal Parliament Secretariat, House of Representatives (hr.parliament.gov.np) (translated)
Tier 2Accessed 24 Sept 2026
आयकर ऐन, २०५८ (Income Tax Act 2058, consolidated to the Finance Act 2081), s. 2(ज१) and s. 88A
Nepal Law Commission (lawcommission.gov.np) (translated)
Tier 1Accessed 24 Sept 2026Published 1 Apr 2002
Lottery Act, 2025 (1968), ss. 2, 3 and 7 (English translation)
Nepal Law Commission (lawcommission.gov.np)
The English translation was not carried over when the Law Commission replaced its website, so the link is the archived copy of the official file. The Nepali text is still published by the Law Commission; no repeal was located, but a current consolidated status could not be confirmed.
Archived copy
Tier 1Accessed 24 Sept 2026Published 25 Oct 1968
अनलाइन प्रविधि मार्फत हुने क्रिप्टोकरेन्सी, विटक्वाइन, हाइपर नेटवर्किङ्ग, अनलाईन जुवा लगायतका विषयमा नेपाल दूरसञ्चार प्राधिकरणबाट जारी गरिएको निर्देशन (NTA directive on cryptocurrency, network marketing and online gambling), dated 2079-09-22 BS
Nepal Telecommunications Authority (nta.gov.np) (translated)
Tier 1Accessed 24 Sept 2026Published 6 Jan 2023
NTA public notice asking for information on websites, apps and online networks used for cryptocurrency, network marketing, online gambling and financial crime, dated 2078-12-22 BS
Nepal Telecommunications Authority (nta.gov.np) (translated)
Tier 1Accessed 24 Sept 2026Published 5 Apr 2022