Gambling Regulations in Nepal

This article was updated on April 22, 2026.

Nepal is an Asian landlocked country bordering the Himalayas in the north. All up until 1950, Nepal was closed within its own borders, secluded from the outside world. After that, in 1955, it joined the United Nations and got its crown back, re-establishing the previous kingdom. However, there were some disputes regarding the Maoist revolt, and Nepal came to a democratic republic after all. Because of its isolation, Nepal is now in a tough spot for any kind of development. Today, it belongs to the list of the least developed countries in the world. Many of the economically stable countries continue to financially aid Nepal, and it even has to stand up for its territory because of the two big guys enclosing it – China and India.

The first casino in Nepal opened in 1968, in the country’s capital. Everything was going smoothly until 2013, when the government implemented the Casino Regulations 2013, and began shutting down all the casinos whose operators were not complying with the law and not paying significant licensing fees. Nepal’s gambling suffered through a lot over the years, there were multiple times when the casinos had to be closed and then reopened again. To add more to it, the country was hit by a devastating earthquake which shook the industry and economy too. Recently, the government has further tightened these rules through the Casino Regulation 2080 BS and the Anti-Money Laundering Directive 2025 to align with global standards. In this article we will further explore Nepal’s gambling.

Who Oversees Gambling in Nepal?

There are a couple of regulatory bodies overseeing gambling in Nepal:

The Ministry of Culture, Tourism, and Civil Aviation (MoCTCA)

This body could be seen as the primary one responsible for issuing licenses, overseeing casino activities, and making sure that the operators comply with the laws. More things that it has to take care of is implementing the laws and financial requirements, as well as standards for gambling, while at the same time prohibiting access to the residents.

The Department of Tourism

This department is an addition to the MoCTCA, and its focus is turned to the impact casinos have on the tourism field. Recently, it has taken a more active role in financial oversight, issuing strict directives for transaction monitoring and customer verification to prevent financial crimes.

The Financial Information Unit (FIU)

Focuses on anti-money laundering. It monitors casinos’ financial transactions and demands operators to report any kind of suspicious activity. Under the 2025 directives, casinos must now report any individual spending NPR 1 million or more in a single day through the GoAML system.

The Department of Money Laundering Investigation

Working alongside the FIU, this department ensures Nepal complies with the Financial Action Task Force (FATF) standards to keep the country off international “grey lists.”

Nepal Police and Local Law Enforcement

They have a job to enforce gambling laws, specifically the ones that deal with illegal gambling activities. Together with the Ministry of Home Affairs, the Nepal police fights illicit gambling and prevents crimes from happening.

The Legality of Gambling in Nepal

For locals, most of the gambling activities are prohibited. But, under strict conditions, some casinos, lotteries, and small-scale activities have the right to conduct business.

Casinos are legal but turned solely to foreigners. The locals cannot enter such establishments; only tourists who bring personal identification can enjoy the activities. New regulations require casinos to use biometric ID systems at entryways to ensure locals are excluded. Popular games include blackjack, poker, baccarat, roulette, and slot machines.

Lotteries are also legal and state-run under the Lottery Act. There are many kinds of available lotteries, such as traditional paper lotteries and digital ones. The government is currently exploring further digitalization for the Nepal State Lottery to increase accessibility and public funding.

Horse betting can be legal only in certain circumstances, but since it’s not as popular as casinos, there are no prominent horse racing tracks or events.

Card games and traditional games are permitted when played as part of a cultural festival, like the Tihar Festival.

Online gambling remains illegal and unregulated in Nepal. While there is no formal licensing framework, the government has increased its efforts to block illegal offshore betting apps that have seen a surge in users following bans in neighboring India.

Sports betting is illegal in Nepal, no matter the sport in question.

The government actively works on punishing the locals when caught red-handed. The rules for them are strict, and penalties even stricter, including significant fines and imprisonment. The government strives to preserve cultural norms and religious beliefs while protecting citizens from addiction.

The Licensing Process in Nepal

The operators need to obtain a license from the MoCTCA in order to run a legal gambling business. Under the updated Casino Regulation 2080 BS, the financial bar has been raised significantly:

• Paid-up Capital: Large casinos (table games) must have a minimum paid-up capital of NPR 300 million. Smaller electronic gaming houses require NPR 200 million.

• Location: The hotel must be a five-star resort, and the casino must be located at least 5 km away from international borders (subject to security clearance).

• Infrastructure: Operators must provide 24/7 CCTV surveillance with records kept for six months and implement strict KYC (Know Your Customer) protocols.

• CSR: Casinos are now mandated to allocate 2% of net profits to Corporate Social Responsibility projects in sectors like health and education.

The documentation required for the application includes:

• Official registration documents and a legal contract with a 5-star hotel.

• A detailed business plan and proof of previous experience in the industry.

• A plan for security measures and anti-money laundering protocols.

Let’s sum it up

The regulatory framework aspires to ensure high standards which keep everything under control. Their main goal is to protect the locals and their culture from potential negative outcomes. By implementing stricter financial reporting and biometric entry systems, Nepal is successfully separating its tradition from the tourist-focused gambling sector. While the industry is modernizing to meet international financial standards, for the local population, the doors to the casino remain firmly shut.