Nepal iGaming Market Research Report

Between India and China, Nepal has acted as a gateway to tourism in South Asia and has been attracting millions of tourists per year for its natural beauty and cultural aspects. Due to its geographical location, growing hospitality sector, and proximity to the highly populated Indian states, Nepal has evolved into a potential land-based casino tourism destination. In recent years, the online gambling sector in Nepal has seen a seismic transition due to a surge in online gambling, changing consumer perceptions, and a developing regulatory landscape. 

The government’s recent proposal to revamp casino regulation, which has included lowering barriers of entry for foreign investment and enhancing compliance, as well as understanding and addressing responsibility, has marked a new chapter for an industry that has potential both for revenue and responsible economic development. 

Additionally, the growing presence of internet gambling websites and, significantly, among the youth, presents opportunities and challenges for gambling consumers in Nepal’s rapid-fire transitional iGaming economy. In this report we will provide an analysis of the most recent trends for the Nepalese iGaming economy, including market trends, regulatory environment, competition, and outlook. 

Market Overview

Market Size and Growth

Nepal’s gaming market is growing at a robust rate, with an estimated compound annual growth rate (CAGR) of 10.7% from 2020 to 2026. The market is driven by the rising popularity of gambling activities, growing disposable incomes, and expanding internet and mobile penetration. Market estimates indicate that both the terrestrial and online segments are behind the growth, though exact revenue amounts are unknown because of the de facto unregulated state of online gambling and the prohibition of locals from lawfully run land-based casinos.

The nation’s land-based casino industry, aimed squarely at foreign visitors, has been notching steady growth in tandem with Nepal’s tourism and hospitality industries. At the same time, the internet-based wagering business—running in a juridical twilight zone—has developed with fervour, with thousands of Nepali gamblers logging onto offshore casino and betting websites. Venture capital and private equity investment, as well as emerging types of betting tech like artificial intelligence (AI) and virtual reality (VR), are also fuelling market growth.

Major types of games available

• Casino Games: Land-based casinos are filled with traditional table games (roulette, blackjack, and baccarat), slots, and poker that significantly attract visitors.
• Online Slots: Games such as “Gates of Olympus”, “Book of Dead”, and “Big Bass Bonanza” are popular with Nepalese online casino enthusiasts, featuring interesting themes and big win possibilities.
• Sports Betting: Cricket is the most widely bet-on market, followed by football, kabaddi, volleyball, swimming, and tennis. Esports betting is also becoming more popular, particularly amongst the youth.
• Lottery: Lottery games are a mainstay in both their traditional and online incarnations, although comprehensive revenue and participation data are not forthcoming.
• Others: Fantasy sports and skill games also remain popular, following broader regional trends.

Table 1: Nepal Gambling Market Snapshot

Demographics of Players

• Age: The majority of the gamblers online are under 35, with a high density of the 18–30 age group. This is driven by widespread smartphone penetration, affordable data, and online payment systems.
• Gender: The industry is still a man’s world, particularly in casino gaming and internet betting. Female involvement is slowly building up as online platforms become more accessible.
• Preferences: Younger players prefer short, interactive games like slots, esports, and fantasy sports. Classic games like roulette and poker are favourites among older, experienced players. Sports betting is a favourite across all ages, with football and cricket being the top choices.
• Urban vs. Rural: Players from urban areas have better access to land-based as well as internet gambling sites, but technology is closing the gap, allowing rural involvement in internet betting and lotteries.

Regulatory Landscape

Overview of Existing Gambling Regulations

This article was updated on April 22, 2026.

In Nepal, gambling is primarily regulated by the Casino Act 2019 and the Casino Regulation 2013, alongside the Tourism Act and the Foreign Investment and Technology Transfer Act. Under the current gambling regulations, licensed casinos in Nepal are permitted to serve foreign national players only; all Nepali citizens are strictly prohibited from gambling in any casino.

The oversight structure has been significantly bolstered recently. While the Ministry of Culture, Tourism and Civil Aviation (MoCTCA) remains the issuing authority for licenses, the Department of Tourism (DoT) now enforces a 12-point directive issued in 2025/2026. This directive mandates full compliance with the Anti-Money Laundering (AML) Act and counter-terrorist financing (CFT) standards. Furthermore, the Nepal Rastra Bank (NRB) now requires explicit permission for any foreign currency transactions within casinos and has integrated Payment Service Providers (PSPs) into a monitoring web to freeze assets linked to illicit activity.

In a major shift toward enforcement, the government under Prime Minister Balendra Shah launched a massive crackdown in March 2026, ordering the Nepal Telecommunications Authority (NTA) to block over 7,000 betting apps and websites within 24 hours, effectively shutting down the unauthorized online sector that previously operated in a grey area.

Licensing Requirements and Regulatory Bodies

The Casino licenses are provided by the Tourism Department through MoCTCA. Based on the Casino Regulation 2082 BS (initiated in early 2026), the amount required to obtain a license has been raised accordingly; therefore, only capable operators will continue to operate a casino in Nepal. The minimum amount for a full casino to have in paid-up capital is now NPR 300 million, while for electronic gaming houses, the amount is NPR 200 million.

Operators are required to establish a separate corporation and have an appropriate hotel partnership that meets certain requirements. This will be as per the Integrated Tourism Bill, which was created by the National Assembly in February of 2026 and is being considered by the House of Representatives; whereby, the hotel will be required to have a minimum of 10% of the equity in the casino operation so that the financial responsibility is assured.

Casino Licenses can be renewed on an annual basis; if the operators do not apply for renewal of their license within 60 days from the date of expiration, their license will be permanently lost.

Details on Taxation and Compliance

Nepal’s casinos operate under a strict tax and royalty regime comprising an annual fee for licenses (NPR 25 million for a full casino and NPR 10 million for electronic gaming) as well as paying 40% of their gross gaming revenue (GGR) as a royalty plus 25% of their net profit as corporate income tax. Also, non-gaming services are subject to a VAT rate of 13%, while there is a 10% tourism services fee that is applied to food and beverage sales.

As part of the new compliance requirements, casinos must implement a biometric identification system for customers and must have CCTV cameras that operate continuously 24 hours a day, with all footage being stored for at least six months. Furthermore, the 2025 Anti-Money Laundering (AML) regulations require that casinos report all transactions or daily spending over NPR 1 million through the GoAML system to the Financial Information Unit (FIU).

Upcoming Changes in Legislation

The Integrated Tourism Bill 2026 is the most significant legislative update, currently nearing final approval. Key changes include:

• Foreign Ownership Cap: Decreasing the foreign investment limit from 90% to 49% to encourage local equity.
• Border Restrictions: Reinstating a 5-kilometre minimum distance between casinos and international borders (up from the 3km limit set in 2019), though existing border casinos are “grandfathered” in.
• Location Bans: Completely prohibiting operations in areas of religious, cultural, or historical significance.
• Single License Rule: Restricting operators to one location per license, ending the practice of running multiple branches under a single permit.
• Social Responsibility: A mandatory 2% of annual profits must be spent on social development projects or paid into the state treasury.
• Operational Bans: The total prohibition of online or internet-based casino gaming, with strict penalties for unauthorized digital platforms.

Table 2: Regulatory Overview

Competitive Landscape

Key Market Players

In the land-based segment, all of the dominant operators are typically a joint venture between a local hotel group and an international casino management company, which together are tapping into a well-established hospitality industry in Nepal, mainly in Kathmandu and Pokhara, as well as in an effort to attract visitors from India and Bangladesh. Again, while the actual names of the companies are not documented here, the market is composed of approximately a small number of licensed casinos that are dedicated and limited by the government’s regulatory capacity.

Online gambling in Nepal is not very well regulated within the country and is dominated by international operators using offshore gaming licences. Leading iGaming companies such as Microgaming, NetEnt, Playtech, and Evolution Gaming – which is a rural-made company – offer software and platforms that may be used by Nepalese players. 

Popular international betting brands such as Bet365, 888 Holdings, and Betway regularly platform sports betting, casino games, and poker and are notably active in the Nepalese gambling market.

Market Share Distribution

In the land-based casino business, the market is relatively concentrated among a couple of operators, who dominate most of the licensed facilities. The introduction of new regulations limiting operators to one licence is likely to restrict further market share, reducing multi-location operators. 

The online gambling segment is highly fragmented, with numerous offshore operators vying for Nepalese customers. This market is growing rapidly due to mobile and digital payment ubiquity, but there is no market share data given that the online segment is unregulated. 

Partnerships and Strategic Alliances

Hotel chains directly partnering with casinos is a feature of the land-based gambling market in Nepal, specifically related to new laws that require hotel operations to have a minimum 10% ownership in any casino for which they apply for a licence to operate. These partnerships allow casinos to have more oversight and accountability in operations while offering casinos important links to wider tourism services. 

Table 3: Competitive Landscape Summary

Consumer Trends

Changes in player behaviour are occurring rapidly in Nepal, particularly amongst youth. The prevalence of gambling apps that are marketed as skill or fantasy games has shifted normalcy for many young men and women, as online betting and casino-style gaming have been normalised for teenagers and young adults. Social media, friends, and the idea of easy money are significant factors. The low cost of entry (as low as NPR 100) and the ability to deposit money easily using digital wallets such as e-Sewa or Khalti have made online gambling so much easier to engage with. 

Casino games, card games, roulette, slots, or fantasy games were the most played games and are not typologies of digital gambling, and while these types of games dominate the online gambling landscape, the introduction of live dealers is also gaining traction. The overwhelming majority of online gamblers are male; however, women are starting to engage in online gambling significantly, and it is still subject to cultural attitudes. 

Technological trends like mobile-first, instant deposits and gamification features are forming player expectations. Socially and culturally, gambling has been known to be stigmatised, although the approach for older generations may differ from Millennials and Gen Z as it pertains to digital gaming and gaming for entertainment purposes. Without effective regulation, the risks of gambling encompass many other factors, for example, gambling addiction and the potential financial harms that exist.

Table 4: Player Demographics and Preferences

Opportunities & Challenges

Growth Potential For New Entrants

• The growth of the regional tourism sector and high-end hospitality sector provides significant opportunities for earthbound casinos, especially those that market to Indian and Bangladeshi tourists. 
• The existing unfulfilled, pent-up demand for online gambling creates opportunities for regulated platforms, provided that the government moves to legalise and license online gambling. 
• Cooperation with local hotels and technology providers can spur innovation and service offerings in integrating non-gaming amenities and responsible gaming features. 
• Investment in robust security, compliance and player protections will account for horses for the long haul and long-term sustainability and credibility in the market. 

Regulatory and Operational Challenges

• The lessening of foreign investment caps and the restriction of one licence per operator may deter foreign entrants and consolidation of the market. 
• The uncertainty related to who may participate as a Nepali citizen and the lack of online gambling regulation lead to legal confusion and enforcement questions. 
• Excessive taxation and compliance costs may eat into profitability and deter new entrants. 
• The existence of illegal online gambling platforms places players at risk of financial and concurrent legal issues, to the detriment of the regulated sector. 
• Social concerns, particularly among youth, underscore the urgent need for responsible gaming programming and public awareness initiatives.

Conclusion & Recommendations

Nepal’s iGaming sector is at a pivotal moment, with significant regulatory changes likely to dazzle the competitive landscape. The government’s push to amend casino regulations, prioritise local ownership, and improve compliance capacities demonstrates the desire to capture the economic benefits of gaming while curtailing, or at least minimising, related societal risks. The glaring gap in the area of online gambling is the lack of a framework, which continues to feed unregulated sites while also exposing the most vulnerable populations to harm.

Strategic Recommendations for Market Entry

• iGaming operators and investors should watch closely for what legislative changes may occur, especially as it relates to foreign ownership regulations and licensing rules.
• Regulatory authorities should focus on devising a more complete online gambling framework, as there is a growing level of demand in the marketplace, necessitating adequate player protection.
• Industry stakeholders should consider investing in responsible gambling, enhanced compliance capabilities, and partnerships to foster confidence and sustainability.
• Marketing and business development executives should examine available digital channels and how they can develop local content and also consider a mobile-first focus to connect with Nepal’s progressing population of digitally savvy young people.

Future Outlook For the iGaming Sector in Nepal

If regulation clarity and law enforcement improve, Nepal could become a key integrated casino tourism business and, eventually, a regulated online gambling market. Working proactively with policymakers and investing in innovation will be crucial to taking advantage of the unique market conditions of the country.

Data and Sources:

1. 6Wresearch: “Nepal Gambling Market (2020 – 2026) | Trends, Outlook & Forecast,” June 2023; Detailed market size, growth rate, game types, and market dynamics for Nepal gambling sector
2. Polaris Market Research: “Online Gambling Market Size, Share, Trends | Report 2034,” May 2025; Insights on global and regional online gambling trends, technological drivers, and market growth projections
3. Stellar Market Research: “Asia-Pacific Online Gambling Market: Industry Analysis and Forecast,” April 2020; Regional market overview including major players, growth drivers, and regulatory environment relevant to Nepal
4. The Business Research Company: “Gambling Market Size, Share, Growth Outlook And Strategies To 2033,” January 2012 (updated); Global gambling market trends, competitive landscape, taxation, and regulatory challenges
5. Research and Markets: “Online Gambling Market Size, Share & Trends Analysis Report,” 2024; Market valuation and forecast for online gambling with emphasis on emerging markets
6. Knowledge Sourcing: “Global Online Gambling Market Size & Forecast 2025-2030”; Forecast data and growth rates for online gambling worldwide, supporting technological and demographic trends

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