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A sudden wave of offshore gambling apps has entered Nepal, creating a fast-moving digital market that the state is struggling to control.
Nepal is now facing a sharp rise in online gambling activity, months after India banned online betting. Offshore platforms registered in Curaçao and similar jurisdictions are promoting sports betting and casino games directly to Nepali users, despite Nepal’s long-standing prohibition on gambling for citizens. The situation has exposed enforcement gaps and raised questions about how quickly operators can scale when oversight falls behind.
Operators expand quickly through social media
The apps have used influencers, cash offers, and local imagery to reach Nepali audiences.
Platforms such as Khalti88’s K88, IME88, JW8 Nepal, and JayaBazi Online Casino are advertising heavily on Facebook, Instagram, TikTok, and local influencer channels. Many promotions are filmed at well-known Nepali landmarks and presented in the local language. Several operators encourage referral schemes that reward users for bringing in new players, creating fast viral growth.
These apps appear to be using domestic banking routes for deposits and withdrawals, even though citizens are not permitted to gamble online. Nepal only allows gambling in licensed casinos and only for foreign visitors. The mismatch between the law and current activity has created room for offshore brands to operate openly in public feeds.
Enforcement data shows a rapid escalation
Arrest numbers have grown each year as cross-border networks become more organised.
Police records show that online gambling cases have risen sharply. Authorities reported only two arrests in 2020 and 2021. That figure climbed to 147 cases in 2023 and 2024. Many incidents involved foreign nationals or cross-border betting groups connecting Nepal, India, and other regions.
Officers at the Central Investigation Bureau and Cyber Bureau say they investigate severe cases and respond to complaints, but enforcement remains reactive. This has allowed offshore operators to expand quickly after India’s ban, with Nepal becoming a convenient target market.
Digital-rights experts warn of weak oversight
Calls for stronger accountability now extend to social media platforms that earn revenue from these ads.
Digital Rights Nepal executive director Santosh Sigdel said enforcement must extend beyond advertisers. In his words, “The government must hold social media platforms accountable, as they earn billions from advertisements promoting prohibited materials, including online gambling.” He noted that Meta recently told Reuters that around 10% of its global revenue came from ads linked to scams and banned products.
Sigdel said Nepal lacks a specific framework to regulate social platforms, even though the National Penal Code includes gambling prohibitions and rules that allow fines for advertising illegal content. Despite existing laws, ads for offshore operators continue to appear widely, taking advantage of delayed action and limited monitoring.
Why is the situation growing now
India’s crackdown redirected operators to Nepal, where digital controls remain limited.
India’s ban on online betting created an immediate gap in the regional market. Offshore operators that once targeted large Indian audiences are now shifting attention to Nepal, where digital enforcement systems are still developing. Nepal’s regulators are facing a mixture of foreign platforms, opaque financial flows, and aggressive marketing strategies.
For industry observers, the trend highlights how fast offshore operators adapt to regulatory changes in one country by shifting to another. It also shows how important clear rules, monitoring tools, and coordinated enforcement have become across South Asia.
What this means for the broader market
The next steps will shape how regional operators approach Nepal and neighbouring countries.
The rise of these platforms suggests that gaps in oversight can drive rapid market entry, even in jurisdictions with strict prohibitions. For B2B stakeholders, the landscape signals potential demand for compliance systems, payment verification tools, and risk-monitoring technology if Nepal moves toward stronger controls.
If no structured response emerges, offshore apps are likely to maintain their presence, strengthen referral networks, and continue reaching users through mainstream social channels. The outcome will depend on how Nepal updates its digital regulation and how social platforms respond to pressure for stricter ad policies.
What happens if regional operators continue to grow faster than the systems meant to regulate them?
Source: Tribuna.com
