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Nepal has increased the annual royalty fees for its land-based casino sector under the Financial Bill for the 2026-27 fiscal year, with higher charges for both full-scale and mini casinos. The changes are part of the government’s effort to raise state revenue, but operators say the revised structure could add further pressure to a sector already facing rising costs.
Higher Royalties Set
Under the revised system, the yearly royalty for a full casino license has increased from NPR50 million ($327,800) to NPR55 million ($360,600). The yearly royalty rate for mini-casinos, which use electronic gambling machines, has doubled from NPR15 million ($98,300) to NPR30 million ($196,700).
These changes have been made by the government to raise funds for the state. The updated fees were introduced through the Financial Bill for the 2026-27 fiscal year, marking a clear increase in the amount operators must pay each year to continue operating.
The revised rates apply to a sector that already carries a range of financial obligations. While the government has framed the move as a revenue measure, the response from the industry has focused on whether the higher charges can be sustained under current operating conditions.
Operators Raise Concerns
The industry representatives explained that the increased royalty was coming at a time when the casino businesses are already struggling with increasing costs. Some of the cost factors cited by them included higher taxation on alcoholic drinks, increasing salary costs, interest rates, and electricity costs.
They expressed concern that some of the electronic gambling operations might not be viable anymore with all these increasing costs. Their concern is that the increase could affect the viability of venues that operate on tighter margins.
Operators also said closures would have a wider effect on government income. In their view, any reduction in the number of operating venues would lower royalty payments and also reduce collections from corporate taxes, value-added tax, and excise duties.
The argument suggests that the financial impact of the policy could extend beyond casino operators themselves. It would also affect the related tax base that the government currently receives from the sector.
Employment And Tourism Link
Mini casino operators estimated that this business employs between 4,500 to 5,000 people directly. According to the operators, this industry indirectly provides thousands of job opportunities in various sectors such as hotel management, restaurant services, transportation companies, security firms, food suppliers, information technology, and others related to the tourism industry.
This information has been provided by the industry to emphasize its larger economic importance. The sector’s employment footprint extends beyond gaming floors and into a range of tourism-related services.
The concerns raised by operators focus on more than higher fees alone. They also point to the possibility of broader disruption across supporting businesses if the new structure leads to closures or reduced activity.
Review Call From Industry
In response to the changes, operators have called on the government to review the new royalty structure. They want discussions involving casino operators, hotels, tourism experts, labour representatives, and relevant government agencies.
The request reflects the industry’s view that the revised fees should be examined in the context of operating costs, employment, and tourism activity. For now, however, the new royalty structure remains in place under Nepal’s 2026-27 budget.
Source: Focus Gaming News
