Nepal revamps Casino laws: Stricter rules and higher capital for operators

KATHMANDU: In a landmark move poised to redefine the casino industry across South Asia, the Government of Nepal has issued a new and comprehensive set of rules titled “Casino Regulations 2082”, formally published in the Nepal Gazette.

The new regulation, enforced under Section 46 of the Tourism Act 2035, replaces the Casino Regulations of 2070, introducing a mix of tougher compliance measures and strategic relaxations aimed at promoting tourism, ensuring regional security, and expanding Nepal’s appeal in the global casino world.

These changes, introduced by the Ministry of Culture, Tourism and Civil Aviation, align Nepal with evolving international casino norms while seeking to position the country as a rising destination in Asia’s gaming and entertainment sector.

Higher Investment Requirements for Entry into Nepal’s Casino Sector

Under the new rules, the minimum paid-up capital required to operate a casino has been significantly raised.

Large casinos must now maintain a minimum paid-up capital of NPR 300 million, up from the previous NPR 250 million.

Small casinos, which include only electronic or machine-based games, must have at least NPR 200 million, up from NPR 150 million.

This measure aims to attract serious investors and improve financial discipline in the industry. Existing operators are given a grace period until Chaitra 2083 BS (April 2027) to comply.

New Location Rules and Relaxation in Border Zone Restrictions

In a notable shift, distance restrictions from international borders—once a key limitation—have been eased. Casinos can now operate within five kilometers of the international border, provided they receive a positive recommendation from the District Security Committee, including submission of a detailed security plan and employment of at least 20 trained security personnel.

Previously, casinos were banned outright from operating within five kilometers of Nepal’s border zones, a rule that had stifled development in strategic tourist locations like Bhairahawa and Kakadvitta.

Licensing and Pre-Approval Compliance Tightened
To apply for a casino license:

A pre-approval fee of NPR 10,000 is mandatory.

Applicants must submit a feasibility report, economic and technical proposals, and written consent from a four-star or higher-rated hotel.

For licensing, the application fee is NPR 1.5 million for large casinos and NPR 1 million for small casinos.

Annual renewal fees are NPR 15 million and NPR 7.5 million respectively.

Additionally, companies cannot operate more than one casino at the same hotel or resort, and any firm operating multiple locations must apply to maintain just one license by mid-Ashar 2082.

Surveillance, Security & Responsible Gambling Measures Strengthened

Nepal’s new casino law introduces robust surveillance and anti-money laundering (AML) standards:

Casinos must maintain 24-hour live CCTV surveillance of all games.

CCTV footage must be stored for at least six months.

All visitors must pass through walk-through gates and metal detectors, and be recorded via biometric identification systems.

Casinos must implement KYC (Know Your Customer) systems, and comply with AML requirements.

Entry is strictly prohibited for Nepali citizens, except for licensed staff or government inspectors. Visitor records must be preserved for at least five years.

To prevent tax evasion and fraud:

Profit distribution and maximum betting limits must be regulated.

Winnings are subject to incidental profit tax, and tax must be deposited with the Inland Revenue Office.

All gaming equipment, including tables, chips, and software, must receive departmental approval before import and use.

Mandatory Fire Safety, Transportation, and Hotel Association
Operational casinos must now:

Install a 40-horsepower fire control system.

Own at least five four-wheeled vehicles, with agreements for additional transport as needed.

Operate only within a four-star or higher-rated hotel or resort.

These changes ensure better infrastructure, safety, and tourism integration, addressing long-standing criticisms from the hospitality sector.

Employment and CSR Obligations for Casino Operators

The regulation also places social and employment responsibilities on casino operators:

Large casinos must employ at least 150 Nepali citizens.

Small casinos are required to employ a minimum of 50 locals.

At least 2% of net annual profit must be allocated to Corporate Social Responsibility (CSR) projects in areas such as tourism promotion, education, health, sports, and environmental protection.

Operators must also provide seven days of training annually to staff on operations, internal control, and security.

Implications for the Casino Industry in South Asia and Asia

By tightening regulations while relaxing border-based restrictions, Nepal positions itself as a strategically competitive gaming hub in South Asia, targeting regional and global tourists. With its blend of cultural heritage, adventure tourism, and new gaming infrastructure, Nepal could rival emerging casino markets in Macau, Singapore, Goa, and other parts of Asia.

However, the ban on local participation, along with the need for high investment and infrastructure commitments, could present operational challenges for smaller investors or new entrants.

A Step Toward Transparent, High-Value Tourism

With the issuance of Casino Regulations 2082, the Nepal government signals a clear intent: to professionalize and globalize its gaming industry, strengthen security, and ensure that the economic benefits of casinos contribute directly to the country’s tourism economy and local communities.

The Ministry of Culture, Tourism, and Civil Aviation retains authority to amend these rules via public notice, allowing for future flexibility based on industry trends and national needs.