Casino Regulations in Nepal: Licensing & Compliance 2026

Nepal’s casino sector is governed by a robust legal framework aimed at transparency, security, and responsible gaming. The Casino Regulations, 2025 (“Regulations”).

This guide prepared by Onesphere Law Associates provides a comprehensive overview of casino establishment, licensing requirements, renewal procedures, and ongoing compliance obligations in Nepal.

Legal Framework Governing Casinos in Nepal

Casino operations in Nepal are regulated primarily under:

• Tourism Act, 2035 (1978)
• Casino Regulations, 2025
• Foreign Investment and Technology Transfer Act (FITTA), 2019
• Nepal Rastra Bank directives
• Anti-Money Laundering (AML) laws and FIU guidelines

Casino activities are permitted exclusively for foreign nationals, except as otherwise allowed for regulatory inspections.

Key Definitions under Casino Regulations, 2025

• Casino: A licensed establishment offering table games and/or electronic gaming services.
• Operating Entity: A company legally incorporated in Nepal responsible for casino operations.
• Gambling Game: Any game of chance involving monetary stakes, including roulette, blackjack, poker, and electronic machines.

Minimum Capital Requirement for Casino Establishment

Under Section 45 of the Tourism Act:

Existing license holders must meet the revised capital threshold by April 2028.

Prior Approval Process for Casino Establishment

Applicants must submit an application in Schedule-1 format with a fee of NPR 10,000, along with:

• Commitment letter from a four-star or higher hotel
• Memorandum & Articles of Association
• Shareholder and capital structure details
• Identity documents of shareholders
• Environmental Impact Assessment (Schedule-2)
• Technical & financial proposal (Schedule-3)
• Border-area security compliance (if applicable)

Upon verification, the Department of Tourism grants prior approval.

Grounds for Refusal of Prior Approval

Prior approval shall be denied if:

• Directors fall under disqualification under the Tourism Act
• Any director is below 18 years of age
• Minimum capital requirements are unmet
• Required fees or documents are incomplete
• Multiple casinos are proposed within one hotel
• Security standards near international borders are not met

Licensing & “Fit and Proper” Criteria

To obtain or renew a casino license, operators must comply with strict fit and proper standards, including:

• Biometric access systems and CCTV with 6-month data retention
• Walk-through gates and metal detectors
• KYC & AML compliance systems
• Certified security personnel and emergency exits
• Medical facilities, counterfeit detection machines, and cultural programs
• Separate entry points for staff and players
• Enhanced security and police recommendations for border-area casinos

Failure to comply may result in inspection directives or refusal of renewal.

Casino Licensing Fees & Royalty Structure

Application Fees

License Fees

Annual Royalty

Royalty payment schedule:

• 40% by mid-Poush (Jan)
• 70% by mid-Chaitra (Apr)
• Balance by mid-Asar (July)

Late payments attract penalties up to 30% annually.

Financial Guarantee

• 1.5 times annual royalty or
• Bank guarantee from a Class “A” commercial bank

Issuance and Renewal of Casino License

Upon compliance and payment, the Department issues an operating license under Schedule-7.

Renewal Requirements

• Proof of royalty payment
• Bank guarantee
• Audited financials
• Tax clearance certificates
• CSR expenditure records
• Hotel license renewal
• Updated shareholder/director details

Renewal Fees

Renewal is denied if:

• Unauthorized games are operated, or
• The host hotel’s license is suspended or revoked

Cancellation of Casino License

The Department may cancel a license after issuing a 7-day public notice for clarification. Licenses may also be voluntarily surrendered after clearing all dues. Relevant authorities, including the Office of the Company Registrar, are notified upon cancellation.

Relocation & Consolidation of Casino Operations

Companies operating multiple casinos must consolidate operations and notify the Department by FY 2025/26. Border-area casinos must either comply with enhanced security or relocate to a four-star hotel at least five kilometers away.

Mandatory Compliance Obligations

Licensed casino operators must:

• Prohibit entry of Nepali citizens
• Prevent loans or credit to players
• Report suspicious activities to Nepal Police
• Maintain AML and FIU reporting
• Prohibit gambling advertisements within Nepal
• Employ minimum Nepali staff (50 for large, 5 for small casinos)
• Spend 2% of net income on CSR
• Prohibit online gambling

Operational & Financial Controls

• Mandatory ID issuance and record retention (5 years)
• Approved betting limits and payout ratios
• Same-day tax deduction on winnings
• NRB-approved chip reserves
• Reporting of transactions exceeding NPR 2.5 million per day

Registration of Casino Business in Nepal (FDI Perspective)

Casino businesses fall under restricted foreign investment sectors, requiring approval from:

• Department of Industry (DOI)
• Nepal Investment Board (for large projects)
• Ministry of Culture, Tourism and Civil Aviation

The process typically takes 12–18 months and involves:

• Company incorporation
• FITTA approval
• Tourism and casino licensing
• Security and operational inspections

Ongoing Reporting & Monitoring

• Monthly transaction and currency reports
• Annual reports (Schedule-13)
• Regular inspections by the Department
• Mandatory staff training every three years
• Blacklisting for violations (up to 3 years)

Onesphere Law Associates provides end-to-end legal support for casino investors and operators in Nepal, including:

• Casino licensing & renewal
• FDI approvals and joint ventures
• Regulatory compliance & inspections
• Royalty, tax, and CSR compliance
• Relocation and consolidation approvals