Onesphere Law Associates, a leading law firm in Nepal, presents this in-depth legal guide on Gambling and Betting Laws in Nepal, including the latest developments related to online gambling, cryptocurrency regulations, and associated penalties under Nepalese law. As the rise of digital platforms like 1xBet, Juwa 365, and Binance introduces new challenges, it’s critical to understand what constitutes legal and illegal gambling in Nepal.
Background: Understanding Gambling and Betting
Gambling refers to risking money or valuables on uncertain outcomes, mostly determined by luck or chance. Common examples include lotteries, dice games, and slot machines.
Betting, on the other hand, typically involves placing wagers on the outcome of sports or events such as football matches or horse racing where outcomes may involve some level of analysis or skill.
In legal terms, betting is a form of gambling, but one that is often more event-specific and can include a degree of predictability.
Online Gambling in Nepal
Online gambling involves internet-based platforms—such as websites, mobile apps (like 1xBet, Juwa 365, Cash App) or cryptocurrency exchanges (e.g., Binance) where participants stake money or digital assets on games of chance or skill.
- In Nepal, all forms of online gambling and betting are prohibited under Section 125(1) of the Muluki Criminal (Penal) Code, 2074.
- This includes:
- Betting apps
- Cryptocurrency-based gambling
- Foreign digital wallets and platforms
- The Nepal Telecommunications Authority and Nepal Rastra Bank (NRB) have also actively issued directives to block or restrict access to such sites and wallets.
Governing Laws of Gambling and Betting in Nepal
a) Muluki Criminal Code, 2074 – Section 125
- Defines gambling as any game played with the intent to gain or lose property based on chance or the outcome of another party.
- Prohibits gambling, betting, and encouraging or facilitating such activities.
- Excludes:
- Games approved by the Government of Nepal for public festivals.
- Authorized lotteries.
b) Nepal Rastra Bank (NRB) Act, 2058 – Sections 95 & 96
- Section 95: Grants NRB the authority to regulate:
- Foreign exchange transactions
- Electronic payments
- Cryptocurrency and virtual currencies
- NRB has issued directives banning online gambling and betting, especially when linked to cryptocurrency platforms.
Penalties under Section 96 for violating NRB directives:
- Confiscation of assets involved in the offense.
- Fine up to three times the value of the illegal transaction.
- Imprisonment of up to 7 years, or both.
Punishments for Online Gambling
a) Gambling (Section 125 of Penal Code)
| Offense | Penalty |
|---|---|
| First offense | Imprisonment up to 3 months or fine up to NPR 30,000 or both |
| Second offense | Imprisonment up to 1 year and fine up to NPR 50,000 |
| Repeated offenses | Additional 3 months and NPR 10,000 fine for each repeat |
| Property | Confiscation of tools, property, and earnings from gambling |
b) Betting
- Imprisonment up to 1 year
- Fine up to NPR 10,000
- Forfeiture of the claimed amount
Online Gambling Cases in Nepal: Real Examples
Nepal has seen a surge in high-profile online gambling arrests linked to international apps and crypto-based transactions:
Lalitpur Gambling Bust (Feb 3, 2025)
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24 individuals (Nepali and Indian) arrested.
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Used 8+ betting apps and transacted over NPR 7.7 billion.
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Seizure: Mobile phones, laptops, ATM cards, Aadhaar cards, and passports.
CIB Call Center Raid (Lalitpur)
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53 individuals arrested for running illegal online casino.
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Seized: 85 laptops and 82 mobile phones.
IPL Betting Racket (March 26, 2025)
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11 Indian nationals arrested.
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Involved in Rs 2 billion+ cryptocurrency and betting transactions.
Actor Arrest Case (June 15, 2025)
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Several Nepali actors arrested for promoting 1xBet.
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Charged under Section 125 and Advertisement Regulation Act.
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Alleged transactions exceeded NPR 740 million.
Crypto-Linked Arrest (May 13, 2024)
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Fund collection for 1XBet and Juwa 365.
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Transactions over NPR 2.11 billion traced to 56 accounts.
Hundi and Forex Violation (Nov 23, 2023)
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Person arrested for online gambling and illegal remittance.
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Seized: Cash, foreign currency, laptops, checkbooks, passports.
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Difference Between Game of Skill vs Game of Chance
| Aspect | Game of Skill | Game of Chance |
|---|---|---|
| Outcome | Controlled by player skill and knowledge | Determined by randomness or luck |
| Legal Status | Often not classified as gambling | Strictly regulated under gambling laws |
| Examples | Chess, e-sports, poker | Dice games, slots, lottery |
Nepali law does not currently exempt skill-based games from gambling classification if played for money, particularly when done online.
Prosecution Process in Gambling and Betting Cases
- Arrest: Accused individuals must be produced before court within 24 hours.
- Remand: Up to 25 days for investigation, with court approval.
- Charge Sheet: Filed by the District Government Attorney if enough evidence is found.
- Hearings: Court decides bail, reviews evidence, hears witnesses.
- Judgment: Delivered after full trial; may include financial and cybercrime charges.
- Appeal: Defendants can challenge the judgment in higher courts.
Legal Services by Onesphere Law Associates
Onesphere Law Associates provides end-to-end legal support in gambling, betting, and cryptocurrency-related offenses:
- Legal Consultation: On Section 125 of the Penal Code and NRB directives.
- Strategic Case Assessment: Tailored legal strategies based on evidence and case profile.
- Court Representation: From police station to the Supreme Court.
- Document Preparation: Filing petitions, affidavits, bail applications, and appeals.
- Defense Against Cryptocurrency Charges: Handling financial crimes tied to gambling.
- Plea Negotiation and Settlement: For first-time offenders or low-risk cases.
Conclusion
Gambling and betting—especially through online platforms and cryptocurrency—have become a major legal issue in Nepal. The Muluki Criminal Code and the Nepal Rastra Bank Act strictly prohibit such activities, with harsh penalties, including fines, imprisonment, and asset forfeiture.
For anyone facing investigation, arrest, or prosecution for gambling-related offenses, expert legal advice is essential.
Contact Onesphere Law Associates , the best law firm in Nepal today for specialized legal assistance in gambling, betting, online fraud, cryptocurrency, and financial crimes in Nepal.