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Gambling and casinos in Nepal
Nepal is a unique South Asian country, combining Buddhist traditions and openness to tourism.
Although gambling is prohibited for citizens of the country, the government allows casinos for foreigners, turning them into a source of foreign exchange.
Nepal thus occupies an intermediate position between the conservative Islamic countries of the region and the liberal model of Goa or Macau.
Legislative framework
Gambling is regulated by Casino Rule 2013 (updated in 2019), published by the Ministry of Tourism and Civil Aviation of Nepal.
Key points:- casinos are only allowed for foreigners;
- Nepalese citizens are prohibited from entering under the threat of a fine;
- casinos can only operate at licensed Category 5 hotels;
- all licenses are issued by the Ministry of Tourism;
- the minimum authorized capital of the operator is NPR 250 million (about $2 million).
For locals, gambling is regulated by Public Gambling Act 1963, which prohibits all types of betting and card games on money.
Historical context
The first casino in Nepal appeared in 1968 - Casino Nepal, opened at the Soaltee Hotel Kathmandu.
It was the first legal casino in South Asia.
During the 1980s-2000s, more than a dozen casinos opened in the country, targeting tourists from India, China and Bangladesh.
After political crises and corruption scandals in 2011, the licenses of many operators were canceled.
However, in 2013, the authorities again allowed the casino to operate in compliance with strict rules, including the payment of taxes and annual license fees.
Casino in Nepal
For 2025, there are about 10 licensed casinos in the country, concentrated in two tourist centers:- Kathmandu
- Casino Mahjong
- Casino Anna
- Casino Royale Kathmandu
Pokhara
Tiger Palace Resort Casino- Casino Pokhara Grande
Casinos offer classic games: roulette, blackjack, baccarat, poker and slot machines.
Entry for Nepalese citizens is strictly prohibited - visitors must present a foreign passport.
Online gambling
Nepalese law does not contain a separate section regulating online gambling, but it is actually prohibited.
According to the Public Gambling Act 1963, any electronic gambling is considered a violation of the law.
However, in practice:- residents and tourists actively use offshore sites with licenses from Curacao, Malta and the Philippines;
- the state does not have the technical infrastructure for blocking;
- VPNs and crypto payments allow you to bypass restrictions.
Online poker and cricket betting are especially popular, as well as games on 1xBet, Parimatch, Betway and 22Bet platforms.
Financial side
Casinos play an important role in the economy of Nepal, providing:- foreign currency receipts;
- tax and royalties;
- development of tourism and hotel infrastructure.
Taxation
According to the Ministry of Tourism, in 2024, the gambling sector brought the state more than NPR 2.5 billion ($19 million) in tax revenues.
Control and compliance
The regulator is the Department of Tourism (DoT).
He is responsible for:- issue and renewal of licenses;
- audit of financial flows;
- control over the execution of Casino Rule 2013;
- struggle involving Nepalese citizens.
In 2022, the authorities revoked the licenses of three casinos for tax evasion, which confirmed the seriousness of state control.
Social aspect
Buddhism and Hinduism have traditionally viewed gambling negatively, seeing it as a source of addiction and financial problems.
Therefore, within the country, gambling is perceived as unacceptable behavior, especially among young people.
However, the government takes a pragmatic approach:Thus, casinos are seen not as entertainment, but as a tourist tool.
Cryptocurrencies and the illegal online market
Cryptocurrencies in Nepal have been banned since 2021 (Nepal Rastra Bank ruling), which has complicated the work of offshore casinos.
However, some players continue to use P2P payments and anonymous wallets.
In 2023, Kathmandu police detained a group that ran an illegal cricket betting site with a turnover of more than $1 million, the largest case in the history of Nepalese cyber surveillance.
Economic importance
The casino industry brings stable income, especially due to tourists from northern India, where gambling is prohibited.
According to Nepal Tourism Board:- about 80% of casino visitors are Indian citizens;
- the average player's check is $200-400;
- the sector provides more than 5,000 jobs.
Prospects
In the coming years, Nepal plans to:1. Introduce an electronic system for monitoring casino and financial flows.
2. Create a tourist gambling zone in Pokhara and Birganja.
3. Develop a separate law on online gambling to regulate foreign platforms.
4. Attract investment in integrated entertainment resorts (IR), following the example of Singapore and Macau.
Nepal is a rare example of a country where gambling is strictly prohibited for citizens, but legal and actively developing for foreigners.
This model allows religious traditions and moral balance to be maintained while generating income for the economy.
Online gambling remains illegal, but offshore platforms and VPNs create a "gray area" in which both tourists and locals play.
Thus, Nepal's gambling sector is tourism, foreign exchange earnings and strict controls, where excitement is not part of the culture, but part of the economic development strategy.
