Online gambling in Nepal: regulation, licence and market guide

Is online gambling legal in Nepal?

Sections 121 to 125 of the National Penal Code 2074 (in force since 17 August 2018) make gambling and betting without government permission an offense for players and organizers alike. The only permitted gambling is in casinos licensed by the Department of Tourism under the Tourism Act 2035 (1978) and the Casino Regulation 2082, published on 30 June 2025 to replace the 2013 rules; Nepali citizens are barred from entering or playing, customers must show a foreign passport and be over 18, and casinos must run inside licensed hotels. The regulation and a 12-point Department of Tourism directive issued in 2025 state that internet-based or online gaming is strictly prohibited, so no online licence of any kind exists.

Prohibited: Online gambling is illegal for operators and players and is enforced.

Who regulates gambling in Nepal?

• Department of Tourism, Ministry of Culture, Tourism and Civil Aviation (DoT) — Licenses, monitors and renews casinos under the Tourism Act and Casino Regulation 2082; collects licence fees and royalties and issues compliance directives
• Nepal Police and district administration — Enforce the Penal Code gambling offenses, including arrests linked to online betting apps
• Financial Information Unit, Nepal Rastra Bank (FIU) — Anti-money-laundering supervision of casinos, including customer identification and large-transaction reporting

Nepal gambling licence: how it works

There is no licence for online casino, betting, poker or lottery; the Casino Regulation 2082 lists online gaming among prohibited activities and the Department of Tourism's 2025 directive repeats that internet-based gaming is strictly prohibited. Land-based casino licences are available to Nepali companies for premises inside licensed hotels or resorts, in two classes (full casino with tables and machines, or machine-only), with staffing quotas for Nepali employees, biometric customer records kept for five years, CCTV retention, AML reporting and a minimum distance from the Indian border. Casino licences are renewed annually by mid-July. GameBridge does not provide land-based casino systems, so this guide covers the online position only.

What an applicant needs

• Nepali company operating within a licensed hotel or resort named in the licence
• Application fee, licence fee, annual royalty and a financial guarantee deposited within 35 days of approval
• Foreign passport holders over 18 only; identity documents recorded and retained for five years
• Minimum Nepali staffing quotas and AML compliance under the Financial Information Unit's casino directive
• No internet-based or online gaming; no operation through third-party agreements or at unlicensed locations

Gambling taxes in Nepal

• Operators: Casinos pay the licence fees and an annual royalty set in the Finance Act (in the tens of millions of rupees), plus corporate income tax. No online gambling tax exists because no online gambling is lawful.
• Players: Casinos must deduct the applicable windfall (incidental) gains tax from winnings before payout and issue a withholding certificate, under the Income Tax Act 2058.
• Also: Foreign-currency transactions in casinos require Nepal Rastra Bank authorization.

Advertising, player protection, KYC and payments

Advertising

Promoting gambling is an offense under the Penal Code, and Section 5 of the Advertising (Regulation) Act 2019 empowers authorities to fine those advertising illegal content, including gambling. Casinos may market only to foreign visitors.

Responsible gaming

The regulatory model is exclusion of citizens rather than player-protection tools: Nepalis may not enter casinos, entry is for over-18 foreign passport holders, and the 2025 directive requires biometric customer records and security within and around premises.

Identity and age verification

Casinos must issue ID cards to every entrant based on a passport or other government document, keep the records for five years and supply them to the Department of Tourism on request; AML customer identification and large-transaction reporting apply.

Payments

Cash and card transactions inside licensed casinos, with foreign-currency dealings subject to central-bank authorization. Payments for online gambling are unlawful, and police have targeted digital wallets and accounts used by betting apps.

Notable restrictions

• All gambling and betting outside licensed casinos is a Penal Code offense for players and organizers
• Nepali citizens may not enter or play in casinos
• Internet-based or online gaming is expressly prohibited
• Casinos must operate inside licensed hotels and observe a minimum distance from the international border
• Foreign-currency transactions require Nepal Rastra Bank approval

Nepal iGaming market: size, players and payments

No reliable public estimate. Licensed casinos are concentrated in Kathmandu and in border towns such as Birgunj, Bhairahawa and Nepalgunj, serving mainly Indian visitors.

Nepal Police report a sharp rise in online gambling-related arrests, and The Himalayan Times reported in 2026 that betting apps had shifted attention to Nepal after India's 2025 ban on online money games.

Mobile wallets and smartphones are widespread, which is why enforcement against online betting focuses on digital payment accounts.

A small number of licensed casino operators inside hotels in Kathmandu and the southern border districts; no lawful online operators.

Timeline: how Nepal got here

1. 1968Nepal's first casino opens in Kathmandu for foreign visitors
2. 1978Tourism Act 2035 provides the legal basis for casino licensing
3. 2013Casino Regulation 2070 sets licence fees, royalties and the ban on Nepali players
4. 2018-08National Penal Code 2074 in force; Sections 121–125 criminalize gambling and betting
5. 2025-06Casino Regulation 2082 replaces the 2013 rules, raising fees and prohibiting online gaming
6. 2025Department of Tourism issues a 12-point compliance directive on AML, biometrics, CCTV and the online ban
7. 2026Police report a surge in online betting activity and arrests following India's online money gaming ban

Outlook

A bill to amend and consolidate tourism laws was before Parliament in 2025 and may move casino rules into primary legislation, including the border-distance rule; no proposal to legalize online gambling or to admit Nepali players exists. Expect continued police action against betting apps and their payment channels, and tighter AML supervision of casinos.

GameBridge and Nepal

Not served by GameBridge. Online gambling is prohibited in Nepal and the only licensed gambling is land-based casino play for foreigners, so GameBridge excludes Nepal by geo-controls by default; this page exists so compliance teams can verify that status quickly.

Nepal is on the default country deny list of every real-money brand on GameBridge, enforced by GeoIP with a device GPS re-check and a restricted-region page, and the setting is logged so a compliance officer can evidence it. GameBridge does not configure casino, sportsbook, poker or lottery products for Nepali users and does not supply land-based casino systems. Whether a free-to-play social game without prizes may be offered to Nepali users is a question for the operator's counsel under the Penal Code, and any such brand would run with prize redemption disabled.

Frequently asked questions

Sources and review

Reviewed against the sources below on 11 September 2026. Regulation changes; confirm the current position with local counsel before launch.

• Government's two-tiered provisions on casinos: exemption for the old, stricter for the new (Casino Regulation 2082) — Kantipur, accessed 2026-09-11
• Govt tightens oversight with new 12-point directive for casinos — Khabarhub, accessed 2026-09-11
• Establishment of casino and licensing requirements in Nepal (Casino Regulations 2025) — Law Imperial, accessed 2026-09-11
• Gambling and betting law in Nepal — Penal Code Sections 121–125 — Alpine Law Associates, accessed 2026-09-11
• Illegal online casinos flood Nepal after India's gambling ban — The Himalayan Times, accessed 2026-09-11

Regulatory summaries are provided for orientation only and are not legal advice. Licensing requirements change; we validate them with you during scoping.