Nepal has introduced a comprehensive 12-point directive aimed at stricter regulation of its gambling industry, including a complete ban on online casinos. Issued by the Department of Tourism under the Ministry of Culture, Tourism, and Civil Aviation, the directive mandates that all casino operators fully comply with the Anti-Money Laundering (AML) Act and counter-terrorist financing regulations.
Physical casinos are now required to adhere to the Casino Regulations, 2082, implementing stringent KYC protocols and biometric identification systems. Operators must maintain up-to-date records of all bettors and ensure continuous CCTV surveillance of gaming areas, with footage stored securely for at least six months. Profit tax deductions are now mandatory, and documented proof must be submitted to both the Inland Revenue Office and the Tourism Department. Casinos can no longer operate through third-party agreements or unauthorized locations, ensuring greater accountability and transparency.
The directive also imposes a full ban on online and internet-based casino gaming, citing unregulated cross-border transactions and money laundering risks. This move aligns with Nepal’s broader goal of strengthening its financial system and reinforcing confidence in domestic operations. Regulators have linked the measures to international compliance standards and risk-based inspections, where non-compliance may trigger immediate legal action.
Complementary reforms include Nepal Rastra Bank guidelines requiring Payment Service Providers to freeze accounts linked to sanctioned individuals or entities. These measures aim to fortify Nepal’s AML/CFT framework, covering non-financial sectors such as casinos, real estate, and precious metals.
Analysts note that the new rules will significantly reshape Nepal’s gambling sector, fostering transparency, accountability, and compliance with global standards. By banning online gambling and tightening oversight for physical casinos, the government seeks to mitigate financial crime risks while promoting a responsible, regulated gaming environment. This initiative marks a pivotal moment in the country’s efforts to align with international financial norms and enhance investor confidence in the gambling industry.
