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Government of Nepal Tightens Gambling Laws: Online Gambling Prohibited
In late 2025, the government of Nepal introduced sweeping changes to its gambling regulations. According to a new directive from the Department of Tourism, Ministry of Culture, Tourism and Civil Aviation, all forms of online gambling and casino gaming are now prohibited in Nepal.
The official rationale for the ban centers on preventing money‑laundering, unregulated cross‑border financial flows, and other illicit activities tied to remote gambling platforms.
What the New Rules Mean
- Online casinos & betting are banned — The directive explicitly prohibits gambling services delivered via the internet or other remote means.
- Stricter compliance for land‑based casinos — For traditional casinos operating on Nepalese soil, new safeguards are required. These include biometric verification of players and 24/7 video surveillance of gaming rooms.
- Currency restrictions — Casinos are barred from handling foreign‑currency transactions without explicit authorization from the Nepal Rastra Bank (NRB). This aims to tighten control over cross‑border flows.
These changes reflect the government’s effort to bring greater transparency and oversight to the gambling industry — particularly in light of the surge in online gambling activity over recent years.
Why Was This Ban Needed?
Under the existing legal framework in Nepal, gambling and betting have long been restricted. The Muluki Criminal (Penal) Code, 2074 — specifically Section 125 — criminalizes gambling and betting activities. Under this code:
- Gambling is defined broadly as wagering property or money on games of chance.
- Violations can result in imprisonment and fines, with repeated offenses carrying harsher penalties.
- Additionally, all apparatus, tools, or gains related to gambling may be confiscated.
While licensed land‑based casinos have existed, they have historically been heavily regulated, and locals were often barred from participation.
However, with the proliferation of online platforms and remote betting — often accessible via VPNs or offshore servers — the government saw a pressing need to explicitly ban online gambling to curb illicit activity. The 2025 directive formalizes this crackdown.
Impacts — What This Means for Stakeholders
✅ For Government & Regulators
- Stronger control over gambling-related financial flows and attempt to reduce money‑laundering risk.
- Greater oversight of casino compliance with AML (anti‑money laundering) and CFT (counter‑terrorism financing) norms.
🚫 For Online Operators & Gamblers
- Online casinos and betting sites targeting Nepalese players face immediate prohibition — potentially forced to shut down or relocate.
- Punitive legal risks for players and operators caught violating the ban.
🏨 For Land-based Casinos
- More stringent compliance requirements — biometric checks, surveillance, restricted currency handling.
- Land‑based venues may bear increased operational costs due to compliance measures.
🔍 For the Industry & iGaming Platforms
- A shift away from online offerings in Nepal; potential reduction in market size or demand.
- Heightened regulatory risk — companies need to assess compliance and potential exit strategies.
Conclusion
The 2025 directive from Nepal’s tourism and regulatory authorities marks a major tightening of gambling laws in the country: online casinos and remote betting are now firmly prohibited, and land‑based venues face significantly increased compliance burdens. This shift reflects a broader governmental aim to prevent illicit financial flows and bring greater oversight to the gaming sector.
For companies looking to navigate such regulatory shifts, develop compliant platforms, or explore legitimate gaming‑industry opportunities, institutions like AIS Technolabs can offer expertise and guidance. To discuss your compliance strategy and explore solutions, book a meeting with us today.
Disclaimer
This blog is intended for informational and educational purposes only. We do not promote or facilitate gambling activities in any country where it is considered illegal. Our content is focused solely on providing knowledge about legal and regulated markets. We only work with operators and platforms that are licensed and comply with the laws of jurisdictions where casino gaming is permitted. We do not operate or endorse any form of gambling in restricted regions. In countries where only skill-based games are allowed, our involvement is strictly limited to those games.
We believe gambling should be an entertaining and responsible activity. Our goal is to ensure that the platforms we review uphold the highest standards of fairness, transparency, and player safety.
FAQs
Ans.
Yes — while land‑based casinos still operate (subject to strict rules), all forms of online gambling and remote casino services are strictly banned under the new directive.
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Under Section 125 of the Penal Code, individuals engaging in gambling or betting — or facilitating it — risk imprisonment and fines. Repeat offenses carry even heavier penalties, and any tools or earnings from gambling can be confiscated.
Ans.
Yes — but only under strict regulation. Casinos must comply with biometric verification for players, implement 24/7 video surveillance, and avoid unauthorised foreign‑currency exchanges unless approved by NRB.
Ans.
The decision appears driven by a sharp increase in online gambling activity and concerns about unregulated flows of money, risk of money‑laundering, and lack of oversight of remote gaming platforms.
Ans.
Yes. Traditional games held during public events (festivals, exhibitions) — with small stakes — and government‑authorized lotteries may be exempted from the gambling ban under the law.
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