The Ministry of Culture, Tourism and Civil Aviation (the “Ministry”) under the Government of Nepal issued the Casino Regulations, 2082 (2025) (“Casino Regulations”). The primary objective of the Casino Regulations is to regulate the establishment, licensing, operation, and monitoring of casinos in Nepal, while ensuring security, transparency, and responsible gaming practices.
This article provides a general overview of the casino business incorporation requirements, licensing and renewal procedures, management obligations, and monitoring provisions for casino operations.
I. Key Definitions
The key definitions under Casino Regulation are as follows:
- Large Casino: Casinos that offer both games played by hand, with the help of the dealer or spinner, by distributing cards, chips or coins, and games played by means of modern machines or electronic devices.
- Small Casino: Casinos where games are played only through modern machines or electronic devices.
II. Company Incorporation and Pre-Approval of Casino Business
1) Required Paid-up Capital
A person willing to operate a casino must maintain the following paid-up capital while establishing a company, as detailed below:
| For Large Casino | At least NPR 300 Million (in words Nepalese Rupees Three Hundred Million) |
| For Small Casino | At least NPR 200 Million (in words Nepalese Rupees Two Hundred Million) |
If a company operating a casino by obtaining a license under the prevailing law at the time of commencement of these regulations has not established the paid-up capital as mentioned above, it shall maintain such paid-up capital by the end of Chaitra, 2085 BS (12 April 2028).
2) Pre-approval Requirement
A person willing to operate casino business must obtain prior approval shall submit an application to the Department along with a fee of NPR 10,000 (in words Nepalese Rupees Ten Thousand only) , attaching the following documents and details:-
| S.N. | Description |
| a) | Written commitment from a four-star or higher rated hotel or resort to operate a casino on its hotel or resort premises |
| b) | The articles of association and regulations of the proposed company |
| c) | Shareholder, shareholding and their fund contribution details. |
| d) | Personal details of each director of the proposed company (citizenship certificate, passport or national identity card) |
| e) | Feasibility Study Report |
| f) | A financial and technical proposal |
| g) | If the casino is to operate within five kilometer of an international border, the applicant must submit the following documents : – A recommendation from the District Security Committee based on a security assessment – A security plan and proof of deploying at least 20 trained security personnel at the casino site. |
3) Refusal grounds of prior approval
Approval will not be given under the following circumstances:
| S.N | Description |
| a) | If any of the disqualifying conditions mentioned under the Tourism Act are present; |
| b) | A director of the proposed company is under 18 years of age; |
| c) | Capital requirements are not met; |
| d) | Required fees, documents and description are missing; |
| e) | More than one casino is proposed at the same hotel or resort; |
| .f) | Proposed casino location is within five kilometers of an international border and the applicant fails to meet the security standards required |
III. License and Renewal
A company that has obtained pre-approval from the Department and intends to apply for a casino license must fulfill the following infrastructure and fitness requirements before filing an application for pre-approval.
1) Infrastructure and Qualification (Fit and Proper Test) related requirements
Companies that have been established with prior approval must meet specific standards, including:
| S.N | Description |
| a) | Must have electronic surveillance systems to prevent theft and fraud. |
| b) | A system for maintaining damage/loss records and internal and external controls. |
| c) | Fire control system of at least 40 horsepower capacity. |
| d) | CCTV storage of six months and a secure room for storing footage. |
| e) | At least five trained security personnel for regular locations, and at least twenty for casinos within five kilometers of international borders. |
| f) | Use of walk-through gates, metal detectors, ID scanning, and biometric access control systems (face, retina, or thumb scan). |
| g) | Mechanisms for customer identification (KYC) and reporting per anti-money laundering laws. |
| h) | Recommendation from the District Police Office for casino operations. |
| i) | 24/7 live CCTV feed of all games conducted within the casino. |
| .j) | Real-time digital entry records and counterfeit detection and counting machines. |
| k) | Emergency evacuation systems and disaster response plans. |
| .l) | Ownership of at least five four-wheeled vehicles or agreement with a travel agency. |
| m) | On-site health personnel for first aid and medical emergencies. |
| n) | Arrangement for cultural programs and appropriate entertainment stages. |
| o) | Casino layout and decorations per international standards with separate staff and player entry/exit pathways, etc. |
A four-star or higher level hotel or resort where a casino is operated must meet in accordance with the prevailing laws.
2) Application for License
A company that has obtained pre-approval from the Department must apply for a casino license, and the related requirements are as follows:
(i) The application fees are as follows:
| Description |
| NPR 1.5 million for a large casino (in words Nepalese Rupees One Million Five Hundred Thousand only) |
| NPR 1 million for a small casino (in words Nepalese Rupees One Million only) |
(ii)The application must include the following documents:
| S.N | Description |
| i. | Copy of Company Registration Certificate |
| ii. | Copy of Memorandum of Association and Article of Association |
| iii. | Receipt of fee payment |
| iv. | Evidence showing that the consent given by the four-star or higher level hotel or resort for operating a casino within its premises is still valid |
| v. | Any directives issued during inspections by the Department, |
| vi. | Authorization letter if a representative submits the application |
| vii. | Foreign investment approval, if joint venture is involved |
(iii) The Department may conduct further inspections and will issue a license only if all conditions are met. If deficiencies are found, the company will be instructed to resolve them within a specified period.
(iv) Upon approval, the license fees are as follows:
| S.N | Description |
| i. | NPR 30 million (in words Nepalese Rupees Thirty Million only) for a large casino, |
| ii. | NPR 15 million (in words Nepalese Rupees Fifteen Million only) for a small casino. |
| iii. | Company that wants to operate more than one casino, fee for each casino as per (i) and (ii) |
(v) In addition to the license fee, the following financial obligations must be fulfilled:
| S.N | Description |
| i. | Applicable royalty amount as prescribed by the Finance Act, |
| ii. | A security deposit equal to 1.5 times the royalty amount, or a 14-month bank guarantee from a Class-A commercial bank |
| iii. | Proof of compliance with standards |
| iv. | Payment of application fees (NPR 10 million large, NPR 10 million small) |
| v. | Valid hotel consent, |
| vi. | Authorization for foreign joint ventures, if applicable. |
3) Renewal of license
A company must submit an application to the department along with the following documents:
| S.N | Description |
| i. | Proof of payment of royalty |
| ii. | Bank Guarantee of the same amount with a validity period of fourteen months from the date of issuance |
| iii. | Audit report of the previous financial year |
| iv. | Updated details and share records of the company’s directors and shareholders |
| v. | Copy of tax payment certificate of the previous fiscal year |
| vi. | Proof of depositing tax deductions from customers and employees into revenue account |
| vii. | Details of expenditure incurred for corporate social responsibility |
| viii. | Proof that the registration of the hotel/resort where the casino is operating has been updated |
4) Cancellation of license
Before canceling a casino license under this Act, the Department must publish a public notice and provide the licensee with seven days to submit an explanation. If no explanation is submitted within the prescribed period, or if the explanation provided is found to be unsatisfactory, the Department may proceed with canceling the license.
A company may also voluntarily apply for cancellation of its license, provided that it has settled all outstanding dues, including royalty, fees, penalties, fines, and any other liabilities. Once a license is canceled, the Department must inform the Office of the Company Registrar, the concerned Inland Revenue Office, and the Department of Industries.
IV. Rules and Conditions for Operating a Casino in Nepal
The Casino Regulations outlines various operational rules, security conditions, location requirements, and ethical standards that a company must follow while operating a casino in Nepal. Some of the key provisions are:
| S.N | Description |
| i. | Companies operating more than one casino at the time of this regulation must apply to operate only one casino. |
| ii. | Every casino must install a surveillance system approved by the Department, with clear facial visibility of all entrants. CCTV footage must be preserved for at least six months. |
| iii. | Casinos must not allow immoral, unethical, or criminal activities. Lending money or offering credit to gamblers is strictly prohibited. |
| iv. | Operations must respect Nepali culture, tradition, and social values, and games promoting unethical conduct are not permitted. |
| v. | Casinos must comply with existing money laundering laws and submit reports as required. |
| vi. | A casino cannot operate within five kilometers of an international border unless it meets specific security criteria. Casinos operating within three kilometers before the regulation may continue only if they comply with all updated requirements by the end of Chaitra, 2083 B.S (mid-April 2027). |
| vii. | Licensed casinos may request to change their hotel or resort location but must choose a four-star or higher facility and meet all legal standards to obtain departmental approval. |
| viii. | A large casino must employ at least 150 Nepali citizens, and a small casino must employ at least 50. |
| ix. | Operating or promoting online gambling games is prohibited. |
| x. | Promotion through any media (print, digital, audiovisual, etc.) inside Nepal is strictly prohibited. |
| xi. | The casino must regularly test water, beverages, and food provided to players through an authorized quality control agency. |
| xii. | The casino is expected to promote Nepali cuisine and operate only within the licensed resort premises. |
| xiii. | All instructions from the Department and Financial Information Unit must be followed. Casinos must cooperate with inspections and submit any requested documentation. |
V. Joint Venture with Foreign Company and Foreign Currency Transactions
A company that has obtained a casino operating license may operate the casino in joint venture with a foreign company, provided that it secures approval from the Ministry on the recommendation of the Department. In entering into such a joint venture, the company must comply with all prevailing laws governing foreign investment. Furthermore, if the casino operation requires transactions in foreign currency, the licensed company must obtain permission from Nepal Rastra Bank in accordance with applicable laws to conduct such foreign currency transactions.
Disclaimer: This article is for general informational purposes only and does not constitute legal advice, advertisement, personal communication, solicitation or inducement. No attorney-client relationship is created through this content. Gandhi & Associates assumes no liability for any consequences resulting from actions taken based on information contained herein.
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