Nepal's gambling sector is projected to expand by 10.7% by the year 2026.
In a bid to strengthen its anti-money laundering (AML) measures and ensure compliance, Nepal has introduced a series of reforms in its gambling industry and casino tourism sector. These changes, implemented in 2025, aim to address concerns about casinos near international borders being vulnerable to money laundering due to their cash-heavy transactions and large numbers of foreign gamblers.
Under the new Casino Regulation 2080 BS, casinos must establish internal monitoring systems, perform risk assessments, and carry out enhanced due diligence to identify politically exposed persons (PEPs) and trace sources of gambling funds. Casinos are also required to report any customer transactions exceeding NPR 1 million within a 24-hour period to Nepal’s Financial Information Unit through the GoAML platform within 15 days.
To enhance security, the minimum paid-up capital requirement for casino operators has been raised to NPR 200 million, alongside increased licensing fees and a mandate to have a minimum of 20 trained security personnel. Additional operational requirements include maintaining 24-hour game surveillance, retaining footage for six months, preserving visitor records for five years, installing biometric ID verification at entries, and improving know-your-customer protocols.
These reforms are part of Nepal's efforts to comply with the Financial Action Task Force (FATF) AML/CFT standards and seek removal from FATF’s "grey list" of higher-risk jurisdictions.
Meanwhile, the online gambling market in Nepal remains fragmented and is mostly controlled by offshore companies. In an attempt to regulate this field, the government passed the Promotion and Regulation of Online Gaming Bill, 2025, which aims to ban all online real-money games and prohibit related advertisements. The bill, however, has raised concerns in the industry, especially around skill-based games that were previously protected under constitutional rights.
The land-based casino market in Nepal, on the other hand, is highly consolidated, with most establishments owned by a limited number of operators. Startups and international companies are exploring AI and VR to enhance user experience and gain a competitive edge in the online gaming market.
In a move to increase industry transparency, the new regulation also mandates a 2% clean profit contribution for education, health, tourism, and environmental conservation projects. Furthermore, to maintain market structure and prevent oversaturation, the regulation restricts one license per operator. Casinos must also be located within 5 km of the border, subject to strict security checks.
These changes mark a significant shift in Nepal's gambling industry, with a focus on transparency, security, and compliance. The government's efforts to comply with international standards and address money laundering concerns are expected to have a lasting impact on the sector.
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