Online casinos are illegal for Nepalese citizens under Section 125 of the National Penal Code Act, 2074 (2017), which prohibits gambling on movable or immovable property in expectation of valuable returns. The law defines gambling as any game or process involving betting to gain, lose, or win property based on contingency (1). Those engaging in gambling for the first time face imprisonment up to three months or fines up to Rs. 30,000, while second-time offenders face imprisonment up to one year and fines up to Rs. 50,000 (1).
Land-based casinos are legal exclusively for foreign nationals under the Casino Regulation 2013, with operations permitted only in five-star or four-star hotels. The Ministry of Culture, Tourism and Civil Aviation grants casino licenses following approval processes that include foreign direct investment authorization from the Department of Industry (2). A proposed Integrated Tourism Bill introduced in 2025 seeks to reduce foreign ownership limits from 90 percent to 49 percent and enforce stricter location restrictions requiring casinos to be at least five kilometers from international borders (2).
"It is a prohibited act all over Nepal to gamble one's own movable or immovable property in expectation of some valuable return directly by oneself or through others."
Nepal has witnessed a surge in illegal online gambling cases involving platforms like 1xBet, with police raids recovering billions in transactions. In February 2025, authorities arrested 24 individuals conducting transactions worth Rs. 3.47 billion through eight betting applications, while in June 2025, several Nepali actors were charged for promoting 1xBet with transactions exceeding Rs. 740 million (1). These cases often involve associated crimes including cryptocurrency trading, money laundering, and illegal foreign exchange transactions (1).
Source:
https://lawbhandari.com/publication/gambling-and-betting-law-in-nepal-case-prosecution-steps
https://lawcaters.com/post/gambling-regulations-in-nepal/
Last updated: 13-10-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.
