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Gambling Laws in Nepal

Before gambling online in Nepal, it is vital to be aware of the regulations governing it. This will help you avoid breaking the law and facing penalties or fines. The Nepali government has declared online gambling illegal. However, players still play at many offshore casino sites.

We created this article to help you be better informed about the laws surrounding online gambling. In this guide, you’ll find the definition of gambling according to Nepal laws and also all the important laws to be aware of. Whether you’re a tourist or a resident, you will find this article helpful, so keep reading!

Table of Contents

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History of Gambling Regulations in Nepal

Gambling has been an important part of Nepali history. Traditional gambling games have been a form of entertainment for centuries, including in some of the local festivals. However, as time went on, the government declared it illegal. While land-based casinos are legal, they must adhere to specific regulations. For example, they are only open to tourists.

The good news is Nepali players can still enjoy playing casino games online. No clear laws exist regarding the online gambling industry. So, players who gamble online are not exactly committing a crime. 

The first law to disrupt the free flow of gambling activities in Nepal was the Gambling Act of 1977. The Act required land-based casino operators to have a license. It also provided strict regulations and banned locals from gambling within Nepal’s borders. The Act quickly became a subject of heartache as it made demands such as licensing fees. In 2013, the government enacted the Casino Regulations, which brought even more requirements. Many casinos shut down because they could not cope with the regulations, dues, and fees that came with the laws. 

Years later, things are the same, and casino operators have to spend thousands of rupees to get a license. It is still illegal for Nepali citizens to gamble within the country. Offenders are subject to fines and imprisonment; the details of this law are in the sections below.

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What Is Gambling in Nepal?

The Nepal National Penal Code defines gambling as “the participation in a game or activity that involves betting with the possibility of gaining, losing, or winning Property or other valuables solely on Chance.” The law also includes bets made by persons who are not involved in gambling but may lose property based on this activity. 

Some activities are like gambling but aren’t illegal in Nepal. They include: 

  • Government-approved games that are solely for entertainment may be held during public events like festivals and exhibitions. 

  • Lottery games that are authorized and regulated by the appropriate authority. 

The Act defines “One who Causes anyone to Gamble” as “an individual or an entity who facilitates gambling by knowingly providing a venue, room, space, or vehicle under their ownership, possession, or use or by providing tools or equipment for Gambling Purposes, which is also known as a gambling operator.”

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Nepal's Gambling Laws

The laws of Nepal prohibit gambling. According to the law, it is also illegal to wager your property in expectation of a valuable return. The person or entity responsible for providing a venture for the gambling activity is liable under the code. Anyone who gives property in their ownership or possession for gambling is also liable. When caught, every item used for gambling may be confiscated, although the items do not include the building or vehicle where the gambling was done. 

Gambling law offenders risk imprisonment for three months or a fine. Second-time offenders may receive a higher fine or one year in prison. Repeat offenders face imprisonment for one year and three months and a fine of 50,000 rupees. To avoid punishment, gambling operators must get approval from the proper authorities. Anyone who witnesses gambling activity must inform concerned authorities about it. 

Important Laws 

The following laws are important to gambling in Nepal:

  • Country Criminal Code Act 2070 (2017) Section 125: Prohibition on Gambling and Betting

  • Country Criminal Procedure Code Act 2070 (2017): Duty to give information about any offense

  • Casino Regulation 

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Betting laws in Nepal 

Betting is a gambling activity where an individual may gain or lose movable or immovable property and other considerations worth money. Betting is usually done in relation to a sports game, and bettors win when a party wins.

Although both are prohibited, there is a slight difference between gambling and betting in Nepal. Both have been criminalized under the same National Penal Code. Section 125 (4) -(7) provides for illegal betting. Subsection 4, in particular, makes betting or encouraging betting illegal. 

Individuals who are found guilty of betting are liable to imprisonment and a fine. The imprisonment is stipulated for one year and a fine of 10,000 rupees. The Nepal criminal code does not provide for online betting.

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Future of Online Gambling Laws in Nepal

The future of gambling in Nepal looks at even more openness towards tourists. If the government benefits from marketing towards tourists, it may continue that way. But, it is unlikely that all forms of gambling will become illegal again. There is some hope that the government will make gambling accessible to local gamblers, too. Until then, Nepali gamblers have considered online casinos to be the best alternative. They can stream live casinos from their mobile devices and enjoy gambling games. Being able to access casinos from your home makes the experience exciting. Many offshore online casinos accept Nepal players, so there are safe casinos out there.