Online Gambling Betting Law in Nepal March 17, 2026 - BY Admin

Online Gambling Betting Law in Nepal

Online gambling betting law in Nepal is governed by strict prohibitions under the National Penal Code 2074 (2017) and Public Gambling Act 1963. All forms of online gambling and betting are explicitly banned in Nepal, with only licensed land-based casinos permitted for foreign tourists. In November 2025, the Nepal Tourism Ministry issued a comprehensive directive declaring all online gambling illegal, mandating biometric identification for casino visitors and imposing strict AML/CFT compliance requirements.

For individuals and businesses, understanding Nepal gambling prohibition is essential to avoid severe criminal penalties including imprisonment and substantial fines. This guide examines the legal framework, recent enforcement actions, penalties, and defenses available for gambling-related offenses in Nepal.

What is Online Gambling Betting Law in Nepal?

Online gambling betting law in Nepal refers to the comprehensive legal framework that prohibits all forms of gambling and betting activities conducted through internet platforms, mobile applications, and digital payment systems. The National Penal Code 2074 (2017) Section 125 and Public Gambling Act 1963 establish the statutory basis for these prohibitions.

Under Nepali gambling legislation, gambling is defined as any game played with intent to gain or lose property based on chance or outcome of another party. Betting is considered a subset of gambling involving wagers on events such as sports matches. Both activities are criminalized under the same legal provisions.

Unlike some jurisdictions that regulate online gambling, Nepal maintains absolute prohibition. The Gambling Act 2008 and subsequent regulations make no distinction between physical and digital gambling—all forms are equally illegal unless specifically authorized by the government.

Legal Framework: National Penal Code 2074 Section 125

The National Penal Code 2074 (2017) serves as the principal legislation governing gambling and betting in Nepal. Section 125 contains comprehensive provisions criminalizing these activities.

Section 125(1) prohibits gambling and betting without government permission. Section 125(2)(5) explicitly bans all forms of gambling, making it a criminal offense punishable by imprisonment and fines.

Section 125(4)-(7) specifically address betting offenses:

Offense CategoryPenalty Provision
First-time GamblingUp to 3 months imprisonment OR fine up to NPR 30,000 OR both
Second-time GamblingUp to 1 year imprisonment AND fine up to NPR 50,000
Repeated OffensesAdditional 3 months imprisonment AND fine up to NPR 10,000 per repeat
Betting OffenseUp to 1 year imprisonment AND fine up to NPR 10,000
Organizing GamblingUp to 3 years imprisonment AND fine up to NPR 300,000

Property Confiscation: All tools, materials, and earnings from gambling activities are subject to confiscation by authorities under Section 125. This includes mobile devices, computers, and financial assets used in gambling operations.

Public Gambling Act 1963 and Gambling Act 2008

The Public Gambling Act 1963 was the first legislation to regulate gambling in Nepal, requiring land-based casino operators to obtain government licenses. This Act established the foundation for Nepal's casino regulations while prohibiting Nepali citizens from gambling.

The Gambling Act 2008 (also known as Gambling Act 2020 in some references) modernized gambling prohibitions and explicitly extended coverage to electronic gambling. This Act defines gambling as games of chance involving monetary stakes and establishes comprehensive penalties for violations.

Key Provisions:

Legal ProvisionContent
Gambling DefinitionGames of chance involving monetary stakes
Casino LicensingPermitted only for foreign tourists
Nepali Citizen BanAbsolute prohibition for nationals
Online GamblingExplicitly prohibited
Organizer Penalties1-3 years imprisonment, fines up to NPR 300,000
Participant PenaltiesUp to 3 months imprisonment, fines up to NPR 30,000

The National Gambling Policy reinforces these prohibitions by establishing that gambling activities remain illegal throughout Nepal without exception.

November 2025: Complete Ban on Online Gambling

In November 2025, the Nepal Tourism Ministry under the Ministry of Culture, Tourism and Civil Aviation issued a landmark directive declaring all forms of online gambling illegal in Nepal. This decision was made to reduce money laundering risks and ensure transparency of cross-border payments.

Key Directive Provisions:

Regulation AreaNew Requirement
Online GamblingComplete prohibition nationwide
Casino OperationsBiometric identification mandatory for all players
Surveillance24-hour CCTV coverage of all gaming areas
AML ComplianceStrict Anti-Money Laundering and CFT documentation
Currency ControlsForeign currency transactions require Nepal Rastra Bank permission
Record KeepingCCTV footage stored for minimum 6 months
Third-party ManagementProhibition on indirect casino operation

The directive mandates that casinos operate strictly under Casino Regulations 2082, with stringent Know Your Customer (KYC) requirements and biometric identification systems. Operators must maintain and regularly update bettors' identity details, including biometric data, and make this available to the Tourism Department on demand.

Illegal Online Gambling Apps Surge in Nepal

Following India's nationwide ban on online gambling in 2024, a significant surge of foreign gambling apps has entered Nepal. These platforms operate freely despite strict national prohibitions, exploiting gaps in Nepal's cyber laws and limited monitoring of digital payments.

Notable Illegal Platforms:

Platform NameDescriptionOrigin
Khalti88 (K88)Nepali-language app with local influencersRegistered in Curaçao
IME88"Nepal's best gaming app" marketingInstagram promotion
JW8 NepalSports betting and casino gamesSocial media targeting
JayaBazi Online CasinoSign-up bonuses up to NPR 25,000TikTok/Instagram ads
1xBetInternational betting platformPreviously operating in India
Juwa 365Mobile gambling applicationOffshore operation
Wolf777Online casino and bettingDigital wallet integration

These platforms use Nepali banking channels for deposits and withdrawals, exploiting weak monitoring mechanisms. They rely on Facebook, Instagram, and TikTok to lure users, taking advantage of lax social media regulation.

Police Arrest Statistics:

Fiscal YearTotal ArrestsNotable Details
2020/212 arrestsOnline betting cases
2021/2222 arrestsIncluding 4 for IPL betting via 1xBet
2022/2351 arrests13 foreigners; apps: Cash App, WhatsApp Cash, Wolf777
2023/24147 arrests55 Nepalis, 92 foreigners; crypto exchange links

The sharp increase in arrests reflects growing enforcement attention to online gambling offenses in Nepal.

Enforcement Mechanisms and Agencies

Online gambling enforcement in Nepal operates through multiple agencies with coordinated jurisdiction:

Nepal Police and Central Investigation Bureau (CIB):
The CIB investigates serious cases of online gambling and advertising of prohibited materials. Local police units act on individual complaints and conduct raids on gambling operations.

Cyber Bureau Kathmandu:
The Cyber Bureau handles complaints related to online gambling and advertising of prohibited materials. Officers act on received complaints to investigate digital gambling activities.

Nepal Telecommunications Authority (NTA):
The NTA blocks foreign online gambling websites under the Telecommunications Act 1997. The authority has taken proactive steps to restrict access to gambling platforms targeting Nepali citizens.

Nepal Rastra Bank (NRB):
Under Section 95 and 96 of the Nepal Rastra Bank Act 2058, the central bank regulates foreign exchange transactions and electronic payments. The NRB has issued directives banning online gambling and betting, especially when linked to cryptocurrency platforms.

District Government Attorney:
Prosecutes gambling cases under Schedule-1 of the Penal Code, presenting offenders before courts within 24 hours of arrest.

Penalties for Online Gambling and Betting Offenses

Penalties for online gambling in Nepal are severe and escalate based on offense severity and repetition:

Standard Gambling Penalties:

Offense TypeImprisonmentFineAdditional Penalties
First-time GamblingUp to 3 monthsUp to NPR 30,000Confiscation of gambling materials
Second-time GamblingUp to 1 yearUp to NPR 50,000Enhanced monitoring
Repeated Gambling+3 months per repeatUp to NPR 10,000 per repeatPermanent criminal record
BettingUp to 1 yearUp to NPR 10,000Forfeiture of bet amount

Organizer and Promoter Penalties:

Offense TypeImprisonmentFineAdditional Penalties
Organizing GamblingUp to 3 yearsUp to NPR 300,000Confiscation of all proceeds and equipment
Promoting GamblingCase-by-caseBased on Advertising ActSocial media platform liability
Online Gambling OperationsUp to 7 yearsUp to 3x transaction valueAsset seizure, account freezing

Cryptocurrency Gambling Penalties:
Under Section 96 of NRB Act, using cryptocurrency for gambling carries:

  • Fine up to three times the value of illegal transaction
  • Imprisonment up to 7 years
  • Confiscation of all assets involved

Property Seizure:
Courts order confiscation of:

  • Mobile phones and laptops
  • ATM and Aadhaar cards
  • Bank accounts and crypto wallets
  • All money and gambling materials

Advertising and Promotion Prohibitions

The Advertising (Regulation) Act 2019 specifically prohibits promotion of gambling services. Section 5(b) empowers authorities to fine those promoting banned content, including gambling.

Prohibited Activities:

ActivityLegal BasisPenalty
Social Media Gambling AdsAdvertising Act 2019Fines and content removal
Influencer PromotionSection 5(b)Personal liability for promoters
Telegram/WhatsApp Betting GroupsGambling Act + Cyber lawsCriminal prosecution
Website PromotionTelecommunications ActDomain blocking

Social Media Platform Liability:
Advocate Santosh Sigdel, Executive Director of Digital Rights Nepal, has argued that social media platforms must be held accountable for gambling advertisements. According to a November 2025 Reuters report, Meta projected approximately 10% of global revenue (around $16 billion) from ads for scams and banned goods.

However, Nepal currently lacks adequate laws to regulate such activities. No provisions exist to make social media platforms accountable for hosting gambling advertisements.

Casino Regulations: Foreigners Only

Licensed casinos in Nepal operate under strict regulations that explicitly exclude Nepali citizens:

Casino Regulation Act 2013 Requirements:

RequirementSpecification
Player EligibilityForeign tourists only (passport required)
Nepali Citizen BanAbsolute prohibition with criminal penalties
LicensingGovernment authorization required
LocationDesignated tourist areas only
Age Limit18+ years (foreigners only)
Biometric KYCMandatory under 2025 directive
24-hour SurveillanceCCTV coverage of all gaming areas
Profit Tax DeductionCompulsory withholding on winnings

Casino Operations Under Casino Regulations 2082:

The 2025 directive mandates that casinos:

  • Use biometric identification for all players
  • Maintain 24-hour video recordings of gaming rooms
  • Submit AML and CFT documentation regularly to Tourism Department
  • Obtain Nepal Rastra Bank permission for foreign currency transactions
  • Issue deduction certificates for profit tax withholding
  • Prohibit third-party management agreements

Violations result in license suspension, fines, and potential criminal prosecution.

Legal Defenses for Gambling Accused

Individuals accused of gambling offenses in Nepal may present several legal defenses:

Defense 1: Lack of Knowledge
Property owners who demonstrate lack of knowledge that premises were used for gambling may avoid liability. Proper tenant screening and lease agreements help establish due diligence.

Defense 2: Cultural Festival Exception
Playful activities involving petty cash during public festivals, carnivals, and exhibitions—when permitted by Nepal Government as cultural activities—are not considered gambling.

Defense 3: First-time Offender Mitigation
Courts have discretion to impose fines instead of imprisonment for first-time offenders, particularly participants rather than organizers. Engaging a lawyer to present mitigating circumstances increases possibility of avoiding imprisonment.

Defense 4: Procedural Violations
If police failed to follow proper arrest procedures under Section 6 of Gambling Act (24-hour presentation before court), evidence may be challenged.

Defense 5: Lack of Evidence
Insufficient evidence of gambling intent or monetary stakes may result in acquittal.

Defense 6: Authorized Lottery Participation
Participation in Nepal Lottery Board authorized state-controlled lotteries is legally permitted and constitutes valid defense against gambling charges.

Frequently Asked Questions (FAQs)

Is online gambling legal in Nepal?

No, all forms of online gambling are illegal in Nepal. The National Penal Code Section 125, Public Gambling Act 1963, and November 2025 Tourism Ministry directive explicitly prohibit online gambling, betting apps, and digital casino platforms. Offenders face imprisonment up to 3 years and fines up to NPR 300,000.

What are the penalties for online betting in Nepal?

Online betting penalties include imprisonment up to 1 year and fines up to NPR 10,000 for betting offenses. Organizers face up to 3 years imprisonment and NPR 300,000 fines. Using cryptocurrency for gambling carries penalties up to 7 years imprisonment and fines up to 3x transaction value.

Can Nepali citizens enter casinos in Nepal?

No, Nepali citizens are absolutely prohibited from entering casinos. Licensed casinos operate only for foreign tourists with valid passport identification. Nepali citizens found in casinos face arrest, fines, and imprisonment under gambling prohibition laws.

Are there any legal gambling options in Nepal?

Only authorized state-controlled lottery operations through Nepal Lottery Board are legally permitted. All other gambling activities—including casinos for Nepalis, online betting, sports betting, and private gambling—are strictly prohibited.

What is the November 2025 online gambling ban?

The November 2025 directive by Nepal Tourism Ministry declared all online gambling illegal, mandated biometric KYC for casino visitors, imposed 24-hour CCTV surveillance, and required strict AML/CFT compliance to prevent money laundering.

Can police arrest for online gambling without warrant?

Yes, Section 6 of the Gambling Act authorizes police to arrest individuals found engaging in gambling activities without warrant. Arrested persons must be brought before court within 24 hours, excluding travel time.

What happens to money seized in gambling raids?

Section 7 of the Gambling Act requires courts to confiscate all money and gambling materials seized during raids. Confiscated money becomes government property and is deposited in government treasury after case conclusion.

Are gambling apps like Khalti88 and IME88 legal?

No, these apps operate illegally in Nepal. Despite Nepali-language marketing and local influencer promotion, platforms like Khalti88, IME88, JW8 Nepal, and JayaBazi are unregistered offshore operations violating Nepal's gambling prohibitions. Users and promoters face criminal prosecution.

Can property owners be liable for tenant gambling?

Yes, property owners can face prosecution if they knowingly provide premises for gambling. However, owners demonstrating lack of knowledge and reasonable preventive measures may avoid liability through proper lease agreements and tenant screening.

How can I report online gambling in Nepal?

Online gambling can be reported to Nepal Police, Central Investigation Bureau (CIB), Cyber Bureau Kathmandu, or Nepal Telecommunications Authority (NTA). Complaints may be filed regarding apps, websites, social media promotions, or physical gambling operations.

Conclusion: Navigating Nepal's Strict Gambling Prohibitions

Online gambling betting law in Nepal maintains absolute prohibition of all gambling and betting activities for Nepali citizens. The National Penal Code 2074 Section 125, Public Gambling Act 1963, and November 2025 Tourism Ministry directive establish comprehensive bans with severe criminal penalties.

Recent enforcement actions demonstrate increasing government attention to online gambling offenses, with 147 arrests in 2023/24 and coordinated efforts by Nepal Police CIB, Cyber Bureau, NTA, and Nepal Rastra Bank to block platforms and prosecute offenders.

For individuals accused of gambling offenses, understanding available legal defenses—including lack of knowledge, cultural festival exceptions, and procedural challenges—becomes essential. However, the safest approach remains complete avoidance of all gambling activities given Nepal's strict legal framework.

Businesses must ensure strict compliance with AML/CFT requirements, biometric KYC protocols, and advertising prohibitions to avoid criminal liability in Nepal's evolving gambling enforcement landscape.

Facing Gambling Charges or Need Legal Defense?

Attorney Nepal PVT LTD specializes in criminal defense for gambling offenses, cybercrime cases, and regulatory compliance matters. Our experienced legal team defends clients accused of online gambling, betting operations, and gambling-related prosecutions.

Contact us today for confidential consultation:

  • Phone: +977-9768717747
  • Email: info@attorneynepal.com
  • Office: Kathmandu, Nepal

Protect your rights. Secure expert defense.

Disclaimer: This blog provides general legal information for educational purposes only and does not constitute legal advice. Laws change frequently, and individual circumstances vary. Consult a qualified attorney for specific legal guidance. Gambling is illegal in Nepal—this content aims to inform about legal prohibitions rather than encourage prohibited activities.

References

  1. National Penal Code 2074 (2017) - Nepal Law Commission - Official Legislation
  2. Public Gambling Act 1963 - Nepal - Historical Gambling Law
  3. Nepal Tourism Ministry - Casino Regulation Authority
  4. Nepal Rastra Bank - Financial Regulation
  5. Nepal Telecommunications Authority - Internet Regulation
  6. Central Investigation Bureau Nepal Police - Law Enforcement
  7. Digital Rights Nepal - Cyber Law Advocacy
  8. The Himalayan Times - News Authority on Gambling Surge