Nepal is quickly emerging as a hub of casino tourism in the Indian subcontinent, thanks to deep digital penetration and supportive government regulations. The country is now attracting tourists with its land-based gambling and iGaming propositions.
Nepal Gambling Industry Flourishing: Quick Overview
- The online gambling industry in Nepal is rising at an average Compound Annual Growth Rate (CAGR) of 10.7%. This is fuelled by internet accessibility, digital payment systems, and growing smartphone use.
- While land-based gambling operations are regulated in Nepal, online gambling is in the grey area. In the absence of licensed operators, Nepali consumers visit offshore gambling platforms.
- Land-based gambling operations in Nepal are flourishing thanks to the tourism industry, with most casinos operating out of hotels in key tourist hubs and border towns with neighbouring India.
Factors Behind Nepal’s Thriving Gambling Market
According to independent market research, Nepal’s gambling sector, including both land-based and online, is expanding at an estimated 10.7% CAGR between 2020 and 2026. This growth is primarily attributed to internet penetration, smartphone accessibility, digital payment systems, and disposable incomes.
According to market projections, Nepal’s gambling market is expected to see significant growth in both revenue and user base, with revenue projected to reach US$416.90m in 2025 and the number of users expected to total 2.4 million by 2029.
Both land-based and online gambling operations are leading this change. While the government regulates brick-and-mortar gambling in Nepal, the online gambling industry operates outside the government’s purview. Therefore, Nepali consumers regularly visit offshore gambling platforms.
However, due to the lack of organised data, it is difficult to gauge the full scale of iGaming operations and market valuation. Land-based gambling, on the other hand, has flourished on the back of the tourism industry. Most Nepalese casinos are located inside resorts in key tourism hubs, catering to international visitors.
Locals, however, visit offshore gambling platforms as they are more easily accessible. According to the same research, the majority of domestic gamblers in Nepal are below 35 years of age. This demographic is more familiar with smartphones, the internet, and digital payments. While men account for a majority of gambling activity, women are not far behind.
Younger players prefer accessible casino games like slots, fantasy sports, and eSports. Older users mostly prefer traditional casino games like poker and roulette. Sports betting is popular among all ages, with cricket and football emerging as the two clear favourites. While land-based gambling is most prevalent in urban areas due to the physical presence of casinos and better internet access, rural regions are gradually catching up as mobile networks expand and digital payment systems become more accessible. Offshore platforms, powered by prominent casino software providers, are increasingly attracting rural players, but urban areas remain the primary hub for gambling activity in Nepal.
Land-based casino operations in Nepal are relatively consolidated, with a small number of operators managing a majority of the licensed venues. The new gambling regulation is expected to prevent further market saturation.
The Need for Regulatory Reforms to Build a Sustainable Future
While the government has laid out clear guidelines for land-based gambling operators to follow, online gambling regulations have yet to follow suit. The Department of Tourism issued a directive in 2025 to prevent money laundering through casinos.
The Directive on Anti-Money Laundering and Combating Financing of Terrorism Related to Casino Operators mandates casinos to report individual spending of over NPR 1 million (approximately $7,265) in a day. This directive only applies to casinos and not to banks and other financial institutions.
The Casino Regulation 2080 BS replaces the 2013 framework, improving operational transparency. The changes include:
- The minimum paid-up capital for larger casinos is set at NPR 300 million (approximately €1.8 million) while that for smaller casinos is NPR 200 million (approximately €1.2 million).
- Casinos must ensure 24/7 CCTV surveillance, biometric entry systems, and KYC and AML compliance.
- Casino operators are limited to one location per licence.
- Casinos must be located within 5 km of international borders.
- A standard 2% of net profits must be allocated to CSR projects in health, tourism, education, and environmental sectors.