Nepal’s Ministry of Culture, Tourism and Civil Aviation has amended the Casino Regulations, 2025, setting forth provisions to impose charges depending on the casino’s size and scale of expansions and modifications. The Casino Regulations, 2026 set forth provisions to impose charges of NPR 5 million to NPR 30 million for the expansion of casinos’ capacity with modifications in licensing fees, royalties, bank guarantees and government revenue.
The amended regulations were published in the Nepal Gazette, introducing procedures to upscale small casinos to larger ones and expand the approved capacities of existing casinos. Existing casinos must obtain the necessary approvals and fulfill the requirements of the government to expand the gaming areas, add tables and equipment and upgrade the category of the casino.
New Rules Charge Varying Amounts for Expansions to Capacity
The amended regulations stipulate that depending on the category of the casino and the scale of the proposed expansion, fees should be charged from the operator. Thus, small casinos that intend to expand their approved capacities by up to 50 percent must pay NPR 5 million. In the event that the proposed expansion of a small casino exceeds 50 percent of the approved capacity, the applicable fee shall be NPR 15 million.
Large casinos that intend to increase their capacities by up to 50 percent would be charged NPR 15 million. The applicable fee for expanding a large casino by more than 50 percent of the approved capacity shall be NPR 30 million. The amended regulations stipulate that the larger the scale of a casino’s expansion, the higher the required fees.
Approval from the Department of Tourism Required
A casino operator that intends to expand the area of their gaming venue to increase the approved capacities must apply to the Department of Tourism. The Department of Tourism shall conduct an inspection and supervision of the expanded area of the casino to determine whether the standards prescribed by the amended regulations are met.
The department will conduct inspections and supervision of the number of gaming tables and equipment in the additional area. The Department of Tourism will only approve expansion if it determines that the standards prescribed by the regulations are met. Under the amended regulations, a casino operator may apply for permission to use the additional area to expand the gaming area by the approved capacity, provided that they have additional space. A casino operator may also apply to add tables and equipment or upgrade a small casino to a large casino.
Amendments Specify Charges, Royalties, and Bank Guarantees
The amended regulations also stipulate that in addition to increasing the fees for increasing the approved capacities for small and large casinos, large casinos must pay any deficit in the prescribed amounts for the licensing fee, royalties, and bank guarantees. The provisions also specify that a casino operator who has paid the renewal fee for the current fiscal year shall adjust it accordingly.
Amendments provide a clearer framework for the operation of casinos and regulation of the gambling industry in line with the requirements of tourism and hospitality. In accordance with the new rules, a casino operator must apply for approval to expand the gaming area, conduct inspections, and meet the required standards.
The provisions also stipulate that the required fees for increasing the capacities of small and large casinos shall be charged. The Department of Tourism will review the application for expansion of an existing casino or an upgraded casino to determine whether the standards are followed.
Impact of Amendments on Nepal’s Hospitality Industry
Casinos contribute to the tourism and hospitality sector through their close ties to the hotel industry and the influx of foreign tourists. Amendments to the casino rules could have a direct impact on casino owners considering upgrading or expanding their gaming venues. In accordance with the amended regulations, a casino owner must meet the required standards to expand the gaming area.
The amendments provide a clear framework for the operation of casinos and gambling in general. Changes in the rules on the expansion of casinos and the introduction of additional requirements for their operation may affect the conditions for the functioning of the gambling industry. The amended regulations do not make it clear whether any casino has received approval for expansion or is about to open.
