Nepal’s Department of Tourism has introduced a comprehensive directive aimed at curbing financial crimes within the casino sector. According to local media outlet, the “Directive on Anti-Money Laundering and Combating Financing of Terrorism Related to Casino Operators (Designated Non-Financial Businesses), 2025” mandates stricter compliance measures to detect and prevent money laundering and terrorist financing.
Key provisions of the new directive
This directive applies specifically to casino operators, excluding banks and other financial institutions. A central feature is the introduction of a reporting threshold: casinos must report any individual who spends NPR 1 million (approximately USD 7,265) or more in a single day, whether through a single transaction or multiple transactions.
This includes purchases of chips, VIP room payments, and large cash exchanges. This measure is intended to help identify potentially suspicious financial activity. Casinos are required to submit these reports to the Financial Information Unit (FIU-Nepal) within 15 days via the GoAML system.
Enhanced due diligence and risk management
Casino operators must now implement robust Customer Due Diligence (CDD) procedures, establish internal control systems, and conduct risk assessments. This entails confirming the identities of clients, keeping an eye on transactions, and locating beneficial owners and politically exposed persons (PEPs).
Due to their predominantly cash-based operations, casinos—particularly those located near Nepal’s borders have been linked to illicit financial flows. The high volume of foreign visitors, especially from China and India, has raised concerns about cross-border money laundering.
Nepal enacts Casino Regulation 2080
In response to the rapid growth of the casino industry, the Government of Nepal has enacted the Casino Regulation 2080 BS, replacing the 2013 framework. The regulation aims to enhance financial transparency, improve operational standards, and tighten regulatory oversight.
The new regulations introduce increased paid-up capital requirements, revised licensing fees, enhanced security protocols, and specific restrictions for casinos situated near international borders. These changes are expected to affect both prospective investors and existing operators.
Key changes in capital, licensing, and security
The updated rules differentiate between large and small casinos. The minimum paid-up capital for small casinos—primarily operating electronic gaming setups—has been raised from NPR 150 million to NPR 200 million. Larger casinos, which offer a broader range of services including table games, must now increase their capital from NPR 250 million to NPR 300 million. This adjustment aims to ensure that only financially capable operators enter or remain in the market.
Application and licensing fees have also seen a significant rise. For small casinos, the application fee is now NPR 1 million, with a licence fee of NPR 15 million. In contrast, large casinos face an application fee of NPR 1.5 million and a licence fee of NPR 30 million. These increases are intended to secure long-term operator commitment and generate greater government revenue. However, the higher costs may pose challenges for local entrepreneurs.
All casinos must employ a minimum of 20 trained security personnel, certified by recognised security agencies. This measure is intended to enhance surveillance, crowd control, and overall safety.
Additionally, a single hotel or resort may hold only one casino licence, regardless of the number of buildings or wings. This is designed to prevent market saturation and maintain quality standards in tourism hubs.
Border area casino approvals
Casinos may now operate within five kilometres of international borders, subject to approval by the District Security Committee. These committees will assess law enforcement coordination, surveillance capabilities, and public safety before granting permission.
The Ministry of Tourism is responsible for issuing licences, while regional financial and security bodies will oversee compliance. Regular audits and inspections are mandated to ensure adherence to the new rules.
While the regulations are expected to stabilise operations and improve transparency, the increased costs may pose challenges for local investors. Over the next two to three years, casino operators will need to align with these new compliance standards to continue operating legally.
