The Supreme Court of Nepal has directed the government to explain why it has not taken action against the growing problem of online gambling and betting. The order came after a writ petition filed by three law students, who argued that online platforms are openly enabling criminal activities without any regulation, according to local media.
Petition filed against online gambling
Law students Subas Prasad Sah, Nisha Yadav, and Aarti Kumari Yadav submitted a petition to the Supreme Court seeking urgent measures to stop online gambling. They pointed out that under Section 125 of the Muluki Criminal Code, gambling and betting are crimes. Despite this legal provision, online platforms continue to allow gambling activities without restriction.
The petitioners argued that the unchecked spread of online betting is drawing ordinary people into criminal behaviour. They also highlighted that online advertisements and promotions are encouraging users to participate in gambling through social media platforms.
Court questions lack of action
A bench led by Justice Nityanand Pandey heard the case and observed that online betting is operating freely across the country. The bench noted that government agencies have failed to impose any restrictions despite the clear legal ban.
According to the court, organisations like the Cyber Bureau, Nepal Telecommunications Authority, and Advertising Board have not done enough to regulate gambling. The panel also noted that deceptive advertising on Instagram, TikTok, and Facebook Reels is exposing more people to gaming and betting.
Although the court declined to issue an immediate interim order halting gambling operations, it instructed the government to submit a detailed report. The court directed that the report must explain why the authorities have not controlled online gambling and betting until now.
Priority hearing ordered
The bench also ordered that the case be given priority status. This means that the matter will be heard quickly rather than going through the normal queue of cases.
The petitioners told the court that online gambling platforms are not only illegal but also harmful to society. They said these platforms are luring people into activities that could lead to criminal consequences. By filing the case, the law students sought judicial intervention to push government agencies into action.
Social media role under scrutiny
Concerns regarding social media’s role in promoting gambling were also brought up in the petition. The petitioners claim that social media platforms are now being used to advertise gambling apps and betting, which are prohibited under national legislation.
The students urged the court to issue directives to stop such content and hold platforms accountable for enabling access to gambling advertisements.
Regulatory reforms aim for transparency
Nepal’s government has taken key steps to strengthen the legal framework around gambling, especially in the land-based casino segment.
Casino Regulation 2080 BS
- The older 2013 framework has been replaced with the Casino Regulation 2080 BS to improve operational transparency. The new rules require:
- Minimum paid-up capital of NPR 300 million ($2.17 million) for large casinos and NPR 200 million ($1.44 million) for smaller ones
- Mandatory 24/7 CCTV surveillance, biometric entry systems, and strict Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance
- One casino licence per company and per hotel or resort, regardless of how many buildings it owns
- Casinos must be located within 5 km of border areas, subject to strict security clearances
- A mandatory two percent of net profits to be allocated to corporate social responsibility (CSR) projects in education, health, tourism, and environment sectors.
Anti-Money Laundering Directive (2025)
The Department of Tourism issued a directive in 2025 to prevent financial crimes in casinos. Known as the “Directive on Anti-Money Laundering and Combating Financing of Terrorism Related to Casino Operators,” it mandates casinos to report any individual spending NPR 1 million (approximately $7,265) or more in a single day. The directive applies to casino operators only and excludes banks and financial institutions.
