Nepal's casino market rises, small players struggle: Expert
Nepal is no longer just a land of soaring Himalayan peaks, lush valleys, and rich cultural heritage. It is rapidly emerging as a formidable player in Asia’s gaming and casino landscape. The country’s gaming market is projected to maintain a robust compound annual growth rate (CAGR) of 10.7 percent from 2020 to 2026.
In July 2025, Nepal’s Department of Tourism introduced the Directive on Anti-Money Laundering and Combating the Financing of Terrorism Related to Casino Operators. Under this directive, casinos are required to report any individual spending NPR 1 million ($7,400) or more in a single day to the Financial Information Unit within 15 days, using the GoAML system.
At the same time, the Casino Regulation 2080 BS significantly raised entry requirements for operators. The new rules mandate a paid-up capital of NPR 200 million ($1.44 million) for smaller electronic casinos and NPR 300 million ($2.17 million) for larger, resort-style venues.
To better understand the impact of these reforms for Nepal’s rapidly expanding gaming market, SiGMA News dives deep with John Calderon, an iGaming consultant. Calderon explores how these regulatory shifts and demographic trends are shaping strategy, sustainability and the future of Nepal.
SiGMA News: According to iGamingToday, Nepal’s gaming market is projected to grow at a CAGR of 10.7 percent from 2020 to 2026. What are the key factors driving this growth?
John Calderon: The gambling and entertainment markets in Nepal are growing rapidly. This is mainly because more people have access to the internet, have higher incomes, and can afford smartphones.
The use of smartphones and the internet has significantly boosted online gambling, not just in Nepal, but in many Asian countries. These factors make it easier for people in Nepal to participate in gambling, which is contributing to the country’s thriving online gambling industry.
SiGMA News: With roughly 85 percent of online gamblers in Nepal being male and only 15 percent female, and most users concentrated in the 18–30 age group, how do you evaluate this demographic? What are the strategic implications for operators in designing games, shaping marketing strategies, enforcing responsible gaming practices, and ensuring long-term sustainability?
Calderon: As an advocate for localisation, I advise operators to add familiar games locally such as Ludo and Andar Bahar or even Poker as it creates engagement to the community. This is because players already know and love these games.
Additionally, this young demography is looking for engagement and instant wins. Operators should also consider adding familiar payment methods for easier payouts. Most importantly, operators should implement responsible gambling tools that help their players to gamble responsibly.
SiGMA News: Given Nepal’s proximity to major markets like India and China, how attractive is the country as a potential iGaming hub?
Calderon: Nepal’s strategic location between India and China offers significant potential for developing as an iGaming hub in Asia. However, both neighboring countries are intensively cracking down on illegal offshore gambling, creating substantial legal and regulatory challenges.
To succeed, Nepal would need to establish clear and effective regulations while fostering regional cooperation. In the end, although promising, Nepal must carefully navigate these obstacles to become a trusted player in the Asian iGaming industry.
SiGMA News: Nepal recently mandated stricter anti-money laundering rules under the 2025 directive, requiring casinos to report any individual spending over NPR 1 million ($7,400) in a day. What’s your take on this threshold and its impact on the industry?
Calderon: It’s a hard pill to swallow for casino operators due to additional costs and operational changes, but this new rule will create transparency and help the country prevent money laundering, and will enhance the integrity of Nepal’s gambling industry and bring it in line with international standards.
SiGMA News: Nepal has replaced its 2013 casino framework with the new Casino Regulation 2080 BS. In your view, how will the increased capital requirements and stricter compliance measures reshape the casino industry?
Calderon: The new rules for casinos in Nepal will make it harder for small casinos to operate due to the need for a large amount of money to run their businesses. But for bigger operators, they only need to run their businesses cautiously and be more transparent to the government.
And this could be a good thing because it makes the casino industry more trustworthy and less prone to illegal activities. This change will likely make the industry safer and more stable.
SiGMA News: With casinos now permitted within 5 km of borders under strict security, do you see this boosting cross-border tourism, or does it raise regulatory and enforcement concerns?
Calderon: As I understand, the area where casinos are not allowed near international borders will increase from 3 km to 5 km. This change might lead to fewer casinos and fewer gambling tourists.
It may have little effect on the country’s overall economic benefits. However, it could help reduce problem gambling, which I believe will be a positive outcome for the country and the community.
SiGMA News: The regulation limits one casino licence per company and mandates 2 percent of net profit for CSR. How might this impact market consolidation, and are such CSR mandates feasible for all operators?
Calderon: This new regulation limiting one casino licence per company favors bigger operators because they can afford to get multiple licences. However, smaller companies may find it hard to compete under these rules.
The 2 percent Corporate Social Responsibility requirement is also easier for larger, profitable companies, which will help them stay strong and gain more market share. These rules make it easier for big companies to grow, but it will be a real challenge for smaller operators.
