The government has issued a set of 12 directives aimed at bringing casinos—operating as a commercial recreational sector—under stronger legal regulation.
The Department of Tourism, under the Ministry of Culture, Tourism, and Civil Aviation, has emphasized that all currently operating casinos must fully comply with the Anti-Money Laundering Act and all its provisions.
The department stressed that casino operators must strictly follow the directives issued to them regarding the prevention of money laundering and the financing of terrorist activities.
The department reminded casinos that they are prohibited from engaging in foreign currency transactions without obtaining approval from Nepal Rastra Bank for foreign exchange operations. According to the Casino Regulation 2013 (2070 B.S.) and directives issued by the department on preventing money laundering and terrorist financing, casinos must regularly submit required reports to the department.
Casinos must update customer identification systems (KYC), including biometric information of players, based on prescribed standards and provide these details whenever requested by the department. They must also retain CCTV footage recording all activities within casino premises for at least six months.
Casinos are prohibited from operating through third-party agreements or by any other indirect means. They are also strictly forbidden from operating in locations other than the one specified in their license.
Before paying out winnings to players, casinos must deduct the applicable withholding tax as per prevailing laws from the prize amount. After deducting the tax, the licensed company must issue a certificate confirming the withholding and immediately submit the details to the relevant Internal Revenue Office, while also notifying the department.
Additionally, operating any game via internet-based or online platforms is strictly prohibited. Casinos and hotels must ensure adequate security both inside and outside their premises. Furthermore, in accordance with the Risk-Based Monitoring Expansion Guideline 2082, if casinos fail to meet compliance standards during inspections—conducted to support Nepal’s efforts to exit the FATF grey list—legal action will be taken immediately.
