Kathmandu: Operating a casino in Nepal is about to become significantly more expensive as the government enforces a new regulatory framework that raises capital requirements, license fees, and annual royalties for both large and mini casinos.
After 12 years, the Government of Nepal has overhauled its casino regulations by replacing the Casino Regulation 2013 with the newly endoRsed Casino Regulation 2025. Approved on 7 July and published in the Nepal Gazette on 14 July, the regulation came into effect with the start of the new fiscal year.
One of the most notable changes is the increase in minimum paid-up capital. Large casinos must now maintain a paid-up capital of Rs 300 million, up from the previous Rs 250 million. Mini casinos are now required to hold Rs 200 million, up from Rs 150 million.
However, existing casinos have been given until the mid-April 2029 to meet the new capital thresholds.
To open a new casino under the new rules, operators must now invest nearly Rs 400 million, including Rs 300 million in paid-up capital and around Rs 100 million for other operational and licensing costs.
The initial approval fee, license fee, and license issuance cost have all increased. Initial approval costs Rs 10,000 (unchanged). License fee is up to Rs 1.5 million for large casinos and Rs 1 million for mini casinos (previously Rs 500,000 and Rs 200,000, respectively). License issuance cost will be Rs 30 million for large casinos and Rs 15 million for mini casinos (previously Rs 20 million and Rs 10 million, respectively)
The annual renewal fee has also been raised. Large casinos must now pay Rs 15 million, up from Rs 10 million. Mini casinos will be charged Rs 7.5 million, up from Rs 5 million.
In addition, annual royalties—mandated by the Economic Act 2025—have been significantly increased. Large casinos must pay Rs 50 million annually. Mini casinos will pay Rs 15 million annually.
A new provision requires casinos to present a bank guarantee equivalent to 1.5 times the royalty amount, valid for at least 14 months, or a cash deposit of the same value during license renewal.
The updated regulation also mandates that all casinos be operated only within registered and currently active hotels or resorts. Casinos can no longer operate independently if the host hotel has ceased operations.
Operators must renew their licenses at least 30 days before expiration. Failure to comply may result in license suspension or revocation.
Summary of key increases (Compared to 2013 Regulation):
| Category | Previous (2013) | New (2025) |
| Paid-up Capital (Large) | Rs 250 million | Rs 300 million |
| Paid-up Capital (Mini) | Rs 150 million | Rs 200 million |
| License Fee (Large) | Rs 500,000 | Rs 1.5 million |
| License Fee (Mini) | Rs 200,000 | Rs 1 million |
| License Cost (Large) | Rs 20 million | Rs 30 million |
| License Cost (Mini) | Rs 10 million | Rs 15 million |
| Annual Renewal (Large) | Rs 10 million | Rs 15 million |
| Annual Renewal (Mini) | Rs 5 million | Rs 7.5 million |
| Annual Royalty (Large) | Rs 50 million | Unchanged (by Economic Act) |
| Annual Royalty (Mini) | Rs 15 million | Unchanged (by Economic Act) |
The government expects that the updated regulation will improve compliance, increase state revenue, and promote more responsible and transparent operation of casino businesses in Nepal. However, the significantly higher financial obligations may pose challenges for smaller operatoss and new entrants to the industry.
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