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Nepal’s government is working on a new law to manage its casino industry better. This law is a part of a larger tourism plan called the Integrated Tourism Bill. It includes many new rules to help the gaming sector grow in a safe and well-managed way. But some experts say that these changes may create new problems for casino owners and investors.
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Key Change: Less Foreign Ownership
The biggest change in the new law is the limit on foreign investment. Right now, foreign investors can own up to 90% of a casino. But if the new rule is passed, they can only own 49%. The remaining 51% must be held by Nepali partners. This step aims to give more control to local businesses. But many people believe it may reduce foreign interest in Nepal’s casino market.
No Clear Decision on Nepali Players
At the moment, Nepali citizens are not allowed to enter casinos. But the new bill does not clearly mention if this rule will stay the same or change. This silence has left many confused. Some think the government might later allow local players, but no one is sure yet.
Casino Location Rules Are Changing Again
There has also been a lot of back and forth about where casinos can be built. In 2019, the government allowed casinos to open within 3 kilometers of international borders. Now, the new law wants to go back to the old rule of 5 kilometers away from the borders.
But casinos already operating within 3 kilometers will be allowed to continue. This mixed approach has upset hotel and casino owners, especially those near the Nepal-India border. They say these rules hurt long-term investment and tourism plans.
How to Get a Casino Licence
To open a casino in Nepal, a company must:
- Create a new business just for the casino.
- Sign an agreement with a four-star or five-star hotel.
- Submit an application to the Department of Tourism with a fee of Rs1 million.
- Pay Rs25 million for a casino license or Rs10 million for an electronic gaming license.
The license must be renewed every year before mid-July. The annual royalty fee is set at Rs50 million for casinos and Rs15 million for mini casinos.
If a company doesn’t renew the license within 60 days of expiry, it will be automatically cancelled.
Hotels Must Share Responsibility
To stop fraud and payment issues, the new law says that hotels must own at least 10% of the casino. This will make sure that hotels are also responsible if anything goes wrong.
If a hotel loses its star rating or stops working for more than three months, the casino license linked to it will also be cancelled.
Ownership Transfer and Investor Rules
- Casinos can’t transfer or lease their license to other companies.
- If anyone wants to buy more than 15% of a licensed casino, they must get government approval first.
- Companies that already run casinos must adjust their ownership within one year to follow the 49% foreign limit.
- Only one license will be allowed per casino. Companies with many under one license will need to reduce to one casino by mid-July 2025.
Strict Checks and Record-Keeping
Every licensed casino must:
- Keep proper records of players, operations, and finances.
- Follow safety and infrastructure rules.
- Fix any issues within two years or face action.
- Pay all customer taxes or face heavy penalties.
- Avoid setting up casinos in religious or cultural areas.
If any rule is broken, the casino can be closed immediately and taken to court.
Social Responsibility Made Mandatory
All casinos will need to give 2% of their yearly profit to social causes like:
- Tourism
- Health
- Education
- Sports
- Environment
- Worker benefits
If not, this amount must be paid directly to the government treasury.
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