Is Gambling Legal in Nepal? 2025 Guide to Casino & Betting Laws

What the Nepal Gambling Act (1963) Says

The Nepal Gambling Act 1963 is the most critical and broadly prohibits any form of gambling permitted in the country. In Section 1, gambling has been defined as the Act of staking property on an event having uncertain outcomes for gaining, or attempting to gain property, and such conduct is regarded as a criminal offense. It went on to prohibit holding such games in any place, resulting in some problems where it was to be interpreted whether a specific place could be a gambling promoter, with an exemption for casinos authorized under later amendments. Penalties vary between a fine of NPR 100-500 and jail for three months for players; however, operating promoters bear stiffer penalties. The Act was indirectly amended through the Muluki Ain and tourism laws, providing for tourist casinos while banning locals. In 2025, no major revision to the core Act has been affected, though new directives strengthen enforcement against online and illegal activities. It does not, however, explicitly refer to online gambling, thus being interpreted under wider cyber laws.

Taxation and Winnings – Do You Have to Pay?

Gambling does produce taxable income in Nepal if declared. However, because almost all forms of gambling are illegal, locals rarely pay taxes on them. Licensed casinos, meanwhile, pay a 40% royalty on their gross gaming revenue and a 25% corporate tax. Winnings for foreigners may attract withholding tax, but details are not precise. Under the Income Tax Act 2002, any gambling income, in theory, shall be taxed at a normal tax rate of 1-30% according to tax brackets, but there is less enforcement on those who are undeclared. If lotteries are legalized, a windfall tax applies—e.g., 25% on prize money above NPR 500,000. Offshore online winnings are not subject to local tax but could warrant an audit if funds are repatriated. Consult a tax advisor, as there is no specific form for taxing gambling winnings.

Is Using Betting Apps Legal in Nepal?

Foragraph with illegal gambling activities for Nepali residents: A few of such applications, like Melbet or Parimatch, carry out advertising despite the ban on such advertisements. However, downloading and placing a bet remains an offense under the Gambling Act and the Advertisement Regulation Act. According to enforcement plans, during the latter half of 2025, police officers will be after promoters with cases being instituted against TV channels airing illegal adverts. These online betting apps do not have a local license; offshore operators get blocked occasionally. Penalties are similar to those faced for illicit online gambling; that is, they have to pay fines and serve short spells in jail. If tourists want to, they can quietly use the applications; however, it is a considerable risk for locals as their devices can get seized, and they might be charged with cybercrime.

Is Sports Betting Legal in Nepal?

The law in Nepal does not allow sports betting, which is under the broader anti-gambling legislation. The Public Gambling Act of 1963 prohibits all forms of gambling and betting for Nepalese citizens, thus including even informal wagering in sports such as cricket, football, or kabaddi. While the provision does not explicitly point to the present-day online betting, it does cover any application of illegal betting, which might include some of those activities through a mobile betting app or an international website.

Within the country, no bookmaker exists with any license or approval from the governing authorities. The legal vacuum has thus opened in favor of underground and informal betting rings, particularly during events like the IPL, the FIFA World Cup, or the Asia Cup, when illegal betting seems to sprout like weeds. Held secretly in urban areas, these operations often become law enforcement targets.

While many users in the country may be unblocking international sportsbooks and online betting sites with VPNs, this is still considered unlawful. VPNs to bypass geographic restrictions cannot be regarded as legal. Such behaviour has caught the eye of the police authorities, who see the growing interest in online betting as a threat to youth and social order. As such, these issues around increasing digital surveillance and stricter cyber laws to block betting platforms have intensified in the last few years.

In simple terms, sports betting is illegal in Nepal, and one may end up in court while trying it offline or online. However, the underground area keeps growing, thanks to the lack of any regulating body and coordinated efforts of law enforcement.

What About Real Money Casino Games Like Slots & Aviator?