New Casino Law In Nepal: Foreign Investors Face Limits, Compliance Rules

Advertisement

The Nepal government plans to enact a new law about the casino sector. One significant tourism policy that incorporates new rules is the Integrated Tourist Act. For both domestic and foreign casino enterprises, introducing stricter regulations aimed at reshaping the gaming sector.

Advertisement

What’s Changing in the New Law?

One of the biggest changes in the new proposal is about foreign investment. Before, foreign investors could own up to 90% of a casino business. But now, the new law will limit them to only 49%. This means that foreign companies will need local partners to run a casino in Nepal. Many experts believe this might discourage big global casino operators from entering the market.

The proposed bill also tackles casino site difficulties, allowing current casinos within 3 kilometers to maintain operations while reintroducing a 5-kilometer distance requirement from international borders.

Nepal’s casino industry has been working under the Casino Regulation of 2013. But the government now wants to update the rules to match today’s growing tourism and hospitality sector. At first, they planned to bring in a separate Casino Act. But now, they have decided to include casino rules under the wider tourism law to keep everything more organized.

In recent years, Nepal has seen a big rise in four-star and five-star hotels across the country. These luxury hotels are important for attracting tourists, and many of them have started offering casino facilities. The government wants to ensure that the casino and hotel industries grow together while following proper rules. 

Nepal’s online casino industry has been running beneath the casino law of 2013. But the government now wants to update the regulations to help today’s developing tourism and hospitality sector. in the beginning, they planned to usher in a separate casino Act. but now, they’ve determined to encompass casino guidelines under the broader tourism regulation to hold the entirety extra organized.

In recent years, Nepal has seen a big rise in four-star and five-star hotels across the country. Those luxury inns are vital for attracting tourists, and lots of them have commenced offering casino facilities. The government wants to ensure that the casino and hotel industries develop together while following proper policies.

Rules About Where Casinos Can Open

The new law says that casinos must be at least 5 kilometers away from international borders. However, it also allows some older casinos that are already operating within 3 kilometers to continue working. This has raised questions from people in the industry, who say that unequal rules may affect business planning and fairness.

Licensing is Becoming More Complex

Under the new proposal, any company that wants to open a casino must first set up a separate business and also sign a deal with a hotel before getting a license. This makes the process longer and more difficult for new players. It could be even harder for smaller local businesses to enter the casino sector.

Key highlights:

• Foreign ownership in joint ventures is capped at 49% (down from 90%)
• Stricter licensing and compliance requirements
• Mandatory separation of casino entities from hotels
• Location restrictions reinstated, minimum 5 km from international borders, with some exceptions

Advertisement