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Law of Hurt in Nepal (2026): Simple, Grievous & Negligent Hurt Guide
A 2026 practitioner's guide to the law of hurt in Nepal under Sections 191-197 of the Muluki Criminal Code 207...
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Table of Contents0sections
- What does the Penal Code 2074 actually prohibit?
- Penalty schedule — what does a Sec. 125 conviction cost?
- What are the exceptions to the gambling prohibition?
- The licensed casino regime — Casino Regulations 2070
- Online gambling and cross-border platforms
- How are gambling cases prosecuted?
- Casino licence — practical compliance points
- Common defences and mitigation strategies
Gambling in Nepal sits in an awkward space — popular at Dashain and Tihar in many households as a cultural pastime, criminalised year-round under the Penal Code 2074, and simultaneously licensed in tightly regulated commercial form through the Casino Regulations 2070. Most Nepalis encounter gambling enforcement only after a Tihar party gets raided or a Telegram betting group becomes a Cyber Bureau case. By that point the law has already drawn its line — and the line is drawn through Section 125 of the Penal Code 2074, supplemented by the casino regime, the lottery exemption and the Advertisement Act 2076.
This guide covers the criminal-side framework first — what counts as gambling and betting, the penalty bands for first-time and repeat offenders, the limited exceptions for government-approved festival games and licensed lotteries, the property-forfeiture rule for instruments and proceeds. It then covers the licensed-casino regime — who can operate, what the licence costs, what royalty and tax apply, and where online gambling sits in the framework. Finally, it covers practice — how Sec. 125 cases are prosecuted, what defences run, and when an advocate is needed.
Gambling and betting in Nepal are governed by Chapter 20 of the Muluki Penal Code 2074 (2017), with Section 125 as the operative provision. Sec. 125(2) defines gambling as any game or process played by betting to gain, lose or win movable or immovable property or returns based on a contingency. First-time conviction carries imprisonment up to three months or a fine up to NPR 30,000 or both; second conviction up to one year imprisonment and NPR 50,000 fine; further repeat offences add up to three months and NPR 10,000 each time. Sec. 125(4)–(7) prohibit betting and impose imprisonment up to one year and a fine up to NPR 10,000. Instruments used and property gained from gambling are liable to forfeiture. Exceptions: government-approved festival games with small stakes and government-licensed lotteries. Casino Regulations 2070 license commercial casinos at NPR 20 crore (NPR 10 crore for modern-machine-only) plus annual royalty under the Finance Act and 25 percent corporate income tax. The Department of Tourism under the Ministry of Culture, Tourism and Civil Aviation is the casino regulator. The Advertisement Act 2076 prohibits gambling advertising and unauthorised lottery sale.
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Our criminal law team represents accused individuals in gambling-raid prosecutions, online-betting Cyber Bureau cases, and casino-regulatory advisory for licensed operators. The recurring pattern in raid cases is the same — a private gathering during festival season, police arrival on a tip, seizure of cards, dice or chips, and a Sec. 125 charge for everyone present. Several solid defences run on first-time charges (festival exception, no-stake game, third-party presence without participation). On the casino side, our corporate practice supports licence application, FDI structuring under FITTA 2075 for foreign-investor casino joint ventures, and royalty and tax compliance.
What does the Penal Code 2074 actually prohibit?
Chapter 20 of the Penal Code 2074 covers offences relating to public morality, with Section 125 as the gambling-specific provision. The structure of Sec. 125:
- Sec. 125(1) — prohibits gambling as defined in sub-section (2)
- Sec. 125(2) — defines gambling: any game or process played by betting to gain, lose or win any movable or immovable property, or returns based on some contingency. Includes betting or wagering to gain or lose any such property or returns on the win or loss of others
- Sec. 125(3) — exceptions: a game played with the approval of the Government of Nepal for entertainment purposes in a public ceremony, fair, feast, festival or exhibition involving the loss or gain of small amounts of movable property; lotteries operated with the approval of the authorised authority
- Sec. 125(4)–(7) — prohibit betting and encouraging others to bet
- Penalties — graduated by repeat-offender status
The framework is broad enough to capture both physical card-and-dice gambling and online betting. Online sports-betting accounts on offshore platforms, Telegram betting groups, dice apps with stake-based outcomes, and similar digital gambling all fall within the Sec. 125 perimeter. Where the digital element involves cross-border platforms or fraud, the matter also routes to the Cyber Bureau alongside the local police.
Penalty schedule — what does a Sec. 125 conviction cost?
The Penal Code 2074 grades the penalty by repeat-offender status:
| Conduct | Imprisonment | Fine (NPR) |
|---|---|---|
| Gambling — first conviction (Sec. 125) | Up to 3 months | Up to 30,000 |
| Gambling — second conviction | Up to 1 year | Up to 50,000 |
| Gambling — further repeat (each time) | + Up to 3 months | + Up to 10,000 |
| Betting / encouraging betting (Sec. 125(4)–(7)) | Up to 1 year | Up to 10,000 |
| Causing another person to gamble | Up to 3 months (first) | Up to 30,000 |
The court can impose imprisonment, fine, or both. In practice first-time offenders charged at festival raids commonly receive a fine-only or short-imprisonment sentence; the longer custodial outcomes apply to organised gambling-house operators and repeat offenders. Forfeiture is a separate consequence — instruments used in gambling (cards, dice, chips, slot machines, devices) and movable or immovable property gained from gambling are liable to confiscation under Sec. 125 read with the Penal Code's general forfeiture provisions.
What are the exceptions to the gambling prohibition?
Sec. 125(3) of the Penal Code 2074 carves out two narrow exceptions:
- Government-approved festival games — a game played with the approval of the Government of Nepal for entertainment purposes in a public ceremony, fair, feast, festival or exhibition, involving the loss or gain of a small amount of movable property. The exception is narrow and turns on (a) government approval, (b) entertainment purpose at a public ceremony, fair or festival, and (c) only small movable-property stakes. Private Tihar gatherings with cash stakes do not automatically fall within the exception even if Tihar is a festival — there must be government approval and the public-ceremony element.
- Authorised lotteries — lotteries operated with the approval of the authorised authority. Government-licensed lottery schemes (state lotteries, charity-purpose draws with proper authorisation) are not classified as gambling. Unauthorised lottery operation and unlicensed lottery sale remain offences both under the Penal Code and the Advertisement Act 2076.
There is no general "private home" or "social-game" exception in the Penal Code. The festival exception does not protect a routine card-game-with-stakes in a domestic setting outside government-approved public ceremonies.
The licensed casino regime — Casino Regulations 2070
Commercial casinos in Nepal operate under a separate licensing regime created by the Casino Regulations 2070 (2013), administered by the Department of Tourism under the Ministry of Culture, Tourism and Civil Aviation. The framework is restrictive — only a small number of licensed casinos operate, primarily attached to five-star hotels in Kathmandu and Pokhara catering to foreign tourists. Key parameters:
| Item | Detail |
|---|---|
| License fee — full casino | NPR 20 crore (NPR 200,000,000) |
| License fee — modern machines only | NPR 10 crore (NPR 100,000,000) |
| Annual royalty | Set by the prevailing Finance Act each year |
| Corporate income tax | 25 percent of net profit under Income Tax Act 2058 |
| Eligible operators | Five-star hotels with separate company structure |
| Eligible patrons | Foreign nationals; Nepali citizens generally restricted |
| Regulator | Department of Tourism, Ministry of Culture Tourism and Civil Aviation |
Indicative royalty figures from recent Finance Acts have been around NPR 5 crore for full casinos and NPR 1.5 crore for modern-machine-only operations, with revisions notified annually. Confirm the current figure with the Department of Tourism before any application or compliance reckoning. The licensing regime sits alongside, not in conflict with, Sec. 125 — licensed casino operations are legal exceptions to the general criminal prohibition; unlicensed casino-style operation falls back into Sec. 125.
Online gambling and cross-border platforms
Online gambling in Nepal sits squarely within Sec. 125 of the Penal Code 2074. The definition in Sec. 125(2) — bet-based game for property or returns on a contingency — does not turn on the medium of play. Online poker, sports betting on offshore platforms, casino-style apps, dice and lottery apps, and Telegram-based betting groups all fall within the criminal prohibition. The fact that the platform is hosted outside Nepal does not change the position for the Nepali player — the offence is committed where the player participates.
Enforcement on online gambling has intensified through the Cyber Bureau in recent years, with cases routinely combining Sec. 125 (gambling) with Electronic Transactions Act 2063 charges where the conduct also involves digital fraud, payment-platform abuse or cross-border money flows. For the Cyber Bureau filing process see our Cyber Bureau guide; for the broader cyber-crime framework see our cyber crime laws guide.
How are gambling cases prosecuted?
Gambling prosecutions follow standard criminal procedure under the Muluki Criminal Procedure Code 2074. The path:
- Raid or complaint — physical raid by local police on a gambling location, or Cyber Bureau / district police complaint for online gambling
- Seizure — instruments (cards, chips, devices), cash on the table, mobile phones used in betting groups
- FIR registration and arrest — Sec. 125 charge filed against participants and operators; identification of gambling-house operator is key for the heavier sentence
- Bail application — District Court discretion; typically granted for first-time accused on routine bail bond
- Charge-sheet and trial — at the District Court of the place where the offence occurred
- Verdict — conviction with imprisonment / fine / both, and forfeiture of seized instruments and proceeds; or acquittal. Appeal to the High Court on substantial questions of law
The defences that run most often: the festival exception under Sec. 125(3), no-stake game (a casual non-betting card game does not fall within Sec. 125(2)), third-party presence without participation (a guest at the host's home who did not play), and seizure procedure challenge (irregular search warrant, chain-of-custody problems with seized cash). Repeat-offender escalation depends on prior conviction record at the same District Court — the prosecutor must produce the prior conviction order for the higher sentencing band to apply.
Casino licence — practical compliance points
For corporate clients evaluating the casino business, the key compliance points beyond the headline licence and royalty figures are:
- Hotel attachment — casino licences are issued only to companies operating five-star hotels; standalone casino licences are not currently available
- Patron eligibility — casino patronage by Nepali citizens is restricted under the Regulations; the operating model is foreign-tourist-focused, with identification checks at entry
- Modern-machine-only sub-licence — operates at the lower NPR 10 crore licence fee with NPR 1.5 crore (indicative) royalty, restricted to electronic gaming machines
- Foreign investment — casino is a permitted FDI sector subject to FITTA 2075 thresholds and Department of Industry approval
- Money laundering compliance — Asset Laundering Prevention Act 2064 applies; KYC and reporting obligations are heavy
- Advertising — gambling advertising is prohibited under the Advertisement Act 2076; casino marketing is constrained to brand-presence rather than active solicitation
- Renewal — licences must be renewed periodically; non-renewal triggers automatic revocation under recent amendment chains
Common defences and mitigation strategies
Most Sec. 125 cases that come through our practice involve festival-season raids on private gatherings or online-gambling charges from Cyber Bureau investigations. The defence approach varies:
- Festival exception attempt — argue that the gathering falls within Sec. 125(3); succeeds only where there is government approval and a clearly public ceremony, which is rare in domestic settings
- No-stake game — argue that the game played did not involve betting on a contingency (a casual card game without cash stakes is not gambling); requires evidence that no stakes were on the table
- Mere presence — accused was at the location but did not participate; supported by witness statements, seating diagram, and absence of cash on the accused's person
- Seizure challenge — irregular search warrant, no recovery memo, chain-of-custody breach; weakens the prosecution's evidence base
- Identification challenge — accused was not the gambling-house operator (the heavier-sentence target); supported by tenancy records, ownership of instruments and witness identification
- Mitigation on sentence — first-time, no prior record, voluntary surrender, plea of guilty under the Criminal Procedure Code 2074 reduce custody risk
Frequently Asked Questions
No, gambling is generally illegal in Nepal under Section 125 of the Muluki Penal Code 2074. The provision criminalises any game or process played by betting to gain, lose or win property or returns based on a contingency. Two narrow exceptions exist: government-approved festival games at public ceremonies with small stakes, and lotteries operated by an authorised authority. Licensed casinos operate under a separate regime under the Casino Regulations 2070, but only attached to five-star hotels and primarily for foreign tourists.
First-time conviction under Section 125 of the Penal Code 2074 carries imprisonment up to three months or a fine up to NPR 30,000 or both. Second conviction escalates to imprisonment up to one year and a fine up to NPR 50,000. Each further repeat offence adds up to three months and NPR 10,000. Betting offences under Section 125(4)–(7) carry imprisonment up to one year and a fine up to NPR 10,000. Instruments used and property gained from gambling are liable to forfeiture.
Yes. Online gambling falls squarely within Section 125 of the Penal Code 2074. The definition does not turn on the medium of play — online poker, sports betting on offshore platforms, casino-style apps, dice apps and Telegram-based betting groups all fall within the criminal prohibition. The fact that the platform is hosted outside Nepal does not change the position for the Nepali player, because the offence is committed where the player participates. Enforcement is increasingly handled by the Cyber Bureau.
Section 125(3) of the Penal Code 2074 exempts a game played with the approval of the Government of Nepal for entertainment purposes in a public ceremony, fair, feast, festival or exhibition involving the loss or gain of small amounts of movable property. The exception is narrow and turns on three elements: government approval, public-ceremony or festival setting, and small movable-property stakes. A private Tihar gathering with cash stakes does not automatically fall within the exception.
Strictly under the Penal Code, betting-based card play during Tihar in a private domestic setting is gambling under Section 125(2), regardless of the festival context. The Section 125(3) exception requires government approval and a public-ceremony setting. In practice enforcement focuses on raids on organised gambling operations rather than small private gatherings, but the legal exposure exists. The risk is fact-specific — stakes size, number of participants, and operator identification all matter to enforcement priority.
Casino licences are issued by the Department of Tourism under the Ministry of Culture, Tourism and Civil Aviation pursuant to the Casino Regulations 2070 (2013). Eligibility is restricted to companies operating five-star hotels. The licence fee is NPR 20 crore for a full casino licence and NPR 10 crore for a modern-machine-only licence, plus annual royalty under the prevailing Finance Act and 25 percent corporate income tax under the Income Tax Act 2058. Foreign investment is permitted subject to FITTA 2075 approval.
Lotteries operated with the approval of the authorised authority are exempt from the gambling prohibition under Section 125(3) of the Penal Code 2074. State lotteries and properly authorised charity-purpose draws are therefore legal. Unauthorised lottery operation, unlicensed lottery sale and unauthorised promotional draws remain offences under the Penal Code, with the Advertisement Act 2076 also imposing advertising-side restrictions on unauthorised lotteries.
Casino patronage by Nepali citizens is restricted under the Casino Regulations 2070. The operating model is foreign-tourist-focused, with identification checks at entry to verify foreign-national status. The exact scope of the restriction has shifted in recent regulatory amendments and proposed new casino legislation; confirm the current position with the Department of Tourism before any operating decision. Nepali citizens generally use the casinos only in limited circumstances permitted by the Regulations.
Under Section 125 read with the general forfeiture provisions of the Penal Code 2074, all instruments used in gambling and movable or immovable property gained from gambling are liable to confiscation. Instruments include cards, dice, chips, slot machines, electronic gaming devices, and mobile phones used in online-betting groups. Cash on the table and any property purchased with gambling proceeds can also be forfeited. The forfeiture order is part of the conviction.
The Penal Code 2074 treats both as offences but at different penalty levels. Gambling under Section 125(2) is a bet-based game for property or returns on a contingency, with first-time penalty up to three months / NPR 30,000. Betting under Section 125(4)–(7) covers wagering on a future outcome (sports result, election outcome, third-party event) and carries imprisonment up to one year and a fine up to NPR 10,000. The two categories overlap in practice and a single course of conduct can attract charges under both.
No. The Advertisement Act 2076 prohibits gambling advertising and unauthorised lottery sale. The prohibition extends to print, broadcast, online and outdoor advertising of gambling activities and unauthorised lottery schemes. Licensed casinos operate under tight advertising restrictions — brand presence is permitted but active solicitation of patronage and game-promotion advertising are not. Violation of the Advertisement Act carries its own penalty schedule alongside any Penal Code 2074 charges.
Standard criminal procedure under the Muluki Criminal Procedure Code 2074. Police raid or Cyber Bureau complaint, seizure of instruments and cash, FIR registration with Section 125 charge, arrest, bail application at the District Court, charge-sheet, trial, verdict (conviction with imprisonment / fine / both and forfeiture, or acquittal), and appeal to the High Court of the relevant province on substantial questions of law. First-time accused are typically granted bail; the imprisonment risk on first conviction is up to three months.
Several practical defences run on first-time charges. The festival exception under Section 125(3) where the facts support it. No-stake game — a casual card game without cash stakes does not fall within Section 125(2). Mere presence — the accused was at the location but did not participate. Seizure procedure challenge — irregular search warrant, no recovery memo, chain-of-custody breach. Identification challenge — accused was not the gambling-house operator. Mitigation on sentence for first-time accused with no prior record reduces custody exposure.
Discussion of amendments to the Casino Regulations 2070 has been ongoing in recent years, with proposals to enhance regulation, curb foreign-investment loopholes and tighten compliance on existing licensed operators. As of April 2026 no major amendment has been enacted that materially changes the Section 125 criminal framework or the casino licensing regime. Confirm the current legislative position with an advocate before relying on the framework for any operating or compliance decision.
Immediately after a raid, seizure or FIR registration. Early advocate engagement focuses on bail at first appearance, framing the defence (festival exception, no-stake game, mere presence, seizure challenge), and managing the stake quantum and prior-conviction record that drive sentencing. For corporate casino-licensing work, engage counsel at the diligence stage before any application — the FITTA 2075, FDI, royalty, anti-money-laundering and Advertisement Act overlays are interconnected and need integrated planning. Alpine Law Associates' criminal and corporate practices handle both.
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This article is intended solely for informational purposes and should not be interpreted as legal advice, advertisement, solicitation, or personal communication from the firm or its members. Neither the firm nor its members assume any responsibility for actions taken based on the information contained herein.