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Gambling and Betting Law in Nepal 2026 — Full Guide
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Gambling and betting in Nepal are criminalised under Sections 121–125 of the Muluki Aparadh Sanhita (Penal Code) 2074 (2017) — which replaced the repealed Some Public (Crime and Punishment) Act 2027 when the new Penal Code came into force on 17 August 2018. First-offence penalty under Section 125 is up to 3 months' imprisonment or NPR 30,000 fine; second offence up to 1 year + NPR 50,000; subsequent offences add 3 months + NPR 10,000 each. Section 125(6) covers betting with up to 1 year + NPR 10,000 + forfeiture of staked amount. Casinos operate under the Casino Regulation 2070 (2013) — Nepali citizens are banned; only foreign passport holders aged 18+ are permitted.

This is the 2026 (2082/83 BS) guide to gambling and betting law in Nepal — the Penal Code framework (replacing the repealed 1970 Act), Casino Regulation 2070, the Nepali-citizen casino ban, online betting illegality, lottery exemption, skill-vs-chance jurisprudence, and the FERA + NRB Act exposure where crypto / hundi funds gambling. For currency-control context see our currency law in Nepal and cryptocurrency law guides.

Quick answer — Gambling and betting law in Nepal (2026):

  • Statute: Penal Code 2074 Sections 121-125. The "Some Public (Crime and Punishment) Act 2027" was repealed when the Penal Code came into force in 2018.
  • Sec 125 first-offence penalty: up to 3 months' imprisonment or NPR 30,000 fine.
  • Sec 125 second offence: up to 1 year + NPR 50,000.
  • Sec 125(6) betting: up to 1 year + NPR 10,000 + forfeiture of staked amount.
  • Casino Regulation 2070 (2013): Nepali citizens / residents banned from entering or playing in casinos. Only foreign passport holders aged 18+ allowed.
  • Casino fees: NPR 2 crore (full casino) / NPR 1 crore (machine-only). Annual royalty NPR 5 crore / NPR 1.5 crore (per Finance Act).
  • Online betting: illegal; offshore betting sites (Bet365, 1xBet) blocked by NTA.
  • Lottery: government-approved lotteries exempt; festival-fair small-prize games also exempt.

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Our criminal law team sees three principal gambling-law streams. First, routine social-gambling cases (Tihar season teen-patti and similar) generate a steady volume of Section 125 charges. Second, the casino regulatory side — operator-licensing applications, Nepali-citizen access disputes, and labour-law issues around casino staff. Third, online sports-betting enforcement — typically combined with FERA / NRB Act charges where the user has remitted funds abroad for betting deposits, stacking the gambling charge on top of a foreign-exchange offence. The crypto / hundi-funded gambling cases are the highest-stakes.

What is the gambling law in Nepal?

Gambling in Nepal is criminalised under Sections 121–125 of the Muluki Aparadh Sanhita (Penal Code) 2074 (2017). The Penal Code came into force on 17 August 2018, replacing the earlier Some Public (Crime and Punishment) Act 2027 (1970) which had previously governed gambling — references in some practitioner sources to the "1970 Act" as current law are out of date. Section 125 is the principal gambling offence with a graduated penalty ladder by offence count; Section 125(6) handles betting separately. Casinos are regulated under the parallel Casino Regulation 2070 (2013) framework.

What is the penalty for gambling in Nepal?

Section 125 of the Penal Code 2074 graduates the penalty by offence count. First offence — up to 3 months' imprisonment or fine up to NPR 30,000 (either / or, at the court's discretion). Second offence — up to 1 year imprisonment and fine up to NPR 50,000 (both apply). Subsequent offences — an additional 3 months' imprisonment and NPR 10,000 fine for each repeat. Gambling instruments and the proceeds of gambling are confiscated. Importantly, the house / room / place / vehicle where gambling occurred is not seized — only the gambling items and stakes.

What is the penalty for betting in Nepal?

Section 125 sub-section (6) of the Penal Code 2074 covers betting separately. The penalty is up to 1 year' imprisonment + NPR 10,000 fine + forfeiture of the staked amount. The provision is interpreted broadly to include sports betting, fixed-odds betting, e-sports betting, and other speculative-stake games. Online betting on offshore platforms is caught under the same provision — the location of the platform abroad does not exempt the Nepali bettor from Section 125(6). Offshore betting sites are also blocked at the ISP level by the Nepal Telecommunications Authority (NTA) on MoCIT direction.

Can Nepali citizens enter casinos in Nepal?

No. Under the Casino Regulation 2070 (2013) administered by the Ministry of Culture, Tourism and Civil Aviation (MoCTCA), Nepali citizens and residents are banned from entering or playing in casinos. Only foreign passport holders aged 18+ are permitted, with mandatory passport verification at the door. The ban is a structural feature of the regulatory model — casinos in Nepal are designed as tourist-revenue businesses tied to hotels, not as domestic-consumption entertainment. A Nepali citizen entering a casino faces a Sec 125 charge; the casino operator faces licence-condition breach exposure for admitting them.

How are casinos licensed in Nepal?

Casinos are licensed under the Casino Regulation 2070 administered by MoCTCA. The licence covers full casino operations (table games + machines) with a fee of NPR 2 crore (NPR 20 million) and machine-only gaming with a fee of NPR 1 crore (NPR 10 million). Annual royalty is NPR 5 crore for full casino and NPR 1.5 crore for machine-only, per Finance Acts (verify the current fiscal year rate). Casinos must operate inside licensed luxury hotels, with a current border-distance rule of 3 km from the international border (a 2025 amendment Bill proposes reverting to 5 km). Annual renewal is by mid-July.

No. Online gambling, online sports betting, online casino games, and online poker are all illegal under Section 125 of the Penal Code 2074. The provision covers "any game played by betting" and is interpreted to include electronic / online means. Offshore betting sites such as Bet365, 1xBet, Betway, and others have been blocked at ISP level by the NTA on MoCIT / NRB direction. A Nepali user transacting on a foreign platform via VPN remains exposed to Sec 125, and the foreign-exchange remittance to fund the betting account triggers parallel Foreign Exchange (Regulation) Act 2019 charges with significantly higher penalties.

Government-approved lotteries are exempt from Section 125 of the Penal Code 2074. Nepal Aam Pratisthan (Nepal General Trust) and similar government-permitted bodies operate licensed lotteries under separate statutory frameworks. Private commercial lotteries without government permission are unlawful. Small-prize games at public ceremonies, fairs, and festivals (where movable property of low value is awarded) are also generally exempt under the Penal Code framework. Sub-section (6) of Section 125 specifically excludes such public-ceremony games. The advertisement of unlicensed lotteries is prohibited under the Advertisement (Regulation) Act 2076.

What about skill-based games like rummy or chess?

Practitioner consensus (lawimperial, lawbhandari) treats games of pure skill — chess, e-sports tournaments, certain poker formats with predominant skill element — as less regulated than games of pure chance. The distinction matters because Section 125 captures speculative-stake games of chance more clearly than games of skill. However, no Supreme Court of Nepal decision has squarely settled the rummy / poker skill-vs-chance question for Nepal. Practitioners advise treating any cash-stake game as exposing the player to Section 125 risk; verification with counsel is recommended before commercialising a skill-game platform.

What is the FERA / hundi exposure on gambling?

Where a Nepali bettor funds an online gambling account from Nepal through a foreign-exchange remittance, hundi transfer, or cryptocurrency, the Foreign Exchange (Regulation) Act 2019 Section 9(c) is triggered — unauthorised foreign exchange. The FERA penalty (fine 1×–3× the transaction value + up to 3 years' imprisonment + extension for high-value cases) stacks on the Section 125 betting charge. NRB Act 2058 and Asset (Money) Laundering Prevention Act 2064 may also engage where the scale and pattern of transactions cross AML thresholds. These multi-statute charges generate the heaviest gambling-related prosecutions in Nepal.

When should you involve a lawyer?

For routine Section 125 charges from social-gambling enforcement drives, particularly second-offence and subsequent cases where the penalty ladder steepens. For casino operators on licensing, renewal, and Nepali-citizen access disputes. For online betting investigations where the FERA / NRB Act / AML stacking is being assembled — early intervention is critical because the multi-statute exposure can be material. And for advisory work on skill-vs-chance game commercialisation where a platform launch is being planned. To get advice on a gambling or betting matter, speak with our lawyers today.

Last reviewed: May 2026

Frequently Asked Questions

No. Gambling is criminalised under Sections 121-125 of the Penal Code 2074 (2017), which replaced the repealed Some Public (Crime and Punishment) Act 2027. First offence: up to 3 months or NPR 30,000.

No. Under the Casino Regulation 2070 (2013), Nepali citizens and residents are banned from entering or playing in casinos. Only foreign passport holders aged 18+ are permitted, with passport verification at the door.

No. Online sports betting, online casinos and online poker are illegal under Section 125 of the Penal Code 2074. Offshore betting sites are blocked by NTA. FERA / NRB Act charges stack on cross-border remittance for betting.

The Some Public (Crime and Punishment) Act 2027 (1970) was Nepal's gambling and minor-offences statute prior to 17 August 2018. It was repealed when the Muluki Aparadh Sanhita (Penal Code) 2074 came into force on that date, with the gambling and betting provisions migrated to Sections 121-125 of the new Penal Code. References in some practitioner articles to the "Act 2027" as live law are out of date; the current statute is the Penal Code 2074.

Hosting, organising or letting premises be used for gambling is a separate offence under Sections 121-125 of the Penal Code 2074, with the operator / organiser facing a heavier penalty than mere participants. Practitioner sources cite up to 3 years' imprisonment and NPR 3 lakh for organisers, exceeding the plain Section 125 text — likely combining Sec 125 with aggravation provisions or related offences. Verify the specific charging against current Penal Code text with counsel before relying on these figures. The gambling instruments and proceeds are confiscated regardless.

No, teen-patti for stakes is gambling under Section 125 of the Penal Code 2074, regardless of the festival context. The cultural practice of teen-patti during Tihar is widespread but not legally exempt; Nepal Police conducts enforcement drives during the festival season, and arrests are common. First-offence penalty under Sec 125 is up to 3 months or NPR 30,000. Stake-free teen-patti as social entertainment is outside the gambling definition. Small-stake family games face less consistent enforcement but remain technically illegal.

Under the Casino Regulation 2070 (2013) and current Finance Acts, the casino licence fee is NPR 2 crore (NPR 20 million) for full casino operations and NPR 1 crore (NPR 10 million) for machine-only gaming. Annual royalty is NPR 5 crore for full casino and NPR 1.5 crore for machine-only. The licence is annual, renewable by mid-July at the start of the fiscal year. The Kathmandu Post has reported alternative figures (NPR 25 million) citing recent Finance Acts — verify against the current FY rate.

Casinos must operate inside a licensed luxury hotel under the Casino Regulation 2070. The current border-distance rule is 3 km from the international border (with India and China). A 2025 amendment Bill proposes reverting to the earlier 5 km rule to limit border-traffic gambling. Casinos cluster in Kathmandu (Yak & Yeti, Soaltee, Crowne Plaza, Hyatt, others), Pokhara (Tiger Palace), and border-hotel locations targeting Indian-tourist traffic. The host hotel's classification and amenities are part of the licence condition.

The Ministry of Culture, Tourism and Civil Aviation (MoCTCA) issues casino licences under the Casino Regulation 2070. The Department of Tourism and Nepal Tourism Board provide operational support. The licence application requires the host hotel's classification certification, the operator's company registration, fee deposit, premises specification, security and audit framework. MoCTCA conducts background checks and periodic inspections during the licence term. Licence renewal is annual by mid-July.

Government-approved lotteries operated by Nepal Aam Pratisthan (Nepal General Trust) and similar permitted bodies are exempt from Section 125 of the Penal Code 2074. Private commercial lotteries without government permission are unlawful. Small-prize games at public ceremonies, fairs, and festivals (where movable property of low value is awarded) are exempt under the Penal Code framework. The advertisement of unlicensed lotteries is prohibited under the Advertisement (Regulation) Act 2076. Cross-border lottery participation (e.g., Indian government lotteries from Nepal) is unsettled but generally treated cautiously.

Poker played for cash stakes falls within Section 125 of the Penal Code 2074. Practitioner commentary (lawimperial, lawbhandari) notes that poker has a significant skill component that could distinguish it from pure chance games, but no Supreme Court of Nepal decision has settled the skill-vs-chance question for poker. Practitioners advise treating any cash-stake poker as exposing the player to Section 125 risk. Stake-free poker is outside the gambling definition. Commercial poker tournaments would need to be structured around the licensing / casino framework, which restricts Nepali-citizen participation.

No. Sports betting on cricket, football and other sports falls under Section 125 sub-section (6) of the Penal Code 2074, with a penalty of up to 1 year' imprisonment + NPR 10,000 fine + forfeiture of the staked amount. Offshore sports betting sites are blocked by NTA at ISP level. Where the bettor remits funds abroad to fund the betting account, the Foreign Exchange (Regulation) Act 2019 Section 9(c) FERA charge stacks on the Sec 125(6) gambling charge, dramatically increasing exposure. VPN bypass does not legalise the underlying activity.

Cryptocurrency trading itself is illegal in Nepal under NRB notices and the FX (Regulation) Act 2019. Using cryptocurrency to fund gambling stacks the crypto offence on top of the Section 125 gambling charge. The combined exposure can be material — Sec 125 betting (up to 1 year), FERA Sec 9(c) (1×–3× transaction value + up to 3 years), NRB Act Sec 95 (up to 7 years for high-value), and Asset Laundering Prevention Act 2064 (1–4 years) all charging in parallel where the scale and pattern qualify. The CIB Cyber Bureau investigates the wallet / exchange / bank chain.

Fantasy sports — Dream11-style daily fantasy games — sit in legally ambiguous space. Where the game has a predominant skill element and cash stakes, the position depends on the skill-vs-chance line under Section 125. Offshore fantasy-sports platforms are typically blocked by NTA alongside other betting sites. There is no specific fantasy-sports licensing framework in Nepal. Operators contemplating a Nepal-facing fantasy platform should obtain legal advice well in advance and structure the offering carefully; defensive design (skill emphasis, no direct cash-stake) reduces exposure but does not eliminate it.

No. Advertising of gambling, betting and unlicensed lotteries is prohibited under the Advertisement (Regulation) Act 2076 (2019). Licensed casinos can advertise their hospitality / tourism offerings but cannot promote gambling itself to Nepali audiences. Cross-border advertising (Indian betting site advertisements on offshore platforms reaching Nepali audiences) generates complex enforcement issues — the platform faces Adv Reg Act exposure, and the Nepal Telecommunications Authority can issue takedown orders. Influencers promoting betting platforms face liability under the Act.

Cockfighting, dog-fighting, bull-fighting and other animal-fight gambling are doubly illegal in Nepal — Section 125 of the Penal Code 2074 for the gambling element, and Section 290 (cruelty to animals) for the underlying animal harm. Section 291 (cruelty in public) can also apply. The combined charging substantially raises the exposure. Cultural cock-fighting events at some hill festivals have been challenged by animal-welfare NGOs through writ petitions, with the Supreme Court generally favouring protective interpretation but enforcement against deeply embedded cultural practice remains uneven.

Section 125 first-offence gambling cases are typically bailable, given the modest penalty (up to 3 months or NPR 30,000). Second-offence and subsequent charges with the steeper penalty ladder (up to 1 year + fine) are still generally bailable on standard conditions. Where the case involves stacked charges — gambling + FERA + AML + NRB Act — the bail position depends on the heaviest charge, with FERA-stack cases sometimes effectively non-bailable. The District Court is the bail authority. Procedural bail conditions (no contact with co-accused, no operation of the gambling premises) typically apply.

A 2025 amendment Bill to the Casino Regulation 2070 has been discussed, proposing reverting the casino border-distance rule from 3 km to 5 km from the international border. Civil society and tourism-industry voices have made representations on both sides — tourism interests favour proximity (Indian tourists), social-policy interests favour distance. No major reform to the Penal Code 2074 gambling sections is currently in train; the framework is treated as stable. Online gambling regulation has been raised in policy discussions but no Bill has progressed. The trajectory is enforcement-focused rather than liberalising.

Nepal Police is the principal enforcement body for Section 125 offences, with the Crime Investigation Department (CID) handling complex / organised gambling operations. Enforcement drives are concentrated during the Tihar season (Oct-Nov) and around major sports events (cricket internationals, IPL season). Online betting investigation is led by the Cyber Bureau of CIB. Where FERA charges are involved, the NRB Foreign Exchange Management Department (FXMD) and Department of Money Laundering Investigation (DMLI) join the investigation. Cases are filed at the District Court by the Public Prosecutor.

For routine Section 125 charges from social-gambling enforcement drives, particularly second-offence and subsequent cases where the penalty ladder steepens. For casino operators on licensing, renewal, and Nepali-citizen access disputes. For online betting investigations where the FERA / NRB Act / AML stacking is being assembled — early intervention is critical because the multi-statute exposure can be material. And for advisory work on skill-vs-chance game commercialisation where a platform launch is being planned.

Disclaimer:
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.

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