The Nepali government has proposed a new casino law aimed at tightening regulations and reducing foreign investment in the gaming sector.
This legislation forms part of the Integrated Tourism Act and introduces measures such as ownership caps, stricter licensing requirements, and enhanced compliance protocols.
According to The Katmandu Post, the proposed changes include allowing foreign investors to hold only 49 percent equity in joint ventures, a significant reduction from the current allowance of 90 percent, with concerns existing that these provisions may deter global operators rather than attract them.
Historically, the casino industry in Nepal has been governed by the Casino Regulation of 2013, but recent developments have prompted a reevaluation of these laws. The original plan to create a standalone Casino Act has shifted to embedding the regulations within a broader tourism framework.
This change reflects the government’s response to the rapid growth in hotel infrastructure, with an increase in five-star and four-star hotels across the country, which are seen as vital for boosting tourism.
The proposed law also addresses issues related to the location of casinos, reinstating a 5-kilometer distance requirement from international borders while allowing existing casinos within 3 kilometers to continue operations.
This inconsistency has drawn criticism from industry stakeholders who argue that arbitrary location rules can hinder business growth. Additionally, the bill stipulates that potential casino operators must establish separate companies and secure agreements with hotels, which complicates the licensing process.
