Legal Procedure for Obtaining Casino License in Nepal

Introduction

Nepal permits casino operations exclusively for foreign tourists under the Casino Regulation Act, 1968. The Government of Nepal regulates casino licensing through the Ministry of Culture, Tourism and Civil Aviation. Only foreign nationals can gamble in Nepali casinos, while Nepali citizens face legal prohibition from participating in casino gambling activities. The licensing process involves strict compliance with statutory requirements, financial guarantees, and operational standards. Applicants must demonstrate financial capacity, maintain proper infrastructure, and adhere to tourism promotion objectives. The legal framework ensures controlled casino operations within designated tourist facilities while protecting national interests and preventing illegal gambling activities.

Legal Framework Governing Casino Operations

The Casino Regulation Act, 2024 (1968) establishes the primary legal foundation for casino licensing in Nepal. This legislation defines casino operations, licensing requirements, and regulatory oversight mechanisms. The Act restricts casino gambling to foreign tourists holding valid passports and prohibits Nepali citizens from entering casino premises. The Ministry of Culture, Tourism and Civil Aviation exercises regulatory authority over casino licensing and operations. The Tourism Act, 2035 (1978) provides supplementary provisions regarding tourism-related business licensing. The Foreign Investment and Technology Transfer Act, 2075 (2019) governs foreign investment in casino establishments. These legal instruments collectively create a comprehensive regulatory framework for casino operations in Nepal.

Eligibility Criteria for Casino License

Applicants must operate registered hotels or tourist facilities meeting minimum star classification standards. The establishment must possess adequate infrastructure, including accommodation facilities, restaurants, and entertainment venues. Applicants must demonstrate financial capacity through bank guarantees and capital investment commitments. Foreign investors must comply with the Foreign Investment and Technology Transfer Act requirements. The applicant organization must maintain clean legal records without criminal convictions or regulatory violations. The proposed casino location must align with tourism development zones and government-approved areas. Applicants must submit detailed business plans demonstrating economic viability and tourism promotion objectives. The establishment must employ qualified personnel with expertise in casino management and hospitality services.

Required Documents for Casino License Application

Valid company registration certificate from the Office of Company Registrar showing legal entity status.
Tax clearance certificate from the Inland Revenue Department confirming compliance with tax obligations.
Hotel or tourist facility operating license from the Department of Tourism demonstrating existing tourism business.
Bank guarantee letter from a recognized commercial bank ensuring financial commitment and operational capacity.
Detailed architectural plans and layout designs of the proposed casino facility showing gaming areas.
Foreign investment approval certificate from the Department of Industry for foreign-owned establishments.
Police clearance certificates for all directors and major shareholders confirming absence of criminal records.
Environmental impact assessment report if required based on facility size and location specifications.
Business plan document outlining operational strategies, employment generation, and revenue projections.
Passport copies and visa documents for foreign investors demonstrating legal status in Nepal.

Step-by-Step Casino License Application Process

The applicant submits a formal application to the Ministry of Culture, Tourism and Civil Aviation with required documents.
The Ministry conducts preliminary review of application completeness and eligibility criteria compliance.
The applicant deposits the prescribed license fee and bank guarantee amount in government treasury.
The Ministry forms an inspection committee to evaluate the proposed casino facility and infrastructure.
The inspection committee visits the premises and prepares a detailed assessment report on facility standards.
The Ministry reviews the inspection report and verifies compliance with legal and operational requirements.
The applicant addresses any deficiencies or additional requirements identified during the inspection process.
The Ministry grants provisional approval subject to fulfillment of remaining conditions and requirements.
The applicant completes final preparations and obtains necessary clearances from relevant government agencies.
The Ministry issues the final casino license with specific terms, conditions, and operational restrictions.

License Fees and Financial Requirements

Fee Category	Amount (NPR)	Purpose
Application Fee	50,000	Initial application processing
License Fee (Annual)	5,000,000	Annual operating license renewal
Bank Guarantee	10,000,000	Financial security deposit
Inspection Fee	25,000	Facility inspection charges

The casino operator must maintain minimum paid-up capital as specified in the Foreign Investment and Technology Transfer Act. Annual license renewal requires timely payment of renewal fees before the expiration date. The bank guarantee remains valid throughout the license period and covers potential liabilities. Additional fees apply for license amendments, facility expansions, or operational modifications. The government may revise fee structures through official notifications published in the Nepal Gazette.

Operational Conditions and Restrictions

Casino operators must verify the foreign nationality of all patrons through valid passport inspection. Nepali citizens cannot enter casino premises under any circumstances, with strict enforcement penalties. The casino must operate within designated areas of the licensed hotel or tourist facility. Operating hours must comply with government-specified timings and local regulations. The establishment must maintain proper accounting records and submit regular financial reports to authorities. Casino operators must pay applicable taxes, including income tax, value-added tax, and entertainment tax. The facility must employ adequate security personnel and install surveillance systems for monitoring activities. Operators must prevent money laundering activities through proper customer identification and transaction monitoring procedures.

License Validity and Renewal Process

The casino license remains valid for one year from the date of issuance. License holders must submit renewal applications at least sixty days before the expiration date. The renewal application requires updated financial statements, tax clearance certificates, and compliance reports. The Ministry conducts periodic inspections to verify continued compliance with operational standards and legal requirements. Renewal approval depends on satisfactory performance records, tax compliance, and absence of regulatory violations. The operator must pay annual renewal fees and maintain the bank guarantee throughout the license period. Failure to renew the license before expiration results in automatic suspension of casino operations. The Ministry may impose additional conditions during renewal based on operational performance and regulatory changes.

Penalties for Non-Compliance

Violations of casino regulations attract monetary penalties ranging from NPR 100,000 to NPR 1,000,000. Allowing Nepali citizens to gamble results in immediate license suspension and criminal prosecution. Operating without a valid license constitutes a criminal offense punishable by imprisonment and fines. The Ministry may revoke licenses for serious violations, including money laundering, tax evasion, or fraudulent activities. Operators face penalties for failing to maintain proper records or submit required reports to authorities. Non-payment of taxes or license fees leads to license cancellation and legal proceedings. The government may blacklist violators from obtaining future casino licenses or tourism-related permits. Criminal penalties apply to operators engaging in illegal gambling activities or facilitating prohibited transactions.

Role of Axion Partners in Casino License Acquisition

Axion Partners stands as the No.1 service provider for casino license applications in Nepal. The firm provides comprehensive legal consultation on casino licensing requirements and regulatory compliance. Axion Partners assists clients in preparing complete application packages with all necessary documentation. The team conducts preliminary assessments of eligibility criteria and facility readiness before application submission. Axion Partners coordinates with government agencies throughout the application and inspection process. The firm ensures compliance with foreign investment regulations and facilitates necessary approvals. Axion Partners provides ongoing support for license renewals, operational compliance, and regulatory reporting requirements. The organization maintains updated knowledge of legal amendments and policy changes affecting casino operations.

Frequently Asked Questions

Can Nepali citizens obtain a casino license in Nepal?

Nepali citizens can obtain casino licenses as business owners, but they cannot participate in gambling activities. The Casino Regulation Act permits Nepali nationals to operate casinos serving foreign tourists exclusively. However, Nepali citizens face absolute prohibition from entering casino gaming areas or engaging in gambling activities.

What is the minimum investment required for a casino license?

The minimum investment depends on the hotel classification and facility standards required for casino operations. Applicants must maintain substantial paid-up capital, provide bank guarantees of NPR 10,000,000, and invest in infrastructure meeting tourism facility standards. Total investment typically exceeds NPR 50,000,000 for viable casino establishments.

How long does the casino license application process take?

The casino license application process typically requires six to twelve months from submission to final approval. The timeline depends on application completeness, inspection scheduling, and compliance with all regulatory requirements. Delays may occur if applicants need to address deficiencies or obtain additional clearances from government agencies.

Can foreign investors own 100% of a casino business in Nepal?

Foreign investors can own 100% of casino businesses in Nepal under the Foreign Investment and Technology Transfer Act. The law permits full foreign ownership in tourism-related industries, including casino operations. Foreign investors must comply with investment approval procedures and maintain proper legal documentation throughout operations.

What taxes apply to casino operations in Nepal?

Casino operators must pay corporate income tax at standard rates, value-added tax on services, and entertainment tax on gaming revenues. Additional taxes include withholding tax on employee salaries and dividend distribution tax on profit distributions. The government may impose special levies or tourism development fees on casino operations.

Can a casino license be transferred to another party?

Casino license transfers require prior approval from the Ministry of Culture, Tourism and Civil Aviation. The transferee must meet all eligibility criteria and submit a formal transfer application with required documents. The Ministry evaluates the transferee’s qualifications, financial capacity, and compliance history before approving license transfers.

What happens if a casino operates without a valid license?

Operating a casino without a valid license constitutes a criminal offense under the Casino Regulation Act. Violators face imprisonment, substantial monetary fines, and permanent prohibition from obtaining future casino licenses. The government may seize assets and initiate criminal proceedings against unauthorized casino operators.

Are online casino operations legal in Nepal?

Nepal does not currently permit online casino operations under existing legislation. The Casino Regulation Act applies exclusively to physical casino establishments within licensed tourist facilities. Online gambling activities remain unregulated and potentially subject to legal restrictions under general gambling prohibition laws.

What security measures must casinos implement?

Casinos must install comprehensive surveillance systems covering all gaming areas and entry points. The establishment must employ trained security personnel to verify patron identities and prevent unauthorized access. Operators must implement anti-money laundering procedures, maintain transaction records, and report suspicious activities to authorities.

Can casino licenses be revoked after issuance?

The Ministry can revoke casino licenses for serious violations, including allowing Nepali citizens to gamble, tax evasion, or fraudulent activities. License revocation requires formal proceedings with opportunities for the operator to respond to allegations. Revoked licenses cannot be reinstated, and operators face permanent disqualification from casino business.

Conclusion

The casino license acquisition process in Nepal requires strict adherence to legal requirements under the Casino Regulation Act, 2024. Applicants must demonstrate financial capacity, maintain proper infrastructure, and comply with tourism facility standards. The regulatory framework ensures controlled casino operations serving foreign tourists while protecting national interests. Successful license acquisition depends on complete documentation, facility readiness, and ongoing compliance with operational conditions. Axion Partners provides expert guidance throughout the licensing process, ensuring regulatory compliance and successful license acquisition. Prospective casino operators must understand legal obligations, financial commitments, and operational restrictions before entering this regulated industry. Professional legal assistance significantly enhances application success rates and ensures long-term operational compliance.