Legislators in Nepal have proposed a slew of gambling industry amendments in a new Tourism Bill. The regulatory amendments are expected to catapult the local gambling realm into a new era of accountability and expanded revenue potential for domestic investors and tax coffers.
To ramp up its burgeoning casino industry, the government of Nepal has moved to table a new Tourism Bill aimed at tightening up its casino laws. This new bill is expected to replace the Casino Act of 2018 and reshape the Southern Asia nation’s gambling sector as it gears up for rapid expansion.
The most critical component of the proposed guidelines is the reduction in the permissible equity of foreign investors. Based on the present-day Casino Act of 2018, foreign investors are allowed to hold up to 90% equity in local Nepal casino operations.
Now, the new Tourism Bill will give more priority to Nepali investors by slashing foreign ownership, capping the equity to a maximum of 49%. The policy change will thus empower local stakeholders following concerns that if foreign capital is left unchecked in the casino sector, it may end up overshadowing local business interests.
Further, a shareholding of at least 10% must belong to the hosting casino. As a result, local hospitality service companies will retain a vested interest in financial accountability, boosting operational transparency and regulatory oversight.
Nepalese lawmakers are also looking to streamline the local operational landscape. For example, gambling companies that previously obtained multiple licenses for several locations will be forced to either downscale or consolidate their various operations.
Further, the minimum distance between casino venues and Nepal’s international borders will be increased to 5 kilometers from the current 3 kilometers. Initially, the buffer zone was 5 kilometers, but a 2019 Cabinet amendment reduced it to 3 kilometers in a bid to foster tourism from neighboring countries.
Now, legislators want to reinstate the original 5-kilometer limit. Nonetheless, there’s still a grandfather clause that will let casinos already running their operations within the 3-kilometer radius continue as they are.
Gambling entities are now required to part with a licensing fee of Rs25 million (~US$182,000) for casino operations and Rs10 million (~US$73,000) for electronic gaming. On top of that, there will be a non-refundable application levy of Rs1 million (~US$7,000).
Meanwhile, annual tariffs for fully-fledged casinos and mini-casinos have been increased steeply to Rs50 million (~US365,000) and Rs15 million (~US$109,000), respectively, according to Nepal’s Financial Act for 2024–25.
These licenses are all subject to renewal every year. There will be thorough record-keeping and reporting to keep tabs on penalties such as enforced shutdowns and forced payments of tax defaulters.
Industry stakeholders have had missed reactions, with many citing that some restrictions, such as the location rules, are ‘senseless’ as they will end up stifling growth.
Likewise, there has been some contention about the fact that the new Tourism Bill hasn’t touched on the explicit ban on gambling for Nepali citizens. While the said prohibition was designed to prevent problem gambling among residents, silence on the matter leaves some ambiguity on the nation’s future gambling policy.
Even though there are a couple of challenges, the proposed Tourism Bill presents some incredible opportunities for Nepal’s rapidly growing gambling scene.
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