The government is preparing to formally enact a provision that allows a single company (such as a hotel or resort) to operate only one casino. Although this rule was outlined in the Casino Regulations 2013, it has not been effectively enforced till date.
The Tourism Bill, 2024 — recently presented in the House of Representatives to amend the Tourism Act, 1978 — includes a clear provision limiting one company to one casino.
According to sources at the Department of Tourism, although the one-casino-per-company rule has been in place since 2013, it has not been implemented so far. Some companies have operated up to four casinos by securing interim orders from the court. While the regulations prohibit such practices, these companies have continued running multiple casinos based on court rulings, the source added.
The proposed bill now seeks to end this practice by requiring companies operating more than one casino to reduce their operations to a single casino by mid-July 2025. Any additional casinos must be separated into independent companies.
Currently, 26 casinos are registered with the Department of Tourism, most of them within the Kathmandu Valley. Others are operated by four- and five-star hotels and resorts in the Terai region. Authorities are preparing to strictly enforce the rule, ensuring that no company is licensed to operate more than one casino offering betting games through traditional or modern machines for the entertainment of tourists.
The bill also states that if a company is running multiple casinos under a single license, it must select one casino to continue operations by mid-July 2025.
Further, the bill proposes allowing casinos to be operated through joint ventures with foreign companies. While existing regulations do not clearly define ownership ratios between foreign and domestic investors, the new bill specifies that foreign investors may hold up to 49 percent ownership in joint-venture casinos operating in Nepal. The remaining 51 percent must be held by domestic investors.
Previously, there was no deadline for correcting shareholding structures that did not comply with the prescribed ratios. Under the new bill, companies must correct their shareholding structures within one year.
Additionally, the bill plans to introduce a provision stating that casino licenses will not be renewed if operations are not based within a four-star or higher-rated hotel or resort. It also stipulates that if a casino is operated within such a hotel or resort, the hotel or resort must hold at least a 10 percent ownership stake in the casino.
