The government has introduced a new 12-point directive aimed at bringing casinos under tighter legal and regulatory oversight, particularly in relation to anti-money laundering and counter-terrorist financing compliance.
According to the state-run news agency RSS, the Department of Tourism under the Ministry of Culture, Tourism and Civil Aviation issued the directive to all casinos currently in operation, emphasizing full adherence to the Asset (Money) Laundering Prevention Act and all related provisions. The directive also reinforces compliance with guidelines issued earlier on preventing money laundering and the financing of terrorist activities.
The Department reminded casino operators that they are prohibited from dealing in foreign currency without prior approval from Nepal Rastra Bank. As per the Casino Regulation 2082 and the Department’s earlier instructions, all records related to foreign exchange and financial reporting must be submitted to the Department on a regular basis.
Read: NRB Reminds Casinos to Seek Approval for Foreign Currency Dealings
Under the new rules, casinos must ensure proper customer identification systems, including updated biometric records, and provide such information to the Department whenever required. They must also retain CCTV footage of all on-premises activities for at least six months. Casinos and hotels housing casinos must also ensure adequate security both inside and outside their premises. Online or internet-based gambling has also been banned.
Operation of casinos through third parties or through any arrangement other than the licensed operator has been strictly prohibited. Likewise, casinos may operate only at their approved locations, and operation from any other site has been fully banned.
The directive requires casinos to deduct the required windfall tax from players’ winnings before payout. The licensed operator must then submit proof of the tax deduction to the relevant Inland Revenue Office and inform the Department immediately.
The Department further warned that any deviation from legal and regulatory standards will result in immediate action as prescribed by law.
The latest directive follows the government’s broader efforts to tighten casino regulation. Earlier, the revised Casino Regulation increased the minimum paid-up capital requirements and updated operational standards for both large and small casinos, requiring full compliance by mid-April 2026.
Read: Casinos Face Higher Capital Requirement Under Revised Regulation
Under the new rules, operators of large casinos must maintain a minimum paid-up capital of Rs 300 million, while small casinos are required to hold at least Rs 200 million. Existing operators with capital below these thresholds must comply with the new requirements within the timeframe.
The Department said the new initiative is a part of Nepal’s ongoing efforts to exit the FATF greylist. Casinos have been identified as a high-risk sector for money laundering and terror financing, and strengthening compliance in this area is essential for meeting international standards. By tightening monitoring, enforcing customer-verification systems, and improving reporting requirements, the government aims to demonstrate effective progress that will support Nepal’s removal from the greylist.
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