Gambling and Betting Law in Nepal : Case Prosecution Steps

Gambling is a broader term that includes betting as its forms. It involves direct participation in a game or activity of chance, such as playing card games, slot machines, roulette, etc. Betting is more specific activity within gambling. It encompasses wagering money or valuables on the outcome of an event, such as a person betting on the outcome of a football match or horse race.

Gambling and Betting laws differ widely from one country to another with each nation establishing its own regulation and standards. In Nepal, the act of gambling and betting is regulated by National Penal (Code) Act, 2074 (2017). 

This article provides insights into the gambling and betting laws in Nepal, covering their legal definition, punishments, trends, and distinction between game of skill and game of chance.

• National Penal (Code) Act, 2017 (2074) - It prohibits individuals from gambling and betting as well as from encouraging others to gamble and bet.
• Advertisement (Regulation) Act, 2019 (2076) –It prohibits advertisement of gambling and illegal sale of lotteries.

a) Gambling

According to Section 125(2) of the National Penal (Code) Act, 2074 (2017), gambling involves any game or process played by betting to gain, lose or win any movable or immovable property, or returns based on some contingency. It also includes betting or waging to gain or lose any such property or returns on the win or loss of others. 

However, a game played with the approval of the Government of Nepal for entertainment purposes in a public ceremony, fair, feast, festival, exhibition, which involves the loss or gain of small amount of movable property, is not considered as gambling. Additionally, lotteries operated with the approval of the authorized authority are not classified as gambling.

b) Betting

According to Section 125(5) of the National Penal (Code) Act, 2074 (2017), betting means to bet to lose or receive any movable, immovable property or consideration if any particular party wins or lose any game that can be played or caused to be played legally.

a) Gambling 

The punishment for gambling depends on the number of times it is committed by the same person.

Also, all instruments used for gambling and movable and immovable properties gained from gambling can be confiscated. But a house, room, place or means of transport where gambling took place will not be seized or confiscated. 

b) Betting

The term gambling and betting are interchangeably used but have some distinction.

As the offence of gambling and betting falls under the category of schedule-1 of National Penal code, 2074, district government attorney on behalf of Government of Nepal is responsible for initiating the case/ filing the charge sheet in the court. 

a) In gambling and betting cases in Nepal, the police or the investigating authority will arrest any person related to the offence and will present them before the adjudicating authority as soon as possible within 24 hours. The investigating authority can make an application for additional remand accompanied by the reasons and grounds for such detention, to the adjudicating authority through the government attorney office, and the adjudicating authority may remand such person in detention for a maximum period of twenty-five days at one time or several times upon studying the documents and hearing the pleadings of the legal practitioners concerned for the purpose of investigation on the case. 

b) In view of the proof and evidence collected by the investigating authority, the concerned government attorney will decide whether there is adequate evidence for instituting the case and will file a charge sheet against the accused in the concerned district court.

c) After filing the charge sheet, there will be a preliminary hearing in which the court will decide whether the accused will be kept in detention or he/she will be released on bail/bond or bank guarantee or on recognizance for the period of trial.

d) After that, court hearings will begin in which all the evidence collected by the investigating authority will be reviewed, witnesses will be questioned, deposition of the accused will be made and after completing all of this process, a judgement will be made by the judge.

e) In addition to charges related to gambling and betting, legal proceedings in such cases in Nepal often encompass a range of associated financial and cybercrimes. These may include the illegal use of cryptocurrency, unauthorized foreign exchange transactions, money laundering activities, and the operation of online gambling and betting platforms.

It might take upto 9 to 12 months for the court to make a decision in such cases. 

In recent years, Nepal has witnessed a surge in gambling and betting activities, fueled by technological advancements and ambiguous legal frameworks. While traditional gambling dens persist, online platforms such as 1XBet, Juwa 365, Binance and various platforms ranging from international betting sites to social media apps like TikTok. Most of the instance online gambling and betting case has relation with the crypto currency trading scheme. 

On February 3, 2025, A team from the Kathmandu valley crime investigation office raided and busted a gang of 24 persons (14 were from Nepal and 10 were Indian Nationals) who rented two houses in Lalitpur and transferred a large sum of money to India for online gambling. The online gamblers were depositing and withdrawing money through an Indian bank. They were found to be using more than 8 betting applications to gamble online.

These arrested were also involved in online as well as offline gambling depositing and withdrawing winnings from various bank accounts in India. During the investigation, the police found that these gamblers had conducted transactions worth of Rs 3.47 billion, 3.65 billion and Rs 612 million. Similarly, all the materials used in the online gambling by these arrested individuals were seized which included 57 Mobile phones, 13 laptops, 34 ATM’S, 88 Sim cards, 12 checkbooks, 8 Indian Aadhaar cards, and 6 passports. The police also investigated charges related to betting, cryptocurrency, and money laundering.

Similarly, the Central Investigation Bureau (CIB) of Nepal Police raided a call center and arrested 53 individuals from Satdobato, Lalitpur. They were involved in operating an online casino and other illegal activities. 85 laptops and 82 mobile phones were also seized during the raids by the authorities.

On 26 March, 2025, police arrested 11 Indian nationals who were involved in online Gambling, betting and cryptocurrency transactions totaling over Rs 2 billion by defrauding in IPL betting racket. In this case, the Kathmandu District Court granted the police a 7- day remand to further investigate the case. Upon their arrest, police seized several items, including 34 mobile phones, five laptops, four notebooks containing financial records, 14 Indian bank checkbooks, 27 ATM cards, and 40 SIM cards. 

On June 15, 2025 Police arrested Several Nepali Actors for their involvement in the betting app named 1xbet. The Kathmandu District Attorney office filed the cases against several actors on the charges of online betting, promoting 1xBet which is an online platform mainly used for betting on sports. According to the Police, the arrested individuals conducted transactions worth more than Rs 740 million. The arrested actors were charged according to the Section 125 of the National Penal Code, 2017 which prohibits Gambling and betting and The Advertisement Regulation Act, 2019 which prohibits advertisement related to gambling and betting in Nepal. They have also been charged with the financial crime of using illegal cryptocurrency in Nepal. The government attorney that has charged these people financial irregularities under the Nepal Rastra Bank Act has sought to collect a principal amount of Rs 650 million from the key accused.

On May 13, 2024, The Kathmandu Valley Crime Investigation Office has arrested a person on the charge of being involved in illegal gambling activities from Bhaktapur. The arrested person was involved in the collection of funds for betting purposes through betting applications such as 1X Bet, Juwa 365 which are used in sports and crypto betting. The preliminary investigation revealed that the arrested person conducted transactions amounting to Rs 2 billion 11 million 844 thousand 102 rupees. These transactions were traced across 56 bank accounts, linked to 11 Connect IPS accounts and 15 Esewa wallet accounts, registered under various individuals' mobile numbers.

On Nov 23, 2023, A police team from the Central Investigation Bureau (CIB) arrested a person who operates hundi and online gambling on the charges of running hundi, online gambling, cryptocurrency and illegal foreign exchange transactions. Police have recovered 8.969 million rupees, 7026 US dollars, three laptops, six CPUs, one teller machine, one CCTV NVR, eight mobile phones, two passports, one citizenship certificate and 64 bank cheques issued at different dates by different persons.

This set of cases indicates a significant rise in illegal online gambling and betting activities in Nepal, involving large-scale financial transactions, use of digital platforms, and cross-border networks.

Date of Publication: April 22, 2025 

Disclaimer: This article is provided for informational purposes only and does not constitute legal advice. It reflects the laws and practices in Nepal as of April 22, 2025. Readers are advised to consult qualified legal professionals for guidance on specific matters.