Casino can be operated either in premises of five-star hotel or four-star hotel in Nepal. Investors willing to operate casino should either establish separate hotel or operate casino after conducting lease agreement with a five-star or four-star hotel.

3. Process of Obtaining Casino License

To operate online casino in Nepal, prior to registration of a Company, one need to get an approval from the Ministry of Culture, Tourism and Civil Aviation (“Tourism Ministry”). After the Tourism Ministry grants an approval, a company should be registered and application for casino license should be applied. Detail procedure for obtaining casino license in Nepal is as mentioned:

STEPS	DETAIL PROCESS
STEP 1	An application should be submitted to the Tourism Ministry along with a financial proposal and proposed Articles of Association and Memorandum of Association of the company for prior approval.
STEP 2	If the Tourism Ministry deems it appropriate, then FDI approval has to be obtained from the Department of Industry (“DOI”).
STEP 3	Once the approval from DOI is granted, the company should acquire a Letter of Intent ("LOI"). After granting LOI, the company should be registered in the Office of Company Registrar ("OCR") as per rule 3 of the regulation.
STEP 4	Register the business at the local government. Receive the Tax Certificate. Register the company as an industry before DOI. Receive NRB approval for the investment.
STEP 5	After fulfilling all the requirements prescribed by the Tourism Ministry, the Ministry shall provide the Casino License.

4. Document Required List

The list of documents required for foreign investors to operate casino in Nepal are as mentioned:

S.N.	Documents
1.	Memorandum of Association and Article of Association of Investor (Notarized)
2.	Copy of Passport in case of Individual Investor (Notarized)
3.	Company profile of the investing company (Bio Data in case of an individual investor)
4.	Copy of Passports of all Directors and shareholders of Investor (Notarized)
5.	Copy of passport/citizenship of Investor’s authorized representative (Notarized)
6.	Power of attorney for procedural agent
7.	Schedule for investment in the industry
8.	Financial Credibility Certificate (FCC) of Investor issued by a local bank in the home country
9.	Latest audit report of Investor (Notarized)
10.	Resolution of Investor for investing in Nepal
11.	Signed company profile of the Investor
12.	Power of attorney authorizing the individuals to complete the approval and registration process.
13.	Joint Venture Agreement in case of two or more than two investors.

5. Grounds of Denial of Casino License

Prior approval for casino operation can be denied due to various reasons in Nepal. Those grounds for denial of casino operation pursuant to rule 6 of the Regulation are mentioned below:

a. If the proposed casino name matches an existing casino name,

b. If the Company is:

(i) Blacklisted in accordance with prevailing laws in relation to any transaction,

(ii) Due to the government or public bodies or pending payment of court fines,

(iii) Subject to the creditor's interest,

(iv) Of unsound mind,

v) Punished by a court in a criminal prosecution showing moral turpitude.

c. If the company does not have a paid-up capital of at least twenty-five crore rupees, except in the case of games played only through modern machines or equipment, where a paid-up capital of at least fifteen crore rupees is required for sports,

d. If the proposed casino is sensitive in terms of religious or cultural significance in the said area,

e. If the proposed casino site is within a distance of five kilometers from the international border area,

f. If it does not seem appropriate from the perspective of the tourism potential of the place to operate the casino.

6. Casino License Fee

A fee of Nepalese Rupees 2,00,00,000 shall be charged to obtain a license as per this regulation. However, in case of games played only through modern machines or equipment, a license fee of Nepalese Rupees 1,00,00,000 rupees will be charged.

Moreover, licensed casino holder while operating casino in Nepal must pay 5 (Five) crore Nepalese rupees royalty and for the casino operated via modern technology royalty of 1,50,00,000 Nepalese rupees must be paid as per Finance Act, 2023(2080) of Nepal.

7. Timeline

Approval takes around 6 to 8 months to receive the license and operate casino in Nepal.

8. Applicable Tax For Casino Business

Within the casino tax regime in Nepal, different tax rates apply to various financial transactions to ensure both revenue generation and fair distribution of tax burdens.

Corporate income derived from casino operations is subject to a 25% tax, calculated as a percentage of the income after deducting allowable expenses. Dividends distributed to shareholders from casino profits are taxed at a fixed rate of 5%. Additionally, lease transactions related to casino facilities incur a 10% tax based on the lease amount. Employee withholding tax, ranging from 1% to 35%, reflects the variable rates applicable to casino staff based on their income brackets. Furthermore, windfall gains from casino winnings, received by customers, face a 25% tax, which is withheld at the source.

9. Renewal of Casino License

For the renewal of the license, the licensee company must submit an application to the Ministry one month before expiry, attaching the following documents:

i) Proof of payment of royalty amount due,

ii) Audit report of the previous financial year,

iii) Details of directors, shareholders of the company, and share price,

iv) Tax paid up to the previous financial year - copy of the certificatem,

v) Bank guarantee renewal document and

vi) Other documents prescribed by the Ministry.

10. Withdrawal of Winning Amount

The licensed receiving company must charge the amount won by a player according to prevailing law, deducting the windfall benefit tax, and related contingent profits tax deducted. The remaining amount should be sent to the office of the Inland Revenue. Company must provide the certificate and details of the deducted contingent benefit tax to the concerned Internal Revenue Office. Every player in a casino by a licensed company should update the details of the given payment.

11. Obligation of Casino Operator

A licensed casino company must adhere the following stipulations:

i) The licensed company itself must provide training to employees on casino operations, management, internal security, and property. Income from refining and casino operations must be spent on social work,

ii) Conduct all business under the name of the Company,

iii) Prohibit players from engaging in gaming activities on credit or through loans,

iv) Ensure that gaming activities align with Nepali tradition, culture, and social dignity,

v) Capture clear photographs of every person entering the casino premises and connect CCTV to display gaming activities inside the venue. Preserve CCTV records for six months and provide them upon request by the Ministry,

vi) The licensed company must issue identification cards to employees associated with casino operations to facilitate their entry into casino premises,

vii) Separate entrances should be designated for employees and players involved in the operation of the casino by the licensed company,

viii) For casino employees and players associated with the operation, a separate register indicating entry and exit times must be maintained when entering or exiting the venue,

ix) The licensed company should keep records of the identity card scans of individuals entering the casino venue etc.

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