Prosecution of Gambling and Betting Case in Nepal

In general terms, Gambling is an activity in which individuals risk their money or something of value on such an event which has an uncertain outcome with the primary intent of winning additional money or material goods. There is an element of randomness or chance involved and the purpose is to win. It is usually based on a game of chance and the outcome is largely or entirely determined by luck. For example- Lottery, Dice games, Slot machines etc.

On the other hand, Betting is a form of gambling, but it usually involves placing a wager on the outcome of an event (like a sports match or race), often involving an element of skill or knowledge. Unlike gambling, it can be related to both chance and skill.

Following are the governing law for gambling and betting in Nepal: 

a. National penal Code, 2017(2074) is the governing law that prohibits Betting and Gambling and also imposes fines and punishment on persons who are involved in such activities. 

b. Advertisement act, 2019(2076) prohibits advertisement of gambling and illegal sale of lotteries.

c. Electronic transactions Act, 2008(2063)  

a. "Gambling" means a game or process of any type to be so played by betting as to gain, lose or win any kind of movable or immovable property or return, on the basis of contingency, and this term also includes any betting or waging so made by one who does not gamble himself or herself as to gain or lose any movable, immovable property or return depending on the win or loss of others.

However, games conducted with the approval of the Government of Nepal for entertainment during public events such as ceremonies, fairs, feasts, festivals, or exhibitions—where only a small amount of movable property is at stake—are not regarded as gambling. Likewise, lotteries run with the authorization of the designated authority are also not considered gambling.

b. A person who so bets that he or she will receive or lose any movable, immovable property or consideration if any particular party wins or loses any game or process that can be played, or caused to be played, is considered as “betting”. 

Following figure explains the process of prosecution of gambling and betting case in Nepal: 

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

a. For Gambling:

b. For Betting:

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 June 15, 2025, several Nepali sitcom actors were arrested by the police for their alleged involvement with the betting platform 1xBet, which is primarily used for sports betting. The Kathmandu District Attorney's Office has filed charges against these individuals for engaging in online betting and promoting 1xBet. According to police reports, the suspects were involved in transactions exceeding Rs 740 million.The actors have been charged under Section 125 of the National Penal Code, 2017, which prohibits gambling and betting, as well as the Advertisement Regulation Act, 2019, which bans advertising related to gambling and betting in Nepal. In addition, they face charges for committing financial crimes through the use of illegal cryptocurrency in the country. The government attorney, citing financial misconduct under the Nepal Rastra Bank Act, is seeking to recover a principal amount of Rs 650 million from the main accused. 

On January 22 2023, Police arrested a group of people who were involved in gambling with the help of the app TikTok. Between January 10-17, Kathmandu Valley crime investigation office nabbed four people from different places who were involved in organizing gambling via TikTok live. Transactions of over Rs 5 million were conducted using digital wallets. The gamblers who were running card games on TikTok often use nicknames. These are among the first cases of police nabbing gamblers on TikTok.

Similary 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.

Bhandari Law and Partners has established itself as a prominent legal firm in Nepal, particularly recognized for its expertise in handling cases related to gambling and betting. The firm has represented numerous clients involved in various legal matters concerning the rapidly evolving landscape of gambling laws in the country. With in-depth knowledge of Nepalese statutes and regulatory frameworks, Bhandari Law and Partners has provided strategic legal counsel and robust representation in both civil and criminal proceedings. Their work includes advising on the legality of betting operations, defending clients against prosecution, and guiding businesses through compliance with national regulations. This specialization has made them a go-to legal team for gambling-related issues in Nepal.

Date of Publication: 23 April 2025

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