Nepal’s Tourism Reform Bill Proposes Major Changes For Casino Regulation

Nepal’s lawmakers have moved into a crucial stage of the proposed overhaul of its tourism laws after submitting amendments to the Tourism Bill 2081.

According to local publication The Tourism Times, 58 members of the House of Representatives have proposed changes across casino oversight, ownership structures, anti-money laundering (AML) requirements, licensing rules and foreign investment.

Speaker Dol Prasad Aryal has accepted the amendments, which will now proceed to the parliamentary committee stage for review before lawmakers agree on a final version.

Casino oversight proposals target ownership transparency and AML

Several lawmakers want to replace the Department of Tourism as the main gambling regulator with an independent Casino Regulatory Unit operating under the Ministry of Culture, Tourism and Civil Aviation.

The proposed framework also introduces stricter transparency requirements for casino operators. Companies would have to disclose all ultimate beneficial owners holding at least 10 per cent of a licensed business, while any ownership transfer would require regulatory approval before completion.

AML compliance is another key focus of the proposed reforms. Lawmakers are pushing for mandatory Know Your Customer procedures, dedicated AML compliance officers, Suspicious Transaction Reports and real-time monitoring by Nepal’s Financial Intelligence Unit.

These proposals build on Nepal’s recent efforts to tighten financial crime controls as authorities modernise the country’s gambling framework.

Ownership rules and licensing reforms remain under discussion

Furthermore, the amendments propose major changes to casino ownership and licensing. Some lawmakers want foreign ownership capped at 49 per cent, while others argue casinos should only operate inside hotels or resorts with between 25 and 30 per cent local ownership.

Another proposal creates a transition period for companies currently operating multiple casinos under a single licence to either establish separate corporate entities or retain only one licence.

Lawmakers from Madhesh Province have taken a different approach, proposing fewer restrictions on casino licensing. Some have also suggested developing designated casino zones or casino villages after detailed feasibility studies.

Beyond gambling, the Tourism Bill includes reforms covering Nepal’s wider tourism strategy. Proposed measures include stricter qualification requirements for Everest climbers, a digital nomad visa programme for overseas remote workers and new tourism categories such as wellness tourism, astro tourism, tea tourism, agricultural tourism, indigenous tourism, workation tourism, glamping and virtual tourism.

Several lawmakers have also proposed creating an autonomous Nepal Tourism Authority with separate regulatory and promotional responsibilities.

Casino royalty increases add pressure on the industry

The parliamentary review comes after Nepal’s recent decision to increase annual royalty fees for land-based casinos.

Under the 2026 to 2027 Financial Bill, annual royalties for full casinos increased from NPR50 million to NPR55 million, while mini-casinos operating electronic gaming machines saw their annual fees double from NPR15 million to NPR30 million.

Mini-casino operators have warned that rising licence costs and increasing operating expenses could affect the commercial viability of some venues.

Industry representatives note that most casinos operate inside hotels and resorts serving international visitors. They argue the sector is closely connected to Nepal’s tourism economy and any reduction in licensed operations could affect employment, investment and government revenue plus royalty collections.