Kathmandu .The government has introduced a stringent 12-point directive aimed at bringing casinos—considered part of the commercial entertainment industry—under a stronger legal and regulatory framework.
The Department of Tourism, under the Ministry of Culture, Tourism and Civil Aviation, has instructed all operating casinos to fully comply with the provisions of the Anti-Money Laundering (AML) Act and related regulations. The department emphasized strict adherence to guidelines issued for preventing money laundering and the financing of terrorist activities.
The directive reiterates that casinos must not engage in any foreign currency transactions without acquiring permission from Nepal Rastra Bank. Casinos are required to regularly submit detailed reports to the department in line with the Casino Regulation 2024 and AML-related directives issued by the ministry.
Casinos must also maintain an updated customer identification system, including biometric details of players, and provide such information to the department upon request. Furthermore, all activities within casino premises must be recorded through CCTV, and the footage must be securely stored for at least six months.
The government has completely prohibited casinos from operating through third-party agreements or at any location other than the approved premises.
Before making payouts to players, casinos are required to deduct applicable windfall gain tax at the source, as mandated by law. After the deduction, the licensed casino operator must issue the player a tax deduction certificate and immediately submit the details to the relevant Internal Revenue Office, with a copy provided to the Tourism Department.
The directive also bans the operation of any online or internet-based gambling platforms. Casinos and hotels must ensure adequate security inside and outside their premises.
Additionally, the government emphasized Nepal’s commitment to implementing corrective actions required for exiting the FATF Grey List. It warned that failure to comply with risk-based inspection and monitoring under the 2024 standards will result in immediate legal action.
