Nepal Strengthens Casino Oversight Through New 12-Point Regulatory Directive

The Nepalese government issued a 12-point directive through the Department of Tourism under the Ministry of Culture, Tourism and Civil Aviation that requires casinos to align operations with anti-money laundering and counter-terrorism financing requirements, and observers note this step connects directly to broader national efforts to exit the international grey list.

Casino operators must update customer biometric identification systems, maintain CCTV footage for a minimum of six months, deduct and report profit taxes promptly to the Inland Revenue Office, and cease all online gambling activities, while additional security and operational rules fill out the remaining points in the directive.

Background on the Regulatory Push

Nepal's casino sector operates under strict licensing that now faces heightened scrutiny because the Financial Action Task Force grey list status creates pressure for verifiable compliance improvements, and data from regulatory bodies shows past gaps in transaction monitoring and record-keeping.

The directive lists explicit obligations that tie into existing Casino Regulations 2082, which already outline prevention measures against money laundering and terrorist financing activities, yet enforcement now includes clearer timelines and documentation standards for every licensed venue.

Key Elements Covered in the Directive

Operators face requirements to implement biometric verification for all patrons at entry points, integrate these systems with central databases where applicable, and retain footage from surveillance cameras covering gaming floors and cash-handling areas for at least six months to support potential audits or investigations.

Tax compliance forms another core component because casinos must calculate profit taxes accurately, submit payments on schedule, and forward records to the Inland Revenue Office without delay, while the ban on online gambling extends to any digital platforms or remote betting services linked to physical casino licenses.

Additional rules address physical security upgrades, staff training on suspicious activity reporting, and coordination with law enforcement agencies, and non-compliance triggers legal proceedings that reference Nepal's overall strategy to demonstrate effective controls to international evaluators.

Implementation Timeline and Enforcement

Casinos received the directive with instructions to complete system updates and policy adjustments within specified windows, although exact deadlines vary by requirement and the Department of Tourism retains authority to conduct spot checks or request documentation at any time.

Those monitoring the sector report that venues already maintain basic CCTV setups, yet the six-month retention rule plus biometric upgrades represent new technical investments that smaller operators must now budget for, and the online gambling prohibition closes off any lingering digital extensions of land-based licenses.

Legal consequences for violations remain tied to the same framework used for grey list remediation efforts, which means regulators can initiate proceedings under anti-money laundering statutes or casino licensing conditions without needing additional legislation.

Impact on Licensed Casino Operations

Existing casinos in Kathmandu and other approved locations now operate under these unified standards that combine financial oversight with physical security protocols, and experts tracking compliance patterns note that prompt tax reporting reduces opportunities for discrepancies during cross-agency reviews.

The directive also reinforces separation between physical casino activities and any online offerings, a distinction that aligns with current licensing terms and prevents operators from expanding into unregulated digital spaces while holding a land-based permit.

Conclusion

This 12-point directive consolidates multiple regulatory expectations into a single enforceable document that the Department of Tourism will use to monitor and guide casino conduct going forward, and the connection to grey list exit strategies gives the measures added weight within Nepal's broader financial governance framework.