Nepal has increased annual royalty fees for its land-based casino industry through the Financial Bill for the budget for the 2026-27 fiscal year, raising costs for both full scale casinos and electronic gaming venues. The changes form part of the government’s latest budget measures aimed at increasing state revenue.
Under the new provisions, the annual royalty for a full casino licence has increased from NPR50 million ($327,800) to NPR55 million ($360,600). The royalty for mini casinos, which operate electronic gaming machines, has doubled from NPR15 million ($98,300) to NPR30 million ($196,700).
The revised fees apply to Nepal’s land based casino sector, which operates mainly from hotels and resorts. Licensed casinos in Nepal are generally restricted to foreign visitors, with Nepali citizens prohibited from gambling in these venues under the existing regulatory framework.
Mini casino operators raise concerns
According to local media Ratopati, representatives of Nepal’s mini casino industry said the higher royalty will add to operating costs already affected by higher taxes on alcoholic beverages, rising employee salaries, bank interest payments, electricity charges, technology maintenance and other administrative expenses.
Industry representatives stated that the increase was introduced with the objective of raising government revenue. They said the financial impact on operators could become more significant when combined with other rising business costs.
The industry estimates that land based mini casinos directly employ between 4,500 and 5,000 people across Nepal. Operators also said thousands of additional jobs depend indirectly on casino activity through hotels, restaurants, transport services, security companies, cleaning contractors, food suppliers, information technology providers and banks.
Tourism links highlighted
Casino operators said land based casinos remain closely connected to Nepal’s tourism sector because most venues are located within hotels and resorts serving international visitors.
According to industry representatives, casinos contribute to hotel occupancy and encourage longer stays by foreign tourists. They also said the sector supports foreign currency earnings and private investment in hospitality infrastructure.
Nepal has introduced several regulatory reforms for its casino sector over the past two years, including stronger anti money laundering requirements, biometric entry systems, stricter know your customer procedures and higher capital requirements for operators. These measures were introduced alongside wider efforts to strengthen regulatory oversight of the industry.
Industry calls for policy review
Casino operators said the increase in royalty could reduce the financial viability of some electronic gaming venues if costs continue to rise.
Industry representatives argued that if mini casinos close, government revenue from other sources such as corporate income tax, value added tax and excise duties could also be affected alongside royalty payments. They estimated that the long term revenue impact could exceed NPR1.5 billion ($9.8 million) annually if a significant number of operators exit the market.
The industry has called for discussions between casino operators, hotel businesses, tourism experts, labour representatives and government agencies to review the new royalty structure and related taxes.
The latest budget measures come as Nepal continues to reshape its casino sector through regulatory reforms. The government has also proposed wider changes under the Integrated Tourism Bill, including revised ownership rules and updated licensing requirements for land based casinos.
Don’t just read the news, stay ahead of it. Subscribe HERE to SiGMA’s Top 10 News countdown for stories shaping iGaming’s future, weekly insights from the world’s biggest iGaming community, and exclusive subscriber-only offers.
