The Government of Nepal has approved a significant increase in the annual royalties paid by casino operators through the Financial Bill 2026/27, adopted as part of the country's 2026-27 national budget. The measure, introduced by the Ministry of Finance, headed by Finance Minister Dr. Swarnim Wagle, aims to increase government revenue but has prompted strong concern from the gaming industry, which warns it could undermine tourism, employment and the financial sustainability of several gaming venues.
The Financial Bill forms part of the annual budget package presented by the government and enacted following parliamentary approval under Prime Minister Balendra Shah's administration.
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Under the new framework, the annual royalty for a full-scale casino licence rises from NPR50 million (US$327,800) to NPR55 million (US$360,600), representing a 10% increase. The most substantial change affects mini casinos, which primarily operate electronic gaming machines, where the annual royalty has doubled from NPR15 million (US$98,300) to NPR30 million (US$196,700). According to the government, the reform is intended to strengthen public finances at a time of broader fiscal adjustments.
Minister Khadka Raj Paudel
Industry representatives argue that the increase comes as operators are already facing higher taxes on alcoholic beverages, rising wages, higher interest rates and increasing electricity and technology costs. They warn that several mini casinos could become financially unviable, reducing not only royalty payments but also government revenue from corporate income tax, value-added tax (VAT) and excise duties. Operators estimate that mini casinos directly employ between 4,500 and 5,000 workers, while supporting thousands of additional jobs across hotels, restaurants, transport companies, security services, food suppliers, technology firms and other tourism-related businesses.
Casino operations in Nepal continue to be regulated under the Casino Regulation 2070 (2013), issued pursuant to the Tourism Act, and supervised by the Department of Tourism, which operates under the Ministry of Culture, Tourism and Civil Aviation, led by Minister Khadka Raj Paudel. The Department is responsible for licensing, regulatory compliance and royalty collection.
Licensed casino operators include Casino Mahjong, Millionaire's Club & Casino, Casino Pride, Casino Rad and CMG Club Casino, all of which are attached to luxury hotels and primarily serve foreign visitors, as Nepalese citizens remain prohibited from gambling in casinos. Operators have called on the government to open formal consultations with casinos, hotel operators, tourism experts, labour representatives and public authorities before the revised royalty structure is fully implemented.
