The debate over gambling regulation has returned to the center of Nepal's political agenda after Hari Pant, Member of Parliament for Parsa-1 and president of the Rastriya Swatantra Party (RSP) in Parsa, called on the government to strictly prohibit Nepali citizens from entering casinos operating in Birgunj and surrounding areas.
Speaking before the House of Representatives on 7 July 2026, Pant argued that casinos established to attract tourists from India and other foreign countries are allegedly allowing residents to gamble with the apparent complicity of local administrative authorities and police.
Pant stated that easy access to these casinos has caused significant financial losses for merchants, young entrepreneurs, professionals and middle-class families in Parsa, while also contributing to gambling addiction and social problems. He further criticized the government for failing to act on concerns previously raised in Parliament, saying those issues had not been translated into concrete enforcement measures.
The controversy centers on Birgunj, the key border city adjacent to Raxaul, India, where several casino hotels have developed alongside growing cross-border tourism. Properties associated with the local gaming market include Hotel Suraj, Hotel Vishwa, Hotel Diyalo (Diyalo Lords Plaza) and Clarks Resort Birgunj. Nepalese law permits casinos to operate for foreign tourists but explicitly prohibits Nepali citizens from entering or gambling. Compliance is overseen by the Department of Tourism, under the Ministry of Culture, Tourism and Civil Aviation.
The parliamentary criticism comes as Nepal continues reviewing its gaming regulations. Since November 2025, the country has enforced a 12-point regulatory directive strengthening casino oversight through stricter customer identification, anti-money laundering (AML) controls, operational monitoring and broader compliance requirements. At the same time, the government is advancing the Integrated Tourism Bill, which proposes tighter casino regulations, a 49% cap on foreign ownership, revised location requirements and stricter licensing standards.
Pant's intervention has turned Birgunj into the latest focal point of Nepal's casino policy debate. Should the allegations be substantiated, authorities could launch inspections, review casino licenses and impose sanctions on operators found to have admitted Nepali citizens in violation of the country's gaming legislation.
