Nepal increases casino royalties amid warnings of impact on sector
Nepal’s 2026-27 budget doubles the annual royalty for mini casinos and raises fees for full-scale casinos.
Nepal.- The Nepalese government has increased the annual royalty fees for the country’s land-based casino sector under the Financial Bill for the 2026-27 fiscal year. The annual royalty for a full casino licence has increased from NPR50m (US$327,800) to NPR55m (US$360,600), while that for mini casinos, which operate electronic gaming machines, has doubled from NPR15m (US$98,300) to NPR30m (US$196,700).
The government said the changes are intended to increase state revenue. However, industry representatives argue that the sharp increase comes at a time when operators are already facing higher costs, including increased taxes on alcoholic beverages and rising salaries, interest rates and electricity and technology prices.
Operators warned that the higher royalty could make some electronic gaming venues financially unviable if operating costs continue to rise. They also argued that any closures would reduce not only royalty payments but also government income from corporate taxes, value-added tax and excise duties.
They estimate that mini casinos directly employ between 4,500 and 5,000 people and indirectly support thousands more jobs in hotels, restaurants, transport companies, security services, food suppliers, IT and other businesses linked to tourism.
Operators have called on the government to review the new royalty structure through discussions involving casino operators, hotels, tourism experts, labour representatives and relevant government agencies.
