Nepal proposes to limit foreign ownership of casinos in new reforms

There would also be new restrictions on casino location.

Nepal.- A proposed Integrated Tourism Bill aims to introduce significant changes to Nepal’s gambling sector, including ownership limits, stricter licensing requirements and stronger compliance standards for casinos. Under the proposed law, foreign investors would only be allowed to hold a 49 per cent stake in joint ventures, down from the current 90 per cent. 

Another provision would require host hotels or resorts to have at least a 10 per cent stake in casino ownership. This aims to increase accountability and prevent past instances of casino operators avoiding taxes and royalty payments.

The bill also addresses the topic of casino proximity to international borders. It proposes reinstating the original 5km distance requirement for casinos, which was reduced to 3km in 2019. The bill would also ban casino operations in areas of religious or cultural importance and prohibit the transfer or subleasing of licences.

A social responsibility provision in the bill would require casinos to contribute at least 2 per cent of their annual profits to areas like tourism, education, and worker welfare.

The proposed caps on foreign direct investment (FDI) and casino placement measures have generated criticm in the industry, with some suggesting it could reduce business and deter international operators from investing in the industry.

Chandra Prakash Shrestha, president of the Siddhartha Hotel Association and owner of Nansc Hotel in Bhairahawa, said: “The gaming industry is a major taxpayer, and it should not be saddled with arbitrary location-based rules. Hotels near border areas were developed to cater to Indian and Bangladeshi tourists, and there should not be restrictions in doing so.”