Nepal has increased annual casino royalties under its 2026/27 budget, with operators warning that the sharp rise for electronic gaming venues could make parts of the sector commercially unviable.
The annual royalty for a full casino licence has risen by 10% from NPR50m (US$327,800) to NPR55m ($360,600).
Mini-casinos, which primarily offer electronic gaming machines, face a much steeper increase. Their annual royalty has doubled from NPR15m ($98,300) to NPR30m ($196,700).
The changes were introduced through Nepal’s Financial Bill for the 2026/27 fiscal year as the government seeks to increase revenue from the land-based gaming sector.
Industry representatives argue that the higher charges come alongside rising salaries, interest costs, electricity bills, technology expenses and additional taxation affecting hospitality operations.
Operators have warned that some mini-casinos may struggle to absorb a 100% royalty increase, particularly where electronic gaming venues operate with lower revenue and smaller customer volumes than full scale casino resorts.
They also argue that closures would reduce government income from corporate taxation, VAT and excise duties, while affecting businesses linked to tourism and hospitality. The mini-casino segment is estimated to employ between 4,500 and 5,000 people directly, with additional jobs supported across hotels, restaurants, transport, security, technology and food supply businesses.
Nepal has previously faced difficulties collecting casino royalties, with licences revoked or threatened where operators failed to settle outstanding payments. The Department of Tourism reported in 2024 that 28 casino licences had been issued nationally and warned that permits could be cancelled where renewal requirements were not met.
Casino operators have called for the new structure to be reviewed through consultation with government departments, hotel businesses, tourism representatives and labour groups. The royalty increase strengthens the government’s immediate revenue position but places the greatest pressure on Nepal’s smaller electronic gaming operators.
