Online gambling has become a global industry. Many countries are regulating it to generate revenue and ensure fair play. Players must stay informed about the laws in their country. This will help them avoid breaking these laws and attracting penalties.
Nepal's stance on online gambling remains unclear despite the growing popularity of online casinos. If you are a Nepali player curious about the laws guiding online gambling in your country, then you are in the right place! This article contains everything you need to know about the current legal landscape of online gambling in Nepal.
Is Online Gambling Legal in Nepal?
Nepal prohibits all forms of gambling. The laws are governed by the Public Gambling Act of 1963, which was enacted before the rise of the Internet. This law does not directly address online gambling, so it exists in a legal gray area and is unregulated.
In 2014, the Nepali government shut down all land-based and online casinos in the country. Eight casinos reopened in 2015, but they’re limited to tourists. Nepalese citizens are not allowed to play there and could face penalties, such as fines if caught.
Are Nepali Players Taxed On Their Online Gambling Winnings?
Because online gambling is unregulated, Nepali players are not required to pay taxes on their winnings. We advise consulting tax experts in your country in case of any huge winnings or cashouts.
Penalties On Gambling in Nepal
Under Clause 125 of the Criminal Code, 2074, anyone caught participating in illegal gambling activities for the first time can face a jail sentence of up to three months or a fine of up to Rs 30,000.
If the person is caught again, they will be treated as a repeated offender. This means they can serve up to one year in jail with a fine of Rs 50,000.
Legal Alternatives For Nepal Online Players
Since the Public Gambling Act of 1963 does not directly address online gambling, it is a legal gray area. While there are no licensed online casinos in Nepal, players can turn to offshore casinos for their gambling needs.
However, this comes with its issues. Players must take care not to get caught, as this might attract penalties. Just because the government does not say much about it doesn’t mean they can’t be prosecuted.
Additionally, Nepali gamblers should play only at licensed and reputable international casinos. Check that the casino site holds a valid license from respected regulatory bodies like the Malta Gaming Authority or the UK Gambling Commission. These bodies have strict standards that casinos must meet before receiving a license. By reading the reviews of past players and industry experts, you can confirm how they treat their players and their reputation. By doing this, Nepalese players can prevent falling for fraudulent casinos and losing money.
Another concern is that most banks in Nepal won’t process transactions from online casinos. Players must first confirm with their bank whether they will allow the transactions. They can also consider alternatives like cryptocurrencies.
Cryptocurrency and Online Gambling
There is an increasing use of cryptocurrency in the Nepali online gaming space. Cryptos like Bitcoin and ETH offer privacy and allow players to remain anonymous. They are also super fast and have negligible transaction fees. The good news is many online gambling platforms accept cryptocurrencies.
Players must be careful when using this payment option. Cryptocurrencies are generally untraceable and irreversible. This means players must ensure they play at a reputable online casino to prevent loss of funds. There is also the issue of cryptocurrencies' volatility; the value when you make your deposit might differ when you withdraw.
Conclusion
The legality of Online Gambling in Nepal is currently unclear, and there are no legal online casinos for players to play at. The good news is that many international casino sites accept Nepalese players. However, it is important for Nepalese players to do their due diligence to protect themselves by playing only at licensed and reputable casino websites.
