Nepal has increased annual royalty fees for land-based casinos under its 2026–27 Financial Bill, raising costs for both full-scale and mini casinos as part of the government’s effort to boost state revenue.
The new fee structure has drawn concern from casino operators, who warn that higher operating costs could place additional pressure on the industry, affecting tourism, employment, and tax revenue.
Annual Royalty Fees Increase
Under the revised framework, the annual royalty for a full casino licence has increased from NPR50 million (US$327,800) to NPR55 million (US$360,600).
Mini casinos, which primarily operate electronic gaming machines, face a larger increase. Their annual royalty has doubled from NPR15 million (US$98,300) to NPR30 million (US$196,700).
The revised rates took effect under Nepal’s Financial Bill for the 2026–27 fiscal year and apply to all eligible land-based casino operators.
Operators Cite Rising Costs
Casino operators said the higher royalty fees come at a time when the industry is already facing increasing operating expenses.
Industry representatives pointed to higher taxes on alcoholic beverages, rising wages, increased interest rates, and higher electricity costs as factors that have significantly raised business expenses.
Operators warned that some mini casinos may struggle to remain financially viable, particularly venues operating with narrower profit margins.
Concerns Over Tourism and Employment
Industry groups also cautioned that casino closures could reduce government revenue by lowering collections from corporate taxes, value-added tax, and excise duties in addition to royalty payments.
According to operators, the mini casino sector directly employs between 4,500 and 5,000 people, while supporting thousands of additional jobs across hotels, restaurants, transport services, security, food supply, and other tourism-related industries.
Industry Calls for Review
Casino operators have urged the government to reconsider the revised royalty structure through discussions involving industry representatives, tourism experts, labour groups, hotels, and relevant government agencies.
While the industry continues to seek a review, the higher royalty fees remain in effect under Nepal’s 2026–27 budget.
