Casinos in Nepal’s southern and eastern border regions are drawing increasing numbers of visitors, particularly from India, bringing new economic life to frontier towns such as Bhairahawa and Biratnagar. Local businesses say the influx has boosted hotel occupancy and protected surrounding commercial activity. Yet the growth has come with a rising chorus of concerns from authorities, industry representatives and residents about regulatory violations, security risks and alleged political protection benefiting illegal operations.
According to hotel and business associations, the surge in Indian visitors has been a lifeline for local tourism outside the Kathmandu Valley. Thakur Kumar Shrestha, former president of the Siddhartha Chamber of Commerce and Industry, said the increased customer flow has strengthened nearby businesses. However, he emphasised that operators must follow all state-mandated casino provisions to ensure both tourist safety and legal compliance. He warned that lax screening could allow prohibited items, including weapons, to cross borders under the guise of entertainment travel.
Growing public complaints about violations have prompted government agencies to intensify scrutiny. Allegations circulating on social media and in local reports have pointed to improper customer verification, misuse of identification documents, and illegal gaming practices. Chandra Prakash Shrestha, head of the Siddhartha Hotel Association, said casinos must verify visitors, maintain proper ID records, and ensure CCTV systems provide clear footage. While he cautioned that excessive restrictions could deter customers, he also stressed that operators should keep the industry “controversy-free” by adhering to regulations.
Authorities say some casinos have permitted Nepali nationals to enter despite a clear legal ban. Regulators have also objected to venues offering table games in locations where only electronic gaming equipment is allowed. Several agencies—including the Department of Tourism, the Revenue Investigation Office and district administration offices—have demanded explanations for suspected breaches, including the alleged use of fake Indian Aadhaar cards to bypass restrictions.
In response to mounting concerns, the Department of Tourism issued a 12-point directive on November 14, citing failures by licensed operators to comply fully with the Casino Regulation, the Tourism Act and the Money Laundering Prevention Act. The directive bans unapproved foreign-currency transactions, requires updated customer identification and biometric systems, mandates six-month CCTV storage, and prohibits operations through third-party contracts or at unlicensed sites. It also requires withholding-tax deductions on winnings and explicitly bans online gambling. Officials warned that future non-compliance during inspections would lead to legal action.
Meanwhile, the Revenue Investigation Office in Butwal has sought nine categories of information from casinos, including financial transactions, licence documentation, use of prohibited Indian currency, and records of Nepali nationals entering with falsified IDs. Only a few operators have submitted complete reports.
District officials say that early reviews suggest significant gaps in compliance. A tourism department representative noted that complaints about Nepalis entering casinos and poor record-keeping have risen steadily.
In the east, concerns are heightened by reported security incidents. At Biratnagar’s Ratna Hotel casino, a clash between groups linked to local political and business figures recently erupted under flashing gaming-floor lights. Although police arrived after the groups fled, authorities said the disturbance reflected deeper, long-standing issues—alleged political protection, unchecked violations and economic crimes. Similar incidents have been reported across towns from Biratnagar to Birtamod, Dhulabari and Kakarbhitta, raising questions about enforcement and political will.
While border casinos continue to draw tourists and generate revenue, officials and business leaders say meaningful oversight is essential if Nepal is to balance economic benefits with public safety, regulatory integrity and the rule of law.
