Why Is Controlling Gambling Linked to Online Betting and Crypto Transactions Challenging?

Despite the government’s directive to shut down online betting apps and websites within 24 hours, resulting in the closure of thousands of platforms, officials acknowledge that fully implementing this decision remains challenging. Gambling, including betting and participation in games of chance, is legally banned in Nepal.

After Valendra Shah assumed office, the Ministry of Information and Communications Technology directed the Nepal Telecommunications Authority to immediately block all types of online gambling apps and websites. Following this order, internet service providers were instructed to shut down more than 711 websites and platforms, as confirmed by Nepal Telecommunications Authority officials. Meanwhile, the Nepal Rastra Bank has stated it is monitoring suspicious online betting transactions, but many remain difficult to detect due to employee-based transaction systems.

Pradeep Paudyal, Deputy Director of the Nepal Telecommunications Authority, stated that over 711 websites, including more than 50 reported by users, have been sent to internet service providers for closure. He said, “Various local service providers have reported blocking between 4,300 and 7,000 unique domains so far, and the process is ongoing.” The authority is also collecting data from multiple providers and reviewing technical challenges.

Officials from the Ministry of Information and Communications have warned of strict action against users of unauthorized apps and websites. According to Section 125, Subsection 4 of the Criminal Code 2074, engaging in or facilitating betting is illegal, punishable by up to one year in prison and a fine of up to NPR 10,000. Officials recognize that with the rise of online gambling incidents in Nepal, controlling it remains a significant challenge.