Gambling refers to any activities where people wager money or valuables on uncertain outcomes, hoping to win more in return. These games primarily rely on chance rather than skill, with results determined mostly or entirely by luck. Common examples include lotteries, dice games. 

Whereas, betting means gambling on events like games or races, where skill can influence the outcome unlike luck-based games like dice.

Online gambling encompasses internet-based activity operated via websites, apps (e.g. 1xBet, Cash App) or cryptocurrency exchanges (e.g. Biance) where participants risk monetary or digital assets on games of chance or skill. Nepal prohibits all such practices under General law (Muluki Criminal Code sec 125(1)

a. Muluki Criminal Code 2074 section (125) 

Muluki Criminal Code Act Section 125 has described gambling as “gambling” means a game or process of any type to be so played by betting as to gain, lose or win any kind of movable or immovable property or return depending on the win or loss of others. 

b. Nepal Rastra Bank (NRB) Act 2058 Section 95

 Any person shall be deemed to have committed an offence if they: 

 NRB have right to issues any notice or directives regarding the monetary regulation, debenture, loan, electronic device, foreign exchange activities. 

NRB directives declared online betting and gambling illegal connecting with cryptocurrency/virtual currencies.  

Penalties section (96)- violations of NRB directives under Section 95 shall be punishable by: 

1. Confiscation of property obtained through the offense, 
2. A fine amounting to three times the value of the involved property, 
3. Imprisonment for up to 7 years, or
4. Both fine and imprisonment 

c. The Casino Act 2019:  This Law Prohibits Nepali Citizens from entering or gambling in casinos. Restricts to protects local Nepali citizens from potential gambling-related social issues.

d. The Casino Regulation

The figure below outlines the authorities that may involve in Gambling and Betting cases. 
 

   A.  Gambling: Section 125 (1)
 

B. Betting: Section 125 (4), (5), (6) (7)

Investigation authorities arrests the suspects, investigate on the basis of Section 125 (1) (4) which actually do not comply legally. No specific laws or acts address online gambling and betting however chargesheet is been filed based on above stated laws. 

Legislation/Law have not imagined about online concept still. Above stated laws only mention about the physical gambling and betting. No clarity on legal provision about online gambling and betting laws. In meantime absence of word online has put this crime in gray area. Some cases have been registered under cyber bureau and some in the court directly as online crime.

1. Specialized lawyers: 

• Criminal Defense Attorneys handles cases involving charges of online gambling and betting 
• Cyber law experts-address issues related to digital transactions and online activities under the Electronic Transactions Act. 
• Financial Crime Lawyers assist with cases involving illegal monetary transfers linked to gambling. 

       2.Legal Aid:

• It is limited, as gambling offenses are typically viewed as criminal rather than social issues. 

In recent years, Nepal has experienced a significant rise in gambling and betting activities, driven by digital advancements and regulatory loopholes. While traditional gambling operations continue, there has been explosive growth in online platforms including international betting sites like 1xBet and Juwa 365, cryptocurrency exchanges such as Biance, and even social media applications including TikTok. 

The Muluki Criminal Code (General Code) does not specifically address online gambling; it broadly prohibits only physical betting and gambling however it does not address virtual gambling and betting. In a meantime government attorney authorities and investigation authorities are incorporating physical gambling and betting legal clauses in virtual gambling and betting. The Electronic Transactions Act, 2063 and Nepal Rastra Bank’s directives, and Advertisement Act, 2076 further extend these restrictions to digital platforms by:

• Banning financial transactions for gambling purposes.
• Blocking access to international gambling websites.
• Prohibiting cryptocurrency use for betting activities.