Nepal’s young generation caught in the web of e-betting

KATHMANDU:- Under Section 125 of the National Penal (Code) Act, 2074, gambling and betting—or facilitating such activities—are considered completely illegal and unlawful in Nepal. Legal provisions stipulate that those involved in such activities face, for a first offense, imprisonment for up to three months or a fine of up to 30,000 rupees; for a second offense, they face imprisonment for up to six months and a fine of up to 50,000 rupees. Furthermore, any equipment used for gambling, as well as any movable or immovable property acquired through gambling, is subject to confiscation.

Although existing laws regarding gambling and betting provide for imprisonment and fines, their enforcement has proven to be weak. There is a growing interest among some young people—driven by dreams of becoming wealthy overnight—in digital or online betting. In closed rooms, groups of individuals often scramble to participate in online betting using mobile phones, laptops, or tablets. Within minutes, hundreds of thousands of rupees are won or lost. The allure of earning high returns in a short period, without any hassle, is what draws these young people toward such activities.

Numerous apps are providing platforms that make betting easy and accessible for the younger generation. Even though the operation of such platforms has been prohibited, Nepali youth continue to get drawn into betting by using Virtual Private Networks (VPNs). Since there is no direct interaction or prior acquaintance between the gamblers and the operators—and because participants often use fictitious names—many perceive online gambling as a “safe” activity, leading to a growing number of people engaging in it.

Banned in other countries: Among the various apps frequently used for gambling, ‘1xBet’ is the most widely used platform for online betting globally. Although banned in many countries, this betting platform continues to operate in Nepal. Although this app is currently headquartered in Cyprus, its origins can be traced back to Russia in 2007. Some betting apps that claim to be official or legally legitimate are not actually registered anywhere. Similarly, in Nepal, there is no evidence of them being registered with any official authority, nor do they appear to have established offices or bank accounts.

Instead, it appears that betting operators entice artists, YouTubers, and young people with the prospect of commissions, enlisting them to promote their services or act as agents. Through these agents, they sell the dream of becoming wealthy overnight to other young people; they then misuse these individuals’ citizenship documents and SIM cards to open accounts in various digital wallets and banks, which are subsequently used for transferring funds. When users deposit money into a betting account, they do not actually transfer funds directly into the account; instead, they send the money to an agent’s digital wallet or bank account. In return, the agent loads virtual points or a balance into the user’s betting wallet. Users then begin placing bets using these virtual points.

While e-betting is prohibited in most countries around the world—including Nepal—an investigation by the Nepal Police has revealed that it is, in fact, active, with daily transactions amounting to hundreds of thousands of rupees. One such method is “surrogate advertising”: since the direct promotion of banned or illegal betting apps is prohibited, operators create fake sports news or gaming sites—using names or logos similar to the actual platforms—to carry out their promotional activities.

Using social media, such companies entice popular YouTubers and influencers with the promise of large sums of money or commissions. They promote their services by inserting 10–15 second clips at the beginning or middle of YouTube videos, or by including links in the video descriptions. On platforms like TikTok or in vlogs, they employ tactics such as wearing T-shirts featuring the betting app’s logo, displaying the app’s logo, or presenting fabricated evidence of winning large amounts of money.

Since online betting apps are tech-friendly, the younger generation often falls prey to the allure of such illegal and harmful promotions and advertisements, leading them to engage in unlawful activities.

The allure of easy money: From the outside, online betting may appear to be a fun game or a way to earn money quickly and easily, but a harsh reality lies beneath—one that is leaving thousands of young people and their families financially and mentally devastated. Initially, new users are allowed to win small amounts to attract them. They are led to believe that these platforms offer a way to earn high returns in a short period. This triggers the release of a chemical called ‘dopamine’ in the brain, creating the illusion that winning is easy.

In reality, 99 percent of users lose money. If someone wins 10,000 rupees, the system creates an environment where, in attempting to withdraw those winnings or win more, the user ends up losing that 10,000 rupees again. Even though the volume of transactions may appear to be in the millions, the earnings remain lower than the investment. For young people, the addiction to this is no less severe than an addiction to drugs. In an attempt to recover their losses, users end up losing everything they own. Unable to bear the burden of debt, pressure from their families, and intense self-reproach, many fall into depression. Police investigations have even revealed cases where some individuals have gone so far as to commit suicide.

Transactions Reaching Millions: The Nepal Telecommunications Authority has stated that, since the start of the FIFA World Cup, it has shut down 5,465 websites and apps involved in online betting and unethical or illegal financial transactions. Although various betting websites operating in Nepal have been blocked, the trend of these platforms resurfacing under new names and new domains continues.

The Nepal Police has taken into custody and brought under legal action over 500 young individuals involved in e-betting and gambling; investigations revealed that transactions ranging from 500,000 to tens of millions of rupees passed through their personal accounts. Furthermore, since the year 2083 BS, approximately 5,500 betting accounts—including user accounts, dummy accounts, and fraudulent accounts—have been shut down.

According to incident reports from regulatory bodies, individuals aged 20 to 25 are the most active participants in illegal betting activities. A concerted effort—involving families, society, the banking sector, and the government—is essential to curb the addiction to online betting and dismantle its illicit networks. As this constitutes a social malaise, it is crucial for individuals and their families to remain vigilant. It is essential for parents to pay attention to their children’s daily activities. No one should allow unknown individuals to use—or misuse—their citizenship documents, passports, or SIM cards. Since blocking only the main website is insufficient, the government must utilize AI systems to immediately block the alternative or “mirror” domains that are continuously being created.