After the involvement of mobile wallets in the operation and transactions of online betting websites and apps, the government has initiated a process of monitoring and taking action against them . Especially after the screenshots of betting transactions made through Khalti by IME reached the Prime Minister's Office, instructions were sent to the Ministry of Communications to take immediate action against Khalti .

The 100 agenda for governance reforms approved by the Cabinet meeting on Chaitra 15 mentions that betting apps will be closed within 24 hours . Implementing this, the Ministry of Communications has stated that 261 such apps have been closed by Monday afternoon through the regulatory Nepal Telecommunication Authority.

The authority has identified more than 400 betting apps and websites hosted in various countries including Qatar and active in Nepal . While closing betting apps in this way, the Prime Minister's Office has also asked to take action against mobile wallets that facilitate such apps and help in transactions .

The Ministry of Communications has written to the Ministry of Finance to regulate and adopt the necessary procedures in this regard, saying that it does not have the authority to take action against the payment service provider. Now, the Ministry of Communications is expected to instruct the National Bank and the National Bank is expected to take necessary steps in this regard.

The Ministry of Communications had also written to the Nepal Advertising Board regarding Khalti. The board had asked Khalti for clarification on Monday, saying that it had openly promoted fantasy competitions related to the Indian Premier League. ‘The Ministry of Communications had sent us a letter regarding Khalti, and we have also received a complaint regarding the involvement of this app in betting promotion,’ said Board Chairman Laxman Humagain, ‘We have already sent a letter seeking clarification.’

Khalti CEO Pravin Regmi responded that he was not aware of the Advertising Board’s letter and that mobile wallets would not be linked to the betting app. “Mobile wallets are not linked to betting apps. We do KYC of any merchant when we integrate them into our system,” he said. “If we know that any merchant is involved in such betting sites, we do not give them our platform.”

However, there are signs that the government will be strict on digital wallets, saying that they help in illegal betting and betting activities.  “We have written to the Ministry of Finance on Monday to monitor payment service provider apps,” said Uday Bahadur Rana, Joint Secretary and Spokesperson of the Ministry of Communications. “Now the Ministry of Finance will instruct the National Bank in this regard.”

The ministry is ready to move forward in consultation with the National Bank in the coming days.  The National Bank has already instructed payment service providers (PSPs) and wallet companies to prevent suspicious transactions through wallets, said Guru Prasad Poudel, spokesperson of the bank.

Despite the ban on sending money directly to betting apps through wallets, the NRB has concluded that users are using ‘P2P’, i.e., one person to another. ‘In such transactions, suspicious accounts can be identified using AI technology or based on the frequency of transactions and repeated credits,’ said Spokesperson Poudel. ‘The wallet of a user sending money to a betting app can be closed at any time.’

The Ministry of Communications has stated that about 261 betting apps have been closed so far and the search for other such apps is ongoing. The ministry had written a letter to the Telecommunications Authority on Sunday itself directing it to close such illegal apps. Authority spokesperson Min Prasad Aryal informed that instructions were sent to all mobile and internet service providers to immediately close such apps and websites after receiving the letter from the ministry. According to him, the authority had called all internet service providers on Monday afternoon and reviewed the progress of the implementation. Aryal mentioned that while closing such apps, there is a challenge to be careful so that other necessary sites are not closed.

In Nepal, various platforms were seen to be active by asking celebrities to advertise on social media along with online betting apps like OneX Bet, Crixbet, and Melbet. Security agencies have said that such apps and digital wallets have become a means of making transactions and financial transactions, especially during the Nepal Premier League, Indian Premier League, and football and cricket competitions of various countries.

Users seem to be using easily available wallets to deposit the amount required to participate in online betting and to transact winnings. Even when questions were repeatedly raised about such activities, the wallet operators did not provide a satisfactory response.

The Advertising Board sent a letter on Monday saying that the program called ‘TCN X IME Khalti IPL Fantasy’ run through Khalti encouraged betting. The board has given Khalti time to submit its response within 3 days . According to Chairman Humagai, the board had already fined two agencies for betting advertisements at the rate of Rs 10,000  earlier. He mentioned that it has been taking initiatives to stop betting for two-three years and has taken action against some of them .

According to Section 125 of the Criminal Code 2074, betting is illegal in Nepal . Those who commit such acts can be imprisoned for up to one year and fined up to Rs 10,000 . The Advertisement Regulation Act 2066 also prohibits advertising that encourages buying lottery tickets or gambling without permission .

The Advertisement Board had earlier issued a statement urging to stop online gambling and betting advertisements . The ministry has warned against using or operating such apps without authorization and that strict action will be taken if they do so . The National Bank has been working with the police, CIB and the Telecommunications Authority through a joint team for the past three years to discourage betting. ‘Wallet companies should also work within the laws of the state and the regulations of the National Bank,’ said Poudel, a spokesperson for the bank. ‘We are ready to give further instructions to minimize risks.’