The iGaming industry of Nepal has faced a sudden setback after widespread protests and political upheaval followed a government order to restrict social media platforms. Market data shows that online gambling interest in the country fell dramatically within a week, highlighting the disruption caused by digital restrictions and nationwide unrest.
Blask is a market intelligence provider. It reported that iGaming interest in Nepal dropped by 74 percent in early September. The Blask Index fell from 26,300 on September 2, to just 6,000 on September 9. The index reflects user activity at the top of the acquisition funnel. This is a key measure of new player engagement.
The fall comes after a period of strong growth. In 2024, the Nepal Blask Index rose 72 percent, climbing from 4.24 million to 7.29 million. The number of active iGaming brands stood at 48 before the crisis. Since Blask started tracking the market, this marks the sharpest downturn.
The downturn coincided with unrest triggered by the decision of the government on September 4 to restrict 26 social media platforms. While only a handful such as TikTok and Viber remained online after registration with the Ministry of Communications and Information Technology, applications like Facebook, Instagram, YouTube, WhatsApp, LinkedIn, as well as X were inaccessible.
The restrictions prompted mass demonstrations led mainly by young people. Numerous rallies took place in Kathmandu, Pokhara, Lalitpur, as well as Biratnagar, with thousands joining. Protesters used slogans like “Shut down corruption and not social media” and “Youths against corruption.”
Soon, protests turned violent. Security forces used tear gas, rubber bullets, water cannons and live rounds in numerous cities. Though some local reports suggest higher injury counts, at least 19 people were killed and over 100 were injured. While internet blockout were reported in numerous districts, authorities imposed curfews in Kathmandu, Lalitpur and Bhaktapur.
