Entanglement is the fuel of advanced quantum technology. It is for instance consumed in measurement-based quantum computing and allows loss-tolerant encoding of quantum information. In photonics, entanglement has traditionally been generated probabilistically, requiring massive multiplexing for scaling up to many photons. An alternative approach utilizes quantum emitters in nanophotonic devices for deterministic generation of single photons, which an be extended to two- and multi-photon generation on demand. The proposed polarization-entanglement sources are, however, incompatible with spatial dual-rail qubit encoding, which is preferred in photonic quantum computing realized in scalable integrated photonic circuits. Here we propose and experimentally realize an on-demand source of dual-rail photon pairs using a quantum dot in a planar nanophotonic waveguide. The source exploits the cascaded decay of a biexciton state and chiral light-matter coupling to achieve deterministic generation of spatial dual-rail Bell pairs with the amount of entanglement determined by the chirality. The operational principle can readily be extended to multi-photon entanglement generation, and such sources may be interfaced with advanced photonic-integrated circuits, e.g., for efficient preparation of entanglement resource states for photonic quantum computing.