How Regulation Is Reshaping Betting in Nigeria

Sports betting regulation in Nigeria now sits with the states, and operators answer to a growing set of state regulators instead of one federal commission. The Supreme Court settled the matter on 22 November 2024, and no legislation from the National Assembly, Nigeria’s federal parliament, has taken effect since then. Taxation, licensing and payments rules have all shifted as a result. This guide sets out the sports betting regulations that apply in Nigeria today, what operators must do to stay compliant and how the rules affect bettors’ winnings and the sites they can use.

This is a general overview, not legal or tax advice. Rates, fees and deadlines change often, so confirm the current position with the relevant regulator or a qualified adviser before acting on it.

The Evolution of Nigeria's Sports Betting Regulatory Landscape

For almost two decades, betting regulation was split between the federal government and the states. The National Lottery Act 2005 created the National Lottery Regulatory Commission (NLRC) as a federal licensing authority, while state regulators ran their own regimes with differing levels of legislative backing. This produced a dual licensing environment in which operators faced overlapping federal and state obligations.

Ten states had their own statutory frameworks before the federal Act. They are Lagos, Akwa Ibom, Anambra, Cross River, Delta, Imo, Ogun, Ondo, Oyo and Rivers. Lagos later updated its framework through the Lagos State Lotteries and Gaming Authority Law 2021, which covers online and land-based sports betting. Lagos filed its constitutional challenge to the federal Act in 2008, and the dispute stayed unresolved for 16 years.

Nigeria's 2026 Gaming Laws: What Has Changed?

Nigeria's gaming rules in 2026 come from three layers: state laws such as the Lagos State Lotteries and Gaming Authority Law 2021, federal tax legislation and a licensing framework agreed between state regulators.

Three changes took effect on 1 January 2026. Under rules agreed by the Federation of State Gaming Regulators of Nigeria (FSGRN), operators began paying a flat 11 per cent tax on gross gaming revenue, designated for good causes and paid to the state where the gaming takes place. A standard annual licence fee of ₦100 million per category (lottery, sports betting, casino), agreed by FSGRN members, also became payable. Operators moving over from the NLRC had their 2025 fees waived when the framework was signed in May 2025. The Nigeria Tax Act 2025 came into force the same day and brought betting operators under the general company income tax rules, at rates of up to 30 per cent.

Lagos added its own measures during the year. In February 2026, it began enforcing a 5 per cent withholding tax on net winnings at payout, and in July it published notices on technical certification and enforcement.

Federal vs State Authority: Who Regulates Betting in Nigeria?

The 1999 Constitution (as amended) gives the National Assembly sole power over items on the Exclusive Legislative List and shared power over items on the Concurrent List. Everything else is a residual matter for the states. Neither lotteries nor games of chance appear on either list.

The federal government argued for years that betting fell under trade and commerce, a federal item. The Supreme Court ruled against it in 2024, as the next section explains, leaving the regulation of sports betting with the states. The federal government keeps jurisdiction in the Federal Capital Territory (FCT), where the National Assembly retains power to legislate. A shift of betting to the federal list would need an amendment to the Constitution.

The Supreme Court Ruling on the National Lottery Act

On 22 November 2024, a seven-member panel of the Supreme Court unanimously nullified the National Lottery Act 2005. The Act also covered sports betting, which the NLRC had licensed since 2015 as a Sports Lottery (Betting) category under section 57.

Justice Mohammed Idris delivered the lead judgment in suit SC/1/2008, which Lagos filed and Ekiti joined as co-plaintiff in 2020. The court held that the National Assembly lacks power to legislate on lotteries and that state Houses of Assembly hold that power exclusively. It also found that sections 17 to 21 of the Act were inconsistent with the Constitution, and separately issued a perpetual injunction against federal enforcement in the plaintiff states, Lagos and Ekiti.

With the National Lottery Act nullified everywhere except the FCT, the NLRC’s remit is now confined to that territory. The National Assembly then passed the Central Gaming Bill on 2 December 2025, which would have given the federal government power to regulate lottery and gaming across the states and the FCT. On 19 December 2025, President Bola Tinubu said he would not assent to it, saying that lottery and gaming were exclusively a matter for the states.

Key Regulatory Bodies Overseeing Sports Betting in Nigeria

These bodies set or coordinate the sports betting rules and regulations in their areas:

  • Lagos State Lotteries and Gaming Authority (LSLGA): The regulator for Nigeria's largest gaming market, with licence categories for sports betting, casino, lottery, gaming machines, pool betting and promotions.
  • FSGRN: A coordinating platform of state regulators, chaired by the LSLGA’s chief executive, with 24 member states as of September 2026.
  • FCTA Lottery Regulatory Office: The gaming regulator set up by the Federal Capital Territory Administration, which took over gaming oversight in Abuja in May 2025.
  • Other state bodies: Regulators in states with their own gaming laws, including Ogun, Oyo and Rivers.

Three Lagos High Court judgments in 2026 upheld the LSLGA's powers to require licensing, inspect operators' records and assess fees and levies.

As of October 2026, the Authority’s list of illegal gaming companies named 44 operators taking bets in Lagos without the licence required under section 33(3) of the LSLGA Law 2021. Bettors can check it alongside the register of licensed operators before signing up.

Licensing Requirements for Sports Betting Operators

An operator needs a licence from each state where it accepts stakes, or a reciprocity certificate covering several. Under the Subnational Reciprocity Licensing Framework, adopted on 7 May 2025, the Universal Reciprocity Certificate (URC) covers online sports betting, online casino, public online lottery and promotional competitions across member states. It does not extend to other categories, and it has no effect in states outside the FSGRN. Operators offering online sports betting therefore need to check which online betting regulations apply in each state where they take bets.

In Lagos, applicants must show incorporation documents, a business plan and technical platform documentation. They also need ₦100 million in minimum share capital and a ₦100 million bank guarantee or surety bond, and the platform must be certified to the GLI-33 standard.

Following a fee review in 2026, Lagos applicants pay a ₦5 million application fee, a ₦150 million licence fee on approval in principle and ₦100 million a year to renew, in line with the FSGRN’s standard annual fee. These fees can change, so confirm the current figures with the LSLGA before applying. Legacy NLRC licences carry no weight outside the FCT, so legal advisers say due diligence should confirm URC coverage or valid state licences. More than 10 states neither belong to the FSGRN nor have their own framework, which leaves gaps in coverage.

How New Regulations Affect International Betting Platforms

Lagos applies the same rules to foreign and local sites. Every gaming operator serving Lagos must hold an LSLGA licence, and the Authority's position is that accepting wagers from Lagos residents establishes full regulatory jurisdiction, wherever an operator's offices or servers sit. A public notice of 25 July 2026 directed unlicensed platforms serving Lagos to suspend activity and regularise their status.

In late 2024, before federal withholding on winnings took effect, lawyer Olafadeke Akeju of WYS Solicitors warned that taxing winnings could push bettors from licensed operators to illegal remote operators. Regulators have since moved against unlicensed offshore sites. In September 2026, the LSLGA and the FSGRN declared Stake.com unlawful in Lagos and the FSGRN’s 24 member states after at least 10 formal compliance notices, and said enforcement could extend to payment companies and others that facilitate its operations. For bettors, this means checking that an operator appears on the LSLGA register of licensed operators before depositing, and treating a platform named on the Authority's illegal-operators list as unlicensed in Lagos.

Taxation and Financial Compliance for Betting Operators

Taxes on betting fall at several levels. At state level, the 11 per cent tax on gross gaming revenue (stakes minus winnings paid out) agreed by FSGRN members applies across lottery, sports betting and casino, and each state collects it on gaming in its territory. FSGRN chair Bashir Are said the rate is below the European average of 19 per cent. Lagos sets its own charges under the LSLGA Law 2021, and the Authority collects four separate streams: licence fees, draw levies, gaming tax (2.5 per cent of sales revenue, according to a 2026 licensing guide) and a combined state royalty and good-causes contribution.

At the federal level, the Nigeria Tax Act 2025, in force since 1 January 2026, lists stakes as exempt from value-added tax (section 185), and income from lottery and gaming businesses is taxed under the general company income tax rules (section 62), at rates of up to 30 per cent depending on company size (section 56).

Before 2024, operators were largely taxed under a 2017 amendment to the National Lottery Act, which charged 7 per cent on net proceeds and exempted qualifying operators from company income tax and VAT. The Deduction of Tax at Source (Withholding) Regulations 2024, in force since 1 January 2025, also set a withholding tax on lottery and gaming winnings paid to individuals: 5 per cent for residents and 15 per cent for non-residents.

In Lagos, the tax on betting winnings is now enforced at payout. In February 2026, the LSLGA directed Lagos-licensed platforms to withhold 5 per cent of net winnings, with immediate effect, and remit it to the Lagos State Internal Revenue Service. The Authority says the deduction is in line with existing Nigerian tax laws, and the amount withheld counts as a tax credit for the player. Bettors must also provide their National Identification Number (NIN), so that their winnings can be linked to their tax records.

Player Protection, Responsible Gambling and Age Verification

The LSLGA states that persons under 18 must not participate in any betting, gambling or lottery activity. Operators carry the burden of age verification, and Lagos licensing rules require responsible gambling policies, including deposit limits and self-exclusion, alongside anti-money laundering and know-your-customer checks.

Outside Lagos, safeguards depend on each state’s own gaming law and licence conditions, so players should check that an operator holds a licence in the state where they live before depositing.

In Lagos, the LSLGA's register lists every licensed operator by category with its licence expiry date, and an operator missing from the register, or holding an expired licence, is not authorised to take bets in the state.

How Regulation Affects Betting Payments and Withdrawals

LSLGA rules now reach payment providers as well as operators. Its notice of 20 July 2026 set a six-month roadmap that begins with a mandatory census of operators, B2B software providers and payment service providers, followed by testing and certification of their systems, including payment gateways. Systems still uncertified at the end of the six months are disconnected and the operator’s licence is revoked, so its platform would no longer be able to take deposits or pay out withdrawals in Lagos.

For bettors, two rules apply when winnings are paid out on a Lagos-licensed platform. The operator deducts 5 per cent of net winnings before paying out, and players must have provided their National Identification Number (NIN) for KYC checks, so it is worth completing verification before the first withdrawal. Withdrawal methods and processing times depend on each operator’s terms, so bettors should check those before depositing.

Operators must also settle payments through processors willing to serve betting, a category that most global banks handling card payments treat as high risk and charge more for.

What Nigeria's Regulatory Changes Mean for Local Betting Companies

An operator that once worked under an NLRC licence now negotiates a separate regime in each state where it takes bets, and platform costs rise with each added jurisdiction. At an FSGRN meeting in Lagos in 2025, attended by members of the Association of Nigerian Bookmakers, operators raised concerns over high platform costs and difficult operating conditions.

The URC reduces duplication within member states, and rulings from the judiciary, from the Supreme Court to the Lagos High Court, give licensed firms more certainty that state authority will hold. Legal advisers recommend a state-by-state coverage audit before launch and a risk-tiered approach to states outside the FSGRN.