On 22 November 2024, the Supreme Court of Nigeria delivered a significant judgment in Attorney-General of Lagos State & Ors v. Attorney-General of the Federation & Ors (SC/1/2008), which effectively curtailed the application of the National Lottery Act 2005 to the Federal Capital Territory alone. The apex court held that lotteries, betting, and gaming do not fall within the scope of the federal government's legislative competence under the Exclusive Legislative List. Rather, they are matters within the residual legislative powers of the states under the Nigerian Constitution.
In its decision, the Court concluded that lotteries and Games of Chance are not among the 68 items in the Exclusive Legislative List and are not incidental or supplementary to any matter mentioned in the list. Consequently, the National Lottery Regulatory Commission, established under the National Lottery Act, has no jurisdiction beyond the Federal Capital Territory, and any regulation, licensing, or enforcement activity it undertakes in other states is unconstitutional.
Going forward, any person or entity seeking to carry on lottery, betting, or gaming operations in Nigeria (outside of the FCT) must comply with the laws of the individual state in which they operate. In the case of Lagos State, for instance, this means adherence to the Lagos State Lotteries and Gaming Authority Law 2021, as well as all subsidiary regulations and guidelines issued by the Lagos State Lotteries and Gaming Authority (LSLGA).
Lagos State Licensing Requirements and Fees
The LSLGA is now the sole regulatory body empowered to license, monitor, and supervise gaming and betting operations within Lagos State. The categories of gaming activities regulated by the Authority include lotteries, sports betting, casino operations, promotional competitions, pool betting, and skill-based games involving prizes.
Operators are required to obtain the appropriate category of licence from the Authority before commencing operations in Lagos. Although documentary requirements vary slightly depending on the nature of the licence, all applicants must typically provide the following information:
- Certificate of incorporation with the Corporate Affairs Commission
- Memorandum and Articles of Association
- Details of directors, shareholders, and beneficial owners
- Valid tax clearance certificate
- AML/CFT compliance documentation and KYC protocols
- Evidence of a registered office within Lagos State
- A detailed business plan and operational proposal
- Financial projections and statement of source of funds
- Technical documentation, including software certifications
The applicable licensing and renewal fees depend on the category of licence. For example, a sports betting licence in Lagos attracts an application fee of ₦1 million, a licence fee of ₦100 million, and an annual renewal fee of ₦50 million. In addition, licensees must remit a 2.5% levy on their sales revenue. For online casinos, the licence fee is ₦50 million, with a renewal fee of ₦10 million and a monthly gaming tax of 10% on sales (less winnings). An annual gaming machine tax of ₦20,000 per machine also applies. Other discretionary fees charged by the LSLGA can be as high as N25,000,000.
The Central Gaming Bill
Despite the Supreme Court's decision, the National Assembly is currently considering a Central Gaming Bill intended to centralise the licensing and regulation of online and remote gaming activities in Nigeria. The proposed Bill seeks to establish a National Gaming Commission with the authority to issue licences, regulate technology providers, and supervise gaming operators nationwide.
However, the Bill has sparked strong resistance from the Federation of State Gaming Regulators in Nigeria (FSGRN), representing regulators from over 20 states in Nigeria, including Lagos State. In a formal response, the FSGRN criticised the Bill as “a repackaged version of the now-nullified National Lottery Act 2005.” The FSGRN has called on the National Assembly to withdraw the Bill, citing its apparent conflict with the 2024 Supreme Court judgment, which held that lotteries and gaming are state matters. According to the FSGRN, the proposed Bill would be unconstitutional, undermine the fiscal autonomy of states, and create legal uncertainty for existing operators already licensed by state authorities.
As of July 2025, the Bill has passed its third reading in the National Assembly but awaits concurrence and presidential assent. State regulators have pledged to continue resisting any federal attempt to override their jurisdiction in the gaming sector.
Conclusion
The 2024 Supreme Court decision reaffirmed that the power to regulate lotteries and gaming resides with Nigeria's state governments. This development provides much-needed legal clarity and strengthens the role of state-level regulators such as the LSLGA, which now holds exclusive jurisdiction over gaming operations within the state.
While the proposed Central Gaming Bill aims to streamline regulation nationwide, its current form risks reintroducing an overlap under a different guise. Rather than centralising control, a more collaborative approach that fosters coordination among state regulators while still ensuring regulatory clarity and consistency without encroaching on constitutionally guaranteed state powers may offer a more sustainable path forward.
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