BETTING LAWS & OPERATIONS IN NIGERIA – RECENT DEVELOPMENT

Recent developments in Nigeria's betting laws have been shaped significantly by a recent Supreme Court judgment, which has implications for the regulatory framework governing gambling activities in the country. This article explores the context, implications, and future of betting laws in Nigeria, particularly following this landmark ruling.

Background of Betting Laws in Nigeria

 Betting in Nigeria has evolved over the decades, with its roots tracing back to the British colonial era when pool betting was introduced. The regulatory landscape began to take shape with the establishment of the National Lottery Regulatory Commission (NLRC) under the National Lottery Act of 2005, which aimed to oversee and regulate betting activities across the nation. This act provided a framework for licensing operators and ensuring compliance with standards designed to protect consumers and promote fair practices. There are other various laws from different states that established gaming regulatory authorities. For instance, the Lagos State Lottery and Gaming Authority Law, 2021 established the Lagos State Lotteries and Gaming Authority as the state's gaming regulator.

In recent years, the gambling industry in Nigeria has experienced significant growth, with a notable increase in household participation and revenue generation. Various forms of gambling, including sports betting, lotteries, and casinos, have become prevalent. However, this growth has also raised concerns regarding consumer protection and regulatory oversight.

Recent Supreme Court Judgment 

On December 2, 2024, the Supreme Court of Nigeria delivered a judgment that nullified certain provisions of the National Lottery Act 2005. This ruling is pivotal as it challenges the existing regulatory framework that has governed betting and gaming operations in Nigeria for nearly two decades. The court's decision is based on jurisdictional issues concerning how state and federal laws interact within the context of gambling regulations.

Implications of the Ruling

1. Regulatory Uncertainty: The nullification of key provisions creates a vacuum in regulatory oversight, leaving many operators uncertain about their legal standing, especially in states where gaming activities are not yet regulated by the state governments.

2. Consumer Protection Risks: With diminished regulatory oversight, there is an increased risk of consumer exploitation through unfair practices and inadequate protections. The absence of stringent regulations may expose bettors to fraudulent schemes and unethical operators.

3. State vs. Federal Jurisdiction: The ruling emphasizes the need for a clearer delineation between state and federal jurisdictions regarding gambling laws. States may now have more autonomy to enact their own laws, potentially leading to a fragmented legal landscape across Nigeria.

Proposed Tax Reforms 

In addition to judicial developments, the Nigerian government has proposed new tax measures aimed at increasing revenue from the gaming sector. A new bill introduced in October 2024 seeks to impose a 5% excise duty on telecommunications and gaming services. This proposal aligns with broader efforts to reform Nigeria’s tax system amidst fiscal pressures resulting from declining oil revenues. However, the implementation of this law, if eventually enacted, could prove difficult as gaming and betting activities are now within the jurisdiction of the state governments.

The proposed excise duty has sparked concerns among industry stakeholders who argue that such taxation could stifle growth and increase costs for consumers. Critics point out that excessive taxation might drive bettors towards unregulated platforms that do not comply with consumer protection standards.

Future Directions for Betting Laws in Nigeria

Looking ahead, several key areas require attention:

• Online Gaming Jurisdiction: The Supreme Court judgement did not contain any specific pronouncement on the delineation of online gaming since neither party to the suit sought any respect with respect to it. However, since the power to regulate gaming activities also includes the power to regulate online aspects of it, the states might need to make specific laws addressing online cross-border transactions. 
• Technological Adaptation: As technological advancements continue to influence how betting occurs—particularly through mobile apps—regulations must evolve to address new challenges such as cybersecurity threats and data protection.
• Stakeholder Engagement: Engaging stakeholders—including operators, consumers, and regulators—in discussions about future regulations will be crucial for creating an environment that balances industry growth with consumer safety.

Conclusion

The recent Supreme Court judgment represents a significant turning point for betting laws in Nigeria, highlighting existing challenges within the regulatory framework while opening avenues for potential reform. As stakeholders navigate this evolving landscape, it will be imperative to prioritize consumer protection while fostering an environment conducive to responsible gambling practices.

By Corporate & Commercial Law Team at Resolution Law Firm

Email: info@resolutionlawng.com

Tel/WhatsApp: +2348099223322