Is Gambling Legal in Nigeria? Complete Regulatory Guide 2025

Key Information

Last Update 2025

Regulatory Authority State gaming boards (e.g., Lagos State Lotteries and Gaming Authority); National Lottery Regulatory Commission (for FCT and federal matters)

License Cost Varies

Regulation by Activity Type

Casinos Regulated

Online Casinos Regulated

Betting Regulated

Online Betting Regulated

Lotteries Regulated

Poker Regulated

Highlights

Gambling in Nigeria is regulated at both federal and state levels, with recent Supreme Court rulings granting states exclusive authority over lotteries and games of chance.
The National Lottery Regulatory Commission (NLRC) oversees national lotteries and online gaming, while state boards like the Lagos State Lotteries and Gaming Authority regulate within their territories.
A Remote Operator Permit (ROP) allows foreign online gaming operators to serve Nigerian players without local incorporation, provided they hold a recognized international license.
From January 2025, a 5% withholding tax applies to Nigerian residents’ gambling winnings, with a 15% rate for non-residents, alongside a 4.5% tax on all player deposits for remote operators.
Online gambling is legal and regulated, but operators must comply with both federal and state licensing, responsible gaming, anti-money laundering, and data protection requirements.
The legal gambling age is 18 for most forms, but land-based casino gambling may require players to be at least 20 years old.
Nigeria’s regulatory landscape is complex and evolving, with ongoing reforms aimed at harmonizing tax collection, enhancing consumer protection, and curbing unlicensed operations.

Legislation

Primary Legislation

The legal framework governing gambling in Nigeria is based on a combination of federal and state laws, as well as specific statutes addressing different forms of gaming. The most significant legislative instruments currently in force are:

National Lottery Act, 2005 (as amended by the National Lottery Amendment Act, 2017): This is the principal federal law regulating lottery and gaming activities across Nigeria. It establishes the legal basis for lottery operations, sets out the powers and functions of the regulatory authority, and provides the framework for lawful gaming at the federal level.
National Lottery Regulations, 2007 (as amended): These regulations provide detailed rules for the implementation of the National Lottery Act, including operational standards, compliance requirements, and administrative procedures for lottery and related gaming activities.
Criminal Code Act (Chapter 22): This Act defines illegal gambling operations and prescribes penalties for unlawful gaming activities. It distinguishes between games of skill (generally permitted) and games of chance (often prohibited), and criminalizes unlicensed gambling houses and certain non-skilled games.
Gaming Machines Act, 1977: This law prohibits the unauthorized ownership or operation of gaming machines, with specific penalties for violations.
Casino Taxation Act, 1965: This Act establishes the tax obligations for casino operations and grants authorities the power to inspect casino records.
State-Level Legislation: Various states, most notably Lagos, have enacted their own laws such as the Casino and Gaming Law of Lagos State (2004), which regulate gaming activities within their jurisdictions, including lotteries, casinos, and betting.

While the federal framework is comprehensive for lotteries and some forms of betting, states have significant autonomy to regulate and license gambling within their territories. Notably, online gambling is not explicitly addressed in federal legislation, but recent regulatory developments and state-level laws have begun to fill this gap.

Regulatory Authority

Oversight of gambling in Nigeria is exercised through a dual system of federal and state authorities:

National Lottery Regulatory Commission (NLRC): Established by the National Lottery Act, the NLRC is the primary federal body responsible for regulating and supervising lottery and gaming activities nationwide. Its mandate includes enforcement of the law, licensing, compliance monitoring, and ensuring responsible gaming practices.
State Gaming Boards and Lotteries Authorities: Each state may establish its own regulatory body to oversee gambling activities within its borders. For example, the Lagos State Lotteries and Gaming Authority regulates all forms of gaming in Lagos State, including casinos, lotteries, and betting shops.

This dual structure means that operators may be subject to both federal and state oversight, depending on the type and location of their activities. The NLRC handles federal licensing and enforcement, while state authorities regulate and license operators at the state level.

License Types

Overview of Gambling Licensing in Nigeria

Nigeria operates a dual licensing system for gambling, with regulatory responsibilities divided between federal and state authorities. The main federal regulator is the National Lottery Regulatory Commission (NLRC), while individual states—most notably Lagos—have their own gaming boards. Licensing is required for all legal gambling activities, including lotteries, sports betting, casinos, and certain online operations.

Types of Gambling Licenses Available

Lottery Licenses – Issued by the NLRC at the federal level and by state lottery boards for state-level operations. Covers national and state lotteries, instant win games, and charity sweepstakes.
Sports Betting Licenses – Available at both federal and state levels. Permits operation of retail and online sports betting platforms.
Casino Licenses – Primarily issued at the state level (e.g., Lagos State Lotteries and Gaming Authority). Covers land-based casino operations.
Remote Operator Permits (Online Gambling) – Introduced for online and remote gambling operators, particularly for online sports betting and lottery. Online casino licensing is not fully regulated domestically but is possible for operators with international licenses.

Application Process and Procedures

Applications must be submitted to the relevant authority (NLRC for federal, state lottery/gaming boards for state-level operations).
Applicants provide detailed business plans, evidence of corporate registration, proof of technical capability, and compliance with anti-money laundering and responsible gaming protocols.
For online/remote operators, active licenses from reputable international regulators (such as Malta or the UK) are often required before applying for a Nigerian permit.
Background checks on directors and key personnel are standard.
Technical systems and gaming software may require certification and approval.

Duration, Renewal, and Eligibility

Licenses are typically valid for one to five years, depending on the license type and issuing authority.
Renewal requires continued compliance, submission of updated documentation, and payment of renewal fees.
Eligibility is restricted to registered corporate entities with Nigerian presence or, for remote operators, those with recognized international licenses.
Operators must demonstrate financial stability and a clean legal record.

Licensing Costs and Financial Requirements

License Type	Initial Fee	Annual Renewal	Other Financial Requirements
Remote Operator Permit (International)	$100,000	$50,000	Active international license required; integration with national payment gateway
Sports Betting (Federal/State)	Varies by authority (often ₦10–50 million)	Varies (typically a percentage of turnover or fixed annual fee)	Proof of capital, technical compliance
Lottery License (Federal/State)	Varies by authority (often ₦50 million+)	Annual renewal fee (amount varies)	Remittance of lottery proceeds, regular reporting
Casino License (State)	Varies by state (often ₦100 million+)	Annual renewal fee (amount varies)	Background checks, technical approval

Key Requirements for Obtaining and Maintaining Licenses

Corporate registration in Nigeria (or recognized international license for remote operators).
Submission of business and operational plans, including responsible gambling measures.
Technical system certification (for online and electronic gaming).
Background checks on directors, shareholders, and key management.
Ongoing compliance with anti-money laundering, data protection, and consumer protection standards.
Regular reporting and remittance of proceeds to the relevant authority.
Integration with national payment and tax remittance systems for online operators.

Summary Table: Licensing at a Glance

Activity	Regulator	License Required	Key Notes
Lottery	NLRC / State Boards	Yes	Federal and state options; strict reporting
Sports Betting	NLRC / State Boards	Yes	Retail and online; dual compliance possible
Casino	State Boards	Yes	Land-based only; varies by state
Online/Remote Gaming	NLRC (Remote Operator Permit)	Yes	International license required; strict tech and compliance checks

Nigeria’s licensing regime is evolving, with increasing emphasis on digital compliance, international standards, and robust oversight. Operators must navigate federal and state requirements, substantial fees, and rigorous compliance obligations to obtain and maintain their licenses.

Gambling Tax

Tax Rates for Gambling Operators in Nigeria

Type of Tax	Applicable Rate	Basis of Taxation	Scope
Lottery Tax (Domestic Operators)	7%	Net Proceeds (Gross Revenue minus Prizes Paid)	Domestic lottery companies
Duty on Player Deposits (Offshore Operators)	4.5%	All Player Deposits	Offshore online gambling operators
Withholding Tax on Winnings (Residents)	5%	Player Winnings	All gaming and betting activities
Withholding Tax on Winnings (Non-Residents)	15%	Player Winnings	All gaming and betting activities
Excise Duty on Gaming Services	5%	Total Charges for Gaming Services	All gaming, gambling, betting, and lottery services

Basis for Taxation

Domestic lottery operators are taxed on their annual net proceeds, defined as gross revenue minus prizes paid.
Offshore operators pay a duty based on the total amount of player deposits processed through the national payment gateway.
Withholding tax is applied at source on player winnings from all forms of gaming, including lotteries and betting.
Excise duty is levied on the total value of gaming services provided, calculated on all transactions linked to gaming activities.

Tax Reporting and Payment Procedures

Taxes are generally remitted through the Federal Inland Revenue Service’s digital platforms, such as the Tax Pro Max system, allowing for real-time reporting and payment by operators.
Withholding tax on winnings must be deducted by operators before paying out net winnings to players. The deducted tax is then remitted directly to the tax authorities.
Offshore operators are required to process all player deposits through the Sentinel National Payment Gateway, which automatically calculates and collects the 4.5% duty.
Domestic operators must file periodic returns detailing their gross revenue, prizes paid, and net proceeds to calculate the 7% Lottery Tax.
Excise duty is self-assessed and paid by operators on all relevant gaming transactions, with compliance monitored by the relevant authorities.

Tax Incentives, Exemptions, and Special Provisions

Offshore operators that pay the 4.5% duty on player deposits are exempt from other taxes, including Value Added Tax (VAT) and corporate income tax, under the current framework.
Smaller businesses in the gaming sector may be eligible for temporary exemptions from certain tax obligations, as outlined in the Withholding Tax Regulations, to promote sector growth.
Both domestic and offshore operators may receive further exemptions or reliefs upon assessment, aligning with federal efforts to simplify and streamline the tax regime for gambling businesses.

Prohibited Individuals

Age Restrictions and Identification Requirements

The minimum legal age for gambling in Nigeria is 18 years for most forms of gambling, including online gambling and lottery participation. However, players must be at least 20 years old to access brick-and-mortar casinos.
Operators are required to verify the age of all players before allowing participation, particularly for online gambling platforms, where digital age verification systems are mandated to prevent underage gambling.
Identification checks are compulsory for in-person gambling at casinos and betting shops to ensure compliance with age restrictions.

Prohibited Types of Gambling Activities and Game Restrictions

Games of pure chance such as roulette, dice games, and non-skilled card games are generally prohibited. Only games classified as games of skill, such as sports betting and certain card games, are permitted.
Unlicensed gambling operations are strictly forbidden, with significant penalties for individuals and corporate entities conducting unauthorized gambling activities.
Esports and video gaming tournaments may fall under gambling regulation if they involve prize distribution based on chance or a combination of skill and chance, as defined by recent regulatory updates.
States may impose additional prohibitions or restrictions on specific types of gambling within their jurisdictions, leading to regional variations in permitted activities.

Advertising and Marketing Limitations

Gambling advertising must not target minors or vulnerable groups, and all promotional materials must clearly state the minimum age requirement.
Advertisements must avoid misleading claims regarding the probability of winning or the benefits of gambling.
Direct marketing to individuals who have self-excluded or requested not to receive gambling-related communications is prohibited.
Advertising content must include responsible gambling messages and information about available support services for problem gambling.
Operators are required to ensure that their advertising is not placed in media or locations primarily accessed by minors, such as children’s television channels or schools.

Responsible Gambling Requirements and Player Protection Measures

Operators must provide visible and accessible information on responsible gambling, including signs of problem gambling and resources for help.
Self-exclusion programs are required, allowing players to voluntarily ban themselves from gambling activities for a specified period.
Online platforms must implement tools for setting deposit, loss, and time limits to help players manage their gambling behavior.
Operators are required to monitor player activity for signs of problem gambling and intervene where necessary, including offering support or restricting access.
Data protection regulations require operators to safeguard players’ personal and financial information, with strict compliance standards for both domestic and international operators.

Geographic and Location Restrictions

Physical gambling venues such as casinos and betting shops are subject to zoning laws that restrict their location, often prohibiting them from operating near schools, religious institutions, or residential areas.
State governments have the authority to impose additional geographic restrictions, and the availability of certain gambling services may vary significantly between states.
Online gambling is accessible nationwide, but platforms must comply with both federal and state-level regulations, and may be restricted or blocked in certain jurisdictions based on local laws.

Timeline

Year/Date	Event
1960s–1970s	Early forms of gambling, such as pools and informal betting, are popular but largely unregulated and often discouraged by religious and social groups.
1990s	The Nigerian government legalizes certain forms of gambling, including betting and pools, through amendments to the Criminal Code Act, marking the first significant step toward regulation.
2005	The National Lottery Act is enacted, establishing the National Lottery Regulatory Commission (NLRC) to regulate and oversee lottery operations nationwide.
2009	The NLRC begins full operations, with the appointment of its first Director-General, and starts issuing licenses and enforcing lottery regulations.
2017	The National Lottery (Amendment) Act is passed, updating and expanding the regulatory framework for lotteries and related gaming activities.
November 2024	The Supreme Court of Nigeria rules the National Lottery Act of 2005 invalid outside the Federal Capital Territory, affirming that regulation of lotteries and gaming falls under state jurisdiction.
March 2025	The Central Gaming Bill passes its second reading in the House of Representatives, aiming to create a unified regulatory framework for all forms of online and remote gaming across Nigeria and to repeal the National Lottery Act of 2005.
January 2025	New tax regulations come into effect, introducing a 5% withholding tax on gambling winnings for residents and 15% for non-residents, alongside a 5% excise duty on gaming services.

Requirements

Software Certification and Technical Standards

All gaming software and platforms used by operators must undergo certification and approval by recognized testing laboratories to ensure fairness, randomness, and integrity. Certification must cover random number generators (RNGs), payout percentages, and overall system security.
Operators are required to implement robust technical controls to prevent unauthorized access, manipulation, or tampering with gaming systems.
Technical systems must support real-time monitoring and reporting to the relevant regulatory authorities, including transaction logs, player activity, and system alerts for suspicious behavior.
Online platforms must integrate with national payment gateways and comply with technical standards for secure financial transactions and tax remittance.
All gaming and betting systems must be capable of remote auditing and regular technical inspections by the regulator or its appointed agents.

Data Protection, Privacy, and Server Location Requirements

Operators must comply with the Nigeria Data Protection Regulation (NDPR), which mandates the protection of personal data, including secure collection, processing, and storage of customer information.
Personal data must be processed lawfully, transparently, and only for specified purposes related to gambling operations.
Appropriate technical and organizational measures, such as encryption, access controls, and data minimization, are required to safeguard customer data against unauthorized access or breaches.
Operators must provide mechanisms for data subjects to access, correct, or delete their personal data in accordance with the NDPR.
There are requirements for data localization or, where data is stored or processed outside Nigeria, operators must ensure equivalent levels of data protection and obtain the necessary regulatory approvals for cross-border data transfers.

Anti-Money Laundering (AML) and Know Your Customer (KYC) Procedures

Operators must implement comprehensive AML programs, including customer due diligence (CDD), enhanced due diligence (EDD) for high-risk customers, and ongoing monitoring of player transactions.
KYC procedures require verification of customer identity, age, and source of funds before allowing participation in gambling activities. Acceptable documents include government-issued identification and proof of address.
Operators are obliged to monitor and report suspicious transactions to the relevant financial intelligence unit and cooperate with law enforcement agencies as required.
Systems must be in place for real-time transaction monitoring, automated flagging of unusual patterns, and secure record-keeping of all AML and KYC activities.

Financial Reporting, Auditing Standards, and Record-Keeping

Operators are required to maintain accurate and up-to-date financial records, including detailed logs of all transactions, bets, payouts, and player account activities.
Regular submission of financial reports to the regulatory authorities is mandatory, including revenue statements, tax remittance records, and compliance certifications.
Operators must undergo periodic independent audits of their financial and operational systems to verify compliance with regulatory standards and detect any discrepancies.
All records, including player data, transaction logs, and audit trails, must be securely stored and retained for a minimum period as specified by the regulator, typically not less than five years.

Technical Implementation Requirements for Responsible Gambling Tools

Operators must integrate responsible gambling features into their platforms, such as self-exclusion tools, deposit and loss limits, and reality checks to inform players of their activity duration and expenditure.
Technical systems should allow players to set personal limits and self-exclude from gambling activities easily and effectively.
Operators are required to provide prominent access to responsible gambling information and support resources on all digital platforms.
Systems must be capable of enforcing self-exclusion and limit-setting requests immediately and maintaining records of such actions for regulatory review.

Sources

Primary Regulatory Authorities

National Lottery Regulatory Commission (NLRC) – Federal regulatory authority for lottery and gaming activities in Nigeria. Contact: Plot 2, Monrovia Street, Off Aminu Kano Crescent, Wuse II, Abuja, Nigeria. Phone: +234 (0) 9 461 8660 Email: info@nlrc-gov.ng

Legislation Resources

National Assembly of Nigeria – Acts Database – Official legislative portal for federal laws, including past and pending gaming legislation.