The Lagos State Lotteries and Gaming Authority (LSLGA) has imposed a five percent withholding tax on net winnings of online gamblers, effective immediately.
The LSLGA’s Chief Executive Officer, Bashir Are, announced the measure, confirming that the withholding tax will be applied to all gaming platforms licensed by Lagos, regardless of whether the player is a resident or not. The taxes will be withheld upon payment and remitted directly to the Lagos State Internal Revenue Service, according to a public notice.
The announcement states that the policy is part of a broader effort to strengthen tax compliance, transparency and accountability in Nigeria’s rapidly growing iGaming sector. Nigeria’s iGaming industry has expanded rapidly in recent years, driven by online platforms and growing participation among young, tech-savvy players. The country’s legal gambling activities include sports betting (such as Bet9ja and BetKing), lotteries, casinos, and promotional contests.
In addition, the LSLGA states that operators must be registered with the Corporate Affairs Commission (CAC) and licensed by the LSLGA.
As reported by several media outlets, Lagos is the country’s commercial hub, accounting for a significant portion of this activity and often serving as a testing ground for new regulations.
At the federal level, the National Lottery Act of 2005 and the National Lottery Regulations of 2007 remain the main frameworks.
According to media reports, Kenya has also imposed a five percent withholding tax, but it only applies to withdrawals, and a five percent excise tax on deposits. However, in South Africa, it has proposed a 20 percent withholding tax, much higher than Lagos, which serves as a tool to curb gambling behavior.
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