What to know about
the National Sports
Betting Permit in Nigeria
How exciting was the match between Liverpool vs. Barcelona? It got us thinking about the business of sports, particularly sports betting. According to the News Agency of Nigeria, almost N2 billion is spent on sports betting daily, which translates to nearly N730 billion in a year. A 2016 PWC report projected that the sports betting industry would grow at an annual rate of 16% each year to $147 million (N45 billion) in 2019. It is on this note that we set out below what you need to know to obtain a national sports betting license in Nigeria.
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Who regulates Sports Betting at the National Level?
The National Lottery Regulatory Commission (NLRC) regulates the operations of lottery businesses by issuing licenses and permits; setting standards, guidelines and rules; and promoting transparency and integrity in the operations of lottery businesses in Nigeria.
Who can apply for the National Sports Betting Permit?
The National Lottery Regulatory Commission (NLRC) regulates the operations of lottery businesses by issuing licenses and permits; setting standards, guidelines and rules; and promoting transparency and integrity in the operations of lottery businesses in Nigeria.
Financial Requirements
- A company with a Minimum Share Capital of N30,000,000 (Thirty Million Naira): Don’t be alarmed, the shareholders are not required to make financial contributions up to the full amount.
- Application Fee: N2,000,000 (Two Million Naira).
- Permit Fee : N100,000,000 (One Hundred Million Naira). Where the company is a member of the Association of Nigerian Bookmakers, a 50% (N50,000,000) concession is granted.
- Bank Guarantee of at least N25,000,000 (Twenty Five Million Naira).
Licensing Procedure
Application Stage: A proposal is to be submitted to NLRC together with the necessary documents including:
- a completed NLRC application form;
- an application letter stating the intention of operating a sports betting company;
- a non-refundable application fee of N2,000,000;
- company incorporation documents;
- evidence of trademark registration; and
- evidence of registration with the Special Control Unit on Money Laundering.
Presentation and Review Stage: The applicant will be invited to make a presentation to the NLRC to justify the grant of the sports betting permit.
Provisional Approval: This is valid for 90 (ninety) days, subject to the fulfilment of the financial requirements and the following conditions which includes:
- where the Company has foreign ownership and directors, evidence of proper immigration documents and registration with the Nigerian Investment Promotions Commission (NIPC);
- connection of your online betting platform to NLRC monitoring and reporting platform; and
- Copies of duly executed service level agreement with third party provider
Final Permit: The NLRC will issue a final permit upon the expiration of the provisional approval period.
