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NAVIGATING NIGERIA’S GAMING LAWS: THE START OF A NEW CHAPTER

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BY ADERONKE ALEX-ADEDIPE AND OMODELE FATODU

INTRODUCTION

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:

  1. Certificate of incorporation with the Corporate Affairs Commission
  2. Memorandum and Articles of Association
  3. Details of directors, shareholders, and beneficial owners
  4. Valid tax clearance certificate
  5. AML/CFT compliance documentation and KYC protocols
  6. Evidence of a registered office within Lagos State
  7. A detailed business plan and operational proposal
  8. Financial projections and statement of source of funds
  9. 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.

REVIEW OF THE LICENSING FRAMEWORK FOR INTERNATIONAL APPLICATION-TO-PERSON MESSAGING IN NIGERIA (“FRAMEWORK”)

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BY ADERONKE ALEX-ADEDIPE AND HILLARY OKOROTIE

Introduction

On July 8th, 2025, the Nigerian Communications Commission (NCC) published a regulatory framework for licensing international Application to Person (A2P) messaging services in Nigeria. In this newsletter, we highlight some of the salient provisions of the Framework and their impact on the telecommunication sector including the eligibility criteria, application process, and compliance obligations for licence holders.

What is A2P Messaging?

A2P messaging is an internet based messaging service typically used by businesses and organisations in transmitting messages to individuals over mobile networks. It is commonly used to deliver promotional or transactional messages such as marketing campaigns, service announcements, product advertisements, and order updates. The Framework introduces the International Application to Person Messaging Aggregator Licence (“IA2P Aggregator Licence”) that will regulate the provision of these services.

What is the Scope of the IA2P Aggregator Licence?

Key players in the telecommunications industry who currently provide international A2P messaging services will now be required to register with the NCC in order to continue their operations.

According to the NCC, the IA2P Aggregator Licence permits the licencee to provide the following services:

  • Aggregation of international A2P messages on behalf of licenced operators in Nigeria;
  • Provision of transactional messaging services;
  • Delivery of notifications and alerts;
  • Sending of A2P messages; and
  • Provision of subscriber protection mechanisms (opt-in and opt-out mechanisms).

Upon initial approval, the IA2P Aggregator Licence will be valid for a period of five (5) years and may be renewed for an additional five-year term.

The licence fee has been set by the NCC at ₦10,000,000 (Ten Million Naira).

Eligibility Criteria and Technical Requirements for the IA2P Aggregator Licence

To be eligible for the IA2P Aggregator Licence, an applicant must fulfil the following requirements:

  1. Must be a corporate entity registered in Nigeria.
  2. The entity is required to submit a contract with at least one host network operator or national carrier for the provision of international A2P messaging services.
  3. The applicant must also demonstrate financial capacity to cover both capital and operational expenditure of its operations.
  4. In addition, applicants are expected to integrate with local Mobile Network Operators (MNOs) and implement robust systems for fraud detection, security monitoring, and data protection.
  5. All international A2P messaging traffic must be routed through a centralized Short Messaging Service (SMS) firewall or any other technology mandated by the NCC. These technical requirements are aimed at ensuring the integrity of message transmissions and protecting against fraud and other security risks.

What are the Limitations of Licence Holders?

Holders of the IA2P Aggregator Licence are restricted from offering services beyond the specific scope of the licence. They are prohibited from engaging in any activity or providing any service for which they do not hold a valid licence issued by the NCC.

Specifically, licence holders are not permitted to operate transmission networks, switches, external fibre links, or any other infrastructure or services that require separate licensing under existing NCC regulations or other government regulations.

Specific conditions to be observed by Licence Holders

The Framework also outlines specific operational conditions that IA2P Aggregator Licence holders must observe. These conditions are aimed at ensuring regulatory compliance and consumer protection. Licence holders are required to operate in full compliance with the provisions of the Nigerian Communications Act and all other relevant regulations and guidelines issued by the NCC. All messages transmitted must include sender identification, and any message not including a sender identification is to be rejected.

In addition, licence holders must implement appropriate data protection measures. They are also required to provide a functional opt-in and opt-out mechanism that allows individuals to manage their message preferences. The Framework also prohibits the distribution of unsolicited or spam messages to consumers.

Conclusion

Previously, with no framework regulating international A2P messaging services, MNOs independently monetized the service and determined the tariff rates, which resulted in non-uniform termination rates. With the introduction of the Framework, the NCC aims to standardize the delivery of International A2P messaging services in Nigeria and ensure the secure transmission of SMS.

In addition, the Framework provides for the regulation of SMS termination rates, to provide a transparent market for operators involved in international A2P messaging.