Stakes are high as Nigeria eyes gambling overhaul

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Battle lines are being drawn over the progress of the Nigeria Gambling Bill, as the pursuit of Nigeria’s federal government to implement a unified gaming-law regime across all states has caused backlash.

The latest rebellion against the significant overhaul of Nigerian gambling came from the Coalition for Good Governance (CGG). 

Slating the efforts of the government, the CGG cited the bill as “a voyage of legislative rascality and lawlessness”. Significantly, this follows the group’s statement that the bill is ‘unconstitutional’. 

The debate brings into question the federal structure in Nigeria gambling and possibly indicates legal hurdles for the plans of the government when it comes to the implementation of the new framework.

At the group’s recent conference, Nelson Ekujumi, leader of the CCG group Comrade, stated that they are ‘at a loss to try and rationalise’ the strategy of the National Assembly, going on to accuse representatives of ‘attempting to illegally and unconstitutionally rewrite the law’.

Ekujumi added: “This is nothing short of legislative provocation and lawlessness, which stands condemned in all ramifications.

“If the Senate proceeds with this illegal bill, it would amount to a brazen defiance of judicial authority and a direct attack on the rule of law.”

The latest lobbying from the CGG compounds pressure on the Nigerian government, as the Federation of State Gaming Regulators of Nigeria (FSGRN) has been vehement in its opposition to the bill. 

At the heart of the bill is the harmonisation of taxation rates and legislation across Nigeria – faced with the ambitious task of aligning 36 states in the country. 

The backers of the bill have also emphasised the impact that it could have against the black market, a key focus for the country’s gambling regulator as overall engagement with gambling continues to grow in the country.

The 2005 bill is in need of an update, which can’t be denied. However, the vitriol surrounding the new framework is creating a tough outlook for the progression of the new framework.

As part of the new bill, the scope of the framework would be significantly broadened, encompassing online and remote gambling into the legal framework – verticals that have somewhat slipped through the cracks of the 2005 bill. It would also introduce technical certification for RNGs, systems and affiliates.

Furthermore, the new framework could also boost international collaboration for Nigeria, enabling the country to sign MOUs with foreign gambling regulators and information-exchange agreements, which could be seen as a crucial tool in tackling illegal cross-border operations.

Timing is everything

The importance of the debate can’t be understated as it ramps up at a time when the Nigerian gambling industry rides a wave of momentum in terms of engagement and traffic.

Boosted by youth and fintech tapping into the gambling industry, it was recently forecasted that Nigeria’s iGaming sector is set to grow by 16% and hit NGN $500m in revenue by the end of the year.

The Lagos State Lotteries and Gaming Authority emphasised that this has been significantly accelerated by the growth of mobile tech in the country. 

Major operators in the country, such as Betway, NairaBET, Bet9ja, 22Bet, and 1xBet, have all seen positive growth through fintech collaborations, utilising mobile wallets to elevate the user experience for gambling.

iGaming Expert Analysis: The need to replace the outdated bill in Nigeria is undeniable. However, fraught with disruption and backlash, the Nigerian government may well step back and rethink such a drastic change – to ensure that stakeholders are on board with the progress. The next 12 months could be crucial for one of Africa’s most significant markets as it looks to progress the bill even with such vehement opposition. 

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