Political headwinds are once again fuelling turbulence for Nigeria’s gambling market; however, the market continues to surge even amidst regulatory speculation.
The latest decisions are set to see online bettors in Lagos hit with a 5% withholding tax on all winnings, a move that will threaten to intensify hesitancy from investors in the region.
Chief Executive Officer of the Lagos State Lotteries and Gaming Authority, Bashir Are, explained that the decision to levy the new tax forms part of a ‘broader drive to strengthen tax compliance, transparency, and accountability in the rapidly expanding gaming sector’.
Following regional trends?
This avenue to increased taxation is not uncommon in Africa. In December 2025, Zimbabwe confirmed a spike in tax on winnings from 10% to 25%, alongside a hike from 3% to 20% for operators. Meanwhile, Senegal also implemented a 20% tax on player winnings at the same time.
On the other hand, Zambia levies a 10% excise duty on all betting stakes, which has been met with severe criticism from operators in the country.
It was a decision that was met with much backlash from the country’s operators, as BetPawa and Betway both lodged an application to halt the tax, but were ultimately unsuccessful as the Zambia Revenue Authority (ZRA) detailed that the tax was lawful and implementable.
In response to the tax upheaval, Betway confirmed in October that it was withdrawing as the principal partner of the Zambian Premier League due to investment in the market becoming unsustainable.
Nigeria Gaming Bill hits presidential roadblock
In the backdrop of Lagos’ decision is the continued debate surrounding Nigeria’s Central Gaming Bill, which advocates claim would align regulation and tax frameworks across Nigeria’s 36 states.
However, at the end of January, President Bola Ahmed Tinubu declined to sign the bill in a move that reaffirmed the view of those who believed shifting regulation to a federal level contravened Nigeria’s constitution.
In response to the decision. Are said: “Nigeria has crossed an important constitutional threshold [and the] country has moved decisively from legislative uncertainty into a phase of constitutional clarity.
“While online platforms transcend geography, the social consequences of gaming – addiction, consumer harm, youth exposure, and community impact—remain profoundly local. States are best positioned to regulate these effects, while cooperating nationally on standards, data sharing, and enforcement.”
Supporters of the decision believe that the move will allow operators and state regulators to move forward with operational clarity and advance the framework that will support Nigeria’s surging gaming market.
In its most recent results, Super Group stated a buoyant approach to the African market but underpinned that it is continuing to assess its strategy in Nigeria as the market evolves and stabilises in terms of tax rate.
The market’s steady incline as a result of elevated mobile penetration underpins the need for considered regulation that provides an economic benefit to the government while also protecting players and fostering further market growth.
