It has been nearly three months since the Lagos State Lotteries and Gaming Authority (LSLGA) enforced a 5% withholding tax on every gambling payout, inflicting turbulence for regulated operators in the Nigerian sector.
Irked punters have cried foul, but the new rule holds firm. Under the new legislation, every betting operator is required to automatically remit to the state’s statutory tax authority, the Lagos State Internal Revenue Service (LIRS), a percentage of every winning it incurs.
While the regulator stated the new policy formed part of its broader fiscal reforms aimed at strengthening oversight, transparency, and accountability in the rapidly expanding gaming sector of the country, a section of bettors felt they were point-blankly exploited.
Yet, gambling activity in the country continues to surge, with the market estimated to be worth around $3.6 billion and Lagos state accounting for a very significant portion of that figure.
Is there any chance of a taxation backtrack?
There is very little to suggest the LSLGA will consider turning around on the already in-play taxation system, as it is still deemed considerably low compared to most markets on the continent.
Though there have been suggestions that punitive taxation could swing the pendulum in favour of unlicensed operators. However, regulated gambling records have continued to flourish.
Africa’s flagship firm, Super Group, who are the parent company of Betway, recently released its financial results for the first quarter of 2026, raking in all-time-high numbers as regards revenue, active customers, deposits, and wagers in the country.
Thus, channelisation rates are still substantial, signifying that the move had not driven punters to offshore channels.
Where have the tax reforms left operators?
Nigeria’s recent gambling reforms have thrown up something of an upheaval, and even operators are not left out.
After the country’s president, Bola Ahmed Tinubu, staunchly rejected the idea of a Central Gaming Bill last year, a bill which sought to hand licensing powers to a central unit, Bashir Are, who heads the LSLGA, said during the ICE Conference that the LSLGA is committed to collaborating with other states to ensure a conducive environment for operators.
“We are giving operators a reciprocity arrangement. So, when you have a licence in Lagos, you can use it in another state”, He stated.
“There’s a treaty now within the states, so you have one singular licence. When you apply for the licence, we share the licence fee among all the states, and by doing so, you can operate in those states.”
Neal Menashe, the Super Group CEO, had also reiterated their brand’s unwavering faith in the Nigerian market, stressing that the shifts in taxation will do little to sway their focus.
Ben Cove’s Logifuture CMO, the supplier brand that powers another of the super operators in the country, Bet9ja, also underpinned that Nigeria remains one of the most prosperous markets on the continent, thanks to its young demographics, mobile penetration, and broad payment infrastructures.
With the idea of a central gaming bill now dead in the water and the LSLGA, one of the biggest regulators in the country not looking to backtrack on their new taxation policy, Nigeria’s iGaming regulations seem to have stabilised greatly heading into a period of usually increased betting activity.
