Lagos targets unlicensed betting firms and unpaid gambling taxes
Telecommunications companies in Lagos have been given 30 days to identify unlicensed gambling operators using their networks, as Nigerian authorities move to recover unpaid gaming taxes dating back to November 2024.
The Lagos State Lotteries and Gaming Authority (LSLGA) has issued a directive requiring mobile network operators, telecommunications companies and value-added service providers to verify that gambling businesses using their infrastructure hold valid state gaming licences.
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The order covers betting and gaming services delivered through SMS, USSD codes, short codes, carrier billing and other telecommunications platforms.
Under the directive, telecommunications providers must stop onboarding unlicensed gambling sites and suspend services that facilitate unauthorised gaming activities.
The regulator has also instructed companies to establish whether gambling operators using their networks have met their tax and statutory payment obligations.
A significant element of the directive is the regulator’s attempt to recover outstanding gambling taxes and levies dating back to November 22, 2024.
The LSLGA is seeking to establish the extent of gambling activity conducted through telecommunications networks and whether operators have paid the amounts owed under Lagos State law.
Telecommunications companies may be required to provide transaction records and other information to assist the regulator in identifying outstanding liabilities.
The directive also warns that company directors and senior officers could face personal legal consequences for non-compliance, citing Section 101(5) of the Lagos State Lotteries and Gaming Authority Law 2021.
The regulator has made clear that authorisation from the Nigerian Communications Commission to provide telecommunications services does not constitute permission to operate or facilitate gambling without the necessary gaming approvals.
Supreme Court ruling strengthens state gambling oversight
The enforcement action follows a landmark Nigerian Supreme Court ruling in November 2024 that clarified the division of gambling regulatory powers between federal and state authorities.
The court ruled that lottery and gaming regulation generally falls within the legislative authority of individual states, rather than the federal government, except in the Federal Capital Territory.
The decision strengthened the legal position of state gambling regulators, including the LSLGA, in overseeing betting businesses operating within their jurisdictions.
For gambling operators, the Lagos directive reinforces the need to obtain appropriate state-level authorisation, regardless of whether they hold telecommunications approvals or gambling licences issued elsewhere in Nigeria.
The measures could have significant implications for betting sites that depend on mobile networks to process transactions, communicate with customers or deliver gambling products.
Nigeria has a substantial mobile betting market, with telecommunications infrastructure providing an important route to customers who may not regularly access conventional sportsbook websites.
Operators unable to demonstrate compliance risk losing access to those distribution channels.
The LSLGA’s public notice, published on October 12, gives affected telecommunications and service providers 30 days to complete the required checks before further enforcement action.
