Lagos and UK Collaborate to Tighten Gaming Regulations in Nigeria

28.10.2024

In an unprecedented partnership, the Lagos State government has signed a memorandum of understanding (MoU) with the United Kingdom, aiming to create a stronger regulatory framework for Nigeria’s gaming and lottery sectors.

Growing Internet Access Fuels Online Gambling in Nigeria

Over the past two decades, Nigeria’s internet landscape has transformed dramatically. From limited access in the early 2000s, the nation has grown to over 100 million internet users by 2023, positioning it as one of Africa’s largest online markets.

This surge in internet connectivity has been instrumental in expanding online gambling, enabling operators to reach a wider audience. However, it has also brought challenges, including the rise of cross-border illegal gambling.

Addressing Cross-Border Challenges in Gambling Regulation

The expansion of internet-based gambling in Nigeria has exposed local consumers to risks from international operators who bypass regulations to tap into the Nigerian market. These activities not only lead to revenue loss for local authorities but also increase risks for Nigerian players.

The newly signed MoU signifies a collaborative approach between Lagos and the UK to counter these challenges, focusing on cross-jurisdictional cooperation to curb illegal gambling activities.

At the forefront of these regulatory efforts is the Lagos State Lotteries and Gaming Authority (LSLGA), Nigeria’s leading gaming regulatory body. Led by CEO Bashir Are, the LSLGA is committed to implementing global best practices within the Lagos gaming sector.

Addressing the conference in Rome, Are emphasized the critical nature of this MoU, describing it as a “vital step toward sanitizing Nigeria’s gambling market.”

Are stated, “Illegal online gambling is a global issue, with estimates suggesting that this unregulated market generates between $40 billion and $50 billion annually. These figures are approximate due to the difficulty in tracking and reporting activities in unregulated markets. In certain regions, the illegal gambling segment can account for up to 20-30% of the total online gambling market, making enforcement all the more critical.”

A Comprehensive Partnership to Strengthen Enforcement

Under the MoU, Lagos and the UK will share resources and expertise to tighten the gaming regulatory framework and combat unauthorized lottery operations. This partnership will allow Lagos to leverage the UK’s advanced regulatory systems, enabling the LSLGA to better oversee the industry and close existing regulatory gaps. Additionally, the agreement mandates that operators legally licensed in the UK cannot engage in illegal activities within Lagos, ensuring greater accountability.

The MoU is a strategic step toward Lagos’ goal of becoming a major gaming hub in Africa, with ambitions to attract investment and promote a fair and responsible gaming environment. By aligning with the UK’s stringent regulatory standards, Lagos is positioning itself as a model for best practices in Africa’s gaming industry. The agreement is expected to contribute to economic growth by drawing in investments and potentially boosting tourism.

The Vision for a United African Regulatory Front

The LSLGA is also advancing plans to establish the Gaming Regulators Africa Forum (GRAF), which would unite African regulatory bodies in addressing illegal gambling activities. This collaborative effort aims to foster a secure and prosperous gaming industry across the continent, with Lagos once again taking a leadership role in ensuring regulatory cohesion and integrity.

CEO Are acknowledged the indispensable support of Governor Babajide Sanwo-Olu and the Lagos State House of Assembly in achieving this regulatory milestone. “This success would not have been possible without the vision and support of our Governor and the Lagos State House of Assembly. Their leadership has been instrumental in ensuring that Lagos remains at the forefront of gaming innovation and regulatory excellence in Africa,” he noted.