Nigeria Implements Unified Gaming Tax Structure
Nigeria’s gaming sector faces comprehensive regulatory changes effective January 2026, with the Federation of State Gaming Regulators introducing an 11 percent flat tax rate and $67 000 annual licensing fees following a Supreme Court ruling that transferred gaming authority to state governments.
Supreme Court Ruling Triggers Regulatory Overhaul
The Federation of State Gaming Regulators of Nigeria announced sweeping changes during a Lagos meeting with operators from the Association of Nigerian Bookmakers, casino operators, and lottery license holders. The reforms follow a November 2024 Supreme Court decision establishing that lottery and gaming regulation falls exclusively under state government jurisdiction, except within the Federal Capital Territory. All gaming categories including lottery, sports betting, and casino operations will face identical tax treatment under the new framework.
The unified tax structure replaces previous separate retail and online operational categories, treating both segments equally for licensing and taxation purposes. States will receive most payments and taxes directly, while the FSGRN secretariat collects Universal Reciprocity Licence fees. Operators must implement geo-fencing, geo-tracking, or location data collection during customer onboarding to ensure proper payment mapping and monthly remittance to appropriate state authorities.
Industry Concerns Meet Regulatory Commitment
Bashir Are, Chief Executive Officer of Lagos State Lotteries and Gaming Authority and FSGRN chair, addressed operator concerns about high platform costs and difficult operating conditions during the Lagos meeting. He noted that the 11 percent rate remains below the 19 percent European average, though acknowledged industry feedback about business operation costs. FSGRN leadership agreed to consider tax adjustments and committed to responding through its secretariat within seven days.
The reforms build upon May 2025’s Subnational Reciprocity Licensing Framework, signed by member states, to create unified licensing across participating jurisdictions. Currently, 22 states participate in FSGRN, with leadership pushing for additional state membership. Operators must settle outstanding tax payments from November 2024 onward, with arrears charged at former National Lottery Regulatory Commission rates until the new system begins. The organization promised to issue payment plans for tax backlogs by September 12, 2025, addressing implementation concerns across the industry.
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