The Lagos State Government has commenced enforcement of a 5% withholding tax (WHT) on gaming winnings across all licensed platforms operating within the state, introducing a new compliance layer in one of Africa’s largest regulated gambling markets.
The directive was announced by Are Bashir, CEO of the Lagos State Lotteries and Gaming Authority (LSLGA), through a public notice instructing operators to apply the deduction with immediate effect.
Under the framework, the 5% tax must be automatically subtracted from qualifying net winnings before funds are paid out to players and subsequently remitted to the Lagos State Internal Revenue Service (LIRS).
Bashir stated that the withheld amount will be treated as a tax credit for players, meaning it can be offset against broader personal tax liabilities.
The measure forms part of what the state government described as a broader effort to improve transparency, tax compliance and accountability within a rapidly expanding gaming sector. The policy applies to net winnings across all licensed gaming verticals in Lagos. Authorities have not disclosed a minimum level below which the deduction would not apply.
To support enforcement, players are now required to submit their National Identification Number (NIN) as part of the Know-Your-Customer (KYC) procedures. Licensed operators are responsible for implementing the deduction mechanisms and ensuring timely remittance in accordance with regulatory guidelines.
For operators already managing compliance obligations in a competitive environment, the new requirement is expected to necessitate system-level adjustments to payout processing and reporting infrastructure.
Nigeria’s gaming sector operates under a dual regulatory structure, with both federal oversight from the National Lottery Regulatory Commission (NLRC) and state-level authorities such as the Lagos State Lotteries and Gaming Authority
