Gambling in Nigeria

Gambling Regulation in Nigeria: A State-Controlled Sector Backed by Supreme Court Judgment

Gambling in Nigeria is now firmly under the regulatory purview of state governments, reflecting the federal nature of the country’s Constitution. Although the industry was historically marred by legal ambiguities and illegal operations, recent judicial interpretations — especially the landmark Supreme Court decision[1] — have clarified that the power to legislate and regulate gambling resides exclusively with the states.

This landmark judgment rendered the central government's attempt at unifying gambling regulation void and confirmed the supremacy of states in regulating gaming activities within their jurisdictions. Consequently, the National Lottery Act and any pretense of central regulation through a so-called national lottery regime is now defunct in practice and in law.

## State-Based Regulation: A New Era for Nigerian Gambling

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In alignment with this constitutional reality, state governments across Nigeria have established their own regulatory frameworks for both land-based and online gambling. Leading the charge is Lagos State — the commercial hub of the country — through the Lagos State Lotteries and Gaming Authority (LSLGA). The LSLGA operates under the Lagos State Lotteries and Gaming Authority Law, 2021, one of the most comprehensive gaming laws in Africa, governing all forms of gaming including lotteries, casinos, sports betting, slot machines, promotional gaming, and online gambling.

The success of Lagos State has encouraged other states like Oyo, Imo, and Enugu to develop their own regulatory authorities. Each state now licenses and monitors operators within their borders, creating a competitive and well-supervised gaming environment across Nigeria.

## Online Gambling: Now Well Regulated by States

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Online gambling has seen exponential growth in Nigeria, fueled by mobile technology, internet access, and a youthful population. What was once a gray area is now clearly regulated under state laws. Each operator intending to offer online betting services must obtain licenses from the gaming authority of every state in which it operates.

In Lagos State, for instance, the LSLGA provides detailed guidance and compliance requirements for online operators. These include responsible gambling mandates, anti-money laundering protocols, KYC (Know Your Customer) standards, and transparent operational practices. This legal clarity has turned Nigeria into one of Africa’s fastest-growing and best-regulated online gambling markets — second only to South Africa, but with projections to take the lead in the near future.

With over 100 million internet users and nearly 170 million mobile phone lines, online sports betting has become a popular pastime, especially among Nigeria’s tech-savvy youth.[2] Today, more than 40 legal online betting platforms — including Bet9ja, Nairabet, Betway, 1960bet, Betfair, and 9jaPredict — are licensed by various state authorities, bringing transparency and player protection to the forefront.

## Legal Framework and Player Protection

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Under state laws, gambling in Nigeria is divided into legal and illegal categories. Legal gambling activities include lotteries, licensed land-based casinos, sports betting, promotional games, and slot operations in states with robust legal frameworks. Illegal activities — such as unauthorized card games, roulette, and dice games — remain prohibited unless specifically regulated by a state law.

Gambling operators are also bound by the Money Laundering (Prohibition) Act, 2011, which imposes strict anti-money laundering standards. States like Lagos have further reinforced this with additional AML provisions in their licensing frameworks, ensuring Nigeria’s compliance with international standards.

## Baba Ijebu and the Evolution of Local Gaming

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One of Nigeria’s oldest and most recognizable gaming brands is Premier Lotto Limited, popularly known as Baba Ijebu. Founded in 2001 by Sir Kensington Adebukunola Adebutu, Baba Ijebu offers over 20 lotto games and is licensed by the appropriate state gaming authorities. Its longevity and cultural relevance reflect the gradual normalization of gambling in Nigeria, especially as societal attitudes shift among the younger generation.

## Age Restrictions and Payment Gateways

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The legal gambling age in Nigeria is 18. State regulators enforce this minimum age requirement strictly, especially for online operators, who must integrate age verification mechanisms.

Players can deposit funds with both local and international betting platforms using a wide range of payment options: bank cards, e-wallets (like Skrill and Neteller), USSD codes, and more. There are no legal restrictions on these transactions, as long as the operators are licensed by a Nigerian state.

## Conclusion: A Decentralized, Functional, and Future-Oriented Framework

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Nigeria has embraced a decentralized but effective gambling regulatory model. With the Supreme Court's affirmation of state regulatory powers and the rise of state gaming authorities like LSLGA, the sector is evolving toward greater integrity, player protection, and economic growth.

Operators, investors, and players can now navigate the Nigerian gambling ecosystem with confidence — knowing that the rules are clear, enforcement is consistent, and innovation is welcome under the watchful eye of state governments.

## References

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1. ^ Attorney General of Lagos State & Ors v. Attorney General of the Federation & Ors (SC/1/2008)
2. ^ nigeria-gaming-industry.pdf

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