The Lagos State Lotteries and Gaming Authority has given telecom operators, including MTN, Airtel, Globacom and 9mobile, 30 days to verify the licences and tax compliance status of betting and gaming companies using their platforms.
The directive also applies to licensed value-added service (VAS) providers that help gaming businesses offer their services in Lagos State.
The authority ordered the affected companies to submit transaction records, carrier billing data and revenue-sharing information relating to gaming operators from November 22, 2024, to the date of its public notice.
It also directed telecom operators and service providers to stop accepting new gaming businesses that do not have valid state licences. Existing gaming services that lack proper authorisation must also be suspended.
Telecom operators face new requirements
The authority said telecom operators and other service providers must confirm that every gaming business using their platforms has the required licence and complies with gaming tax regulations in Lagos State.
It explained that the records would help determine the gaming taxes, statutory levies and other payments owed by the businesses, including applicable penalties and interest.
The authority stressed that a licence issued by the Nigerian Communications Commission (NCC) for telecommunications or value-added services does not permit a company to operate betting or gaming activities in Lagos State.
It added that using a telecom operator, payment channel or carrier billing platform does not exempt a betting company from obtaining a valid licence from the state regulator.
Lagos warns against supporting illegal betting businesses
The authority said the directive is backed by the Lagos State Lotteries and Gaming Authority Law 2021, which prohibits gaming activities without the required approval.
Section 33(3) of the law prohibits unlicensed individuals or businesses from operating gaming activities, accepting bets, managing gaming operations or advertising gaming services in the state.
The authority also referred to Section 101(5), which states that company directors, managers and other principal officers may be held personally liable alongside their companies if an offence is committed with their consent, involvement or negligence.
It therefore urged telecom operators and other service providers to carry out proper checks to ensure their platforms are not used to support illegal betting activities.
The authority warned that it would issue statutory notices and take regulatory or enforcement action against companies that fail to comply after the 30-day deadline.
What you should know
Earlier this year, the Nigerian Tax Act 2025 exempted betting stakes from Value Added Tax (VAT).
Section 185, Subsection M of the Act lists money, stakes and securities, including interests in money or securities, among items exempt from VAT.
The exemption clarifies that the money a player wagers on a game should not attract VAT, prompting gaming operators to adjust their systems accordingly.