Is gaming legal in Lagos State? Yes, gaming is legal in Lagos State, but every gaming operator must obtain a gaming license from the Lagos State Lotteries and Gaming Authority (LSLGA).
To establish a gaming operation in Lagos State, the prospective operator must have obtained a license or permit from the LSLGA. The license or permit brings the prospective operator under the regulatory mandate of the Lagos State Government in line with the provisions of the Constitution of the Federal Republic of Nigeria 1999(as amended) and other statutes. The regulatory mandate of the Lagos State Government is explicitly stated in the Lagos State Lotteries and Gaming Authority Law,2021 (as amended). This law harmonized all existing gaming laws and agencies regulating gaming activities in Lagos. State.
This law emanated from the commitment of the Lagos State Government to regulate gaming activities in Lagos State and to ensure a safe and sanitized gaming industry. These laws aims to protect the gaming operators, the punters and all stakeholders in the gaming industry value chain.
What to know if you want to operate a gaming business in Lagos State
To launch a gaming business in Lagos state, the prospective operator must apply for and obtain the appropriate license from LSLGA. These licenses vary based on the type of game and are categorized as follows; Public Online Lottery, Online Sports Betting, Scratch Cards, Interactive Games, other Lotteries, Casino, Slots or Gaming machine, Remote Gaming, Pool Betting, other lotteries (promotional competition), other games and related activities in Lagos State.
Before a gaming License is issued under the provisions of the LSLGA Laws, 2021, all applicants are subjected to a due diligence procedure, including background checks, business model assessments, and financial viability evaluations to ascertain the eligibility of the applicant.
The applicant must make an application to the Authority, which must show evidence of;
- Undertaking responsible gaming training from a list of providers accredited by the Authority and;
- Undertaking an anti-money laundering training programme under the extant anti-money laundering legislation.
The Law has additional requirements for getting a licence that transcend the financial and technical expertise of the applicant. These requirements seek to protect the interests of the customers of prospective licensees and society at large. They include:
- the existence of measures and mechanisms for data protection and privacy;
- the existence of measures to protect underage, underprivileged and vulnerable people from exploitation, harmful or addictive gaming tendencies;
- the presence of consumer protection measures; and
- the presence of measures for rehabilitating persons suffering from the harmful effects of gaming
These laws are put in place to ensure that customers’ data and privacy are protected, as well as people are not easily physically or emotionally influenced or mentally hurt by gaming activities.
As an applicant for a gaming license, one must also realise that the law sets a clear difference between permits and licences; however, the LSLGA may issue permits in respect of activities that fall under games, but do not require a licence, and also non-commercial and private gaming activities. Therefore, a license is issued in respect of specified categories of activities to be carried out on a commercial scale, while a permit would be issued for private gaming activities. Licenses typically have longer terms and can be renewed. A permit would typically be short-term or an approval for a one-off gaming activity.
As a gambling/gaming operator in Lagos, failure to comply with LSLGA regulations will lead to various consequences that can be quite serious, such as
- Fines and Financial Penalties
- Suspension or Revocation of Licence
- Legal Prosecution
- Business Closure