The gaming sector in Nigeria is undergoing a rapid evolution, marked by contentious sectoral laws and a pressing need for regulatory and legal stability. A significant development in this regard was the Supreme Court nullification of the National Lottery Act 2005 in November 2024. The nullification followed a suit filed in 2008 by Lagos state and other states of the Federation, challenging the National Assembly's powers to legislate on lottery activities. See our publication in respect this ruling here.
In 2025, and in a quick legislative response to the Supreme Court decision of 2024, the House of Representatives is moving rapidly to pass the Central Gaming Bill (the “Bill”) which is currently at the second reading stage. The proposed legislation, titled "Bill for an Act to Repeal the National Lottery Act No. 7 of 2005 and the National Lottery (Amendment) Act No. 6 of 2017, and to Enact the Central Gaming Bill," seeks to create a comprehensive regulatory framework for online and remote gaming across Nigeria.
This Bill is curious for various reasons, it in fact generates more jurisdictional questions that would be seen to attempt to eliminate the bases and the promises of the judgment of the Supreme Court to tackle existing jurisdictional conflicts, provide regulatory certainty, and enhance investor confidence in Nigeria's gaming industry. The power to regulate online gaming activities in Nigeria is intended to shift from the states to federal, according to the Bill. Will it?
Commentary on the Key Provisions:
Below are some key provisions of the Bill and our observations:
- Establishment of the Central Gaming Commission (the “Commission”): The Bill proposes the establishment of a central gaming commission which is to take on the responsibility of the extant national lottery regulatory authority. The Commission will be empowered, among others, to regulate and administer the operation and business of online and remote gaming in Nigeria. The Commission will also set standards, guidelines, policies and rules for the operation of online and remote gaming in the country.
- Unified Regulation: Establishing a harmonized regulatory framework for all forms of online and remote gaming across geographic borders of Nigeria. While this is likely to provide comfort for the current online gaming operators, it is likely to reinvent the ill which the Supreme Court decision seeks to cure, over regulation and overlapping regulations.
- Certification of Online and Remote Gaming Technology: The Bill intends to regulate certification and approval of gaming technology to be deployed in Nigeria.[1] This will add extra compliance requirement for importers/suppliers of technology into Nigeria, asides the NOTAP and NCC requirements etc.
- Payment Regulation: The Bill intends to prohibit the use of certain payment method in the online gaming space, consequently cryptocurrency, gift vouchers, gift cards, and any other payment instruments that the Commission may determine would now be proscribed as acceptable means of payment in the industry. The Commission would also be responsible for approving acceptable payment methods. This is likely to impact payment service provision in this industry. For instance, whilst the Bill recognises blockchain technology for the provision of online gaming, it nonetheless prohibits the use of cryptocurrencies, which is likely to facilitate payment in such ecosystem
- Certification Regime for Technical Manufacturers, Suppliers and Vendors: The Bill gives the Commission the power to license or certify technical manufacturers, suppliers and vendors of online gaming equipment, software and technical services operating locally or from a foreign jurisdiction. This does not only extend the power of the Commission to regulate foreign gaming operators, but also foreign service and equipment provider to foreign online gaming operators. This gives significant extra territorial effects and regulatory powers to the Commission.
- Regulatory Agreement: The Bill grants the Commission power to enter into agreement with foreign governments and states regulatory authorities in Nigeria. This is likely to allow the Commission to enter into MOU on the regulation of online gaming affairs in the respective states with regulatory oversight.
- Penalty Regime: The Bill includes penalty regime for violation of the Bill, which includes payment of fine, imprisonment terms, seizure of property and take down order, etc.
- Transitional Provisions: The Bill intends to validate the existing licenses issued by the NLRC on the basis of the national license regime it hitherto operates. If the Bill is passed, the existing licenses of the National Lottery Regulatory Commission (NLRC) would be considered a licensed operator of the Commission for the purpose of online aspect of their business. However, they would still require specific state regulatory approval for the relevant state they operate in. Additionally, lottery operators with only physical operations would still be required to procure state specific licenses for their operations in the applicable states.
Conclusion
It is noteworthy, that the state governments have commenced licensing regime for gaming operators,[2] this Bill will therefore be seen as additional licensing obligation on gaming operators.
The law makers in support of the Bill argue that the Supreme Court’s nullification of the National Lottery Act made no express pronouncement on the regulation of online and remote gaming. The Supreme Court decision was grounded in the legislative powers division provided for in the 1999 constitution. The exclusive legislative list has no express mention of gaming, betting or lottery activities, online or otherwise, this attempt to legislate on online gaming/lottery which the states are already regulating[3] is likely to create a new debate and litigation. It becomes imperative for stakeholders to join the engagement at this stage to ensure that the interest of licenses and government stakeholders are judiciously considered in coming up with another national framework for game/lottery regulation, whatever name called.
Nonetheless, while we anticipate and closely monitor the passing of this bill into law, we note that the Bill will inevitably create compliance obligations on the operators and key stakeholders in the gaming sector which must be effectively managed given the above concern.
[1] Section 44(2) of the Bill
[2] For instance, Lagos State
[3] See our regulatory tracker here
--
Read the original publication at Aluko & Oyebode
