Public notice on gaming licensing, tax compliance and facilitation of gaming services through telecommunications and vas platforms in lagos state.
To: all telecommunication operators, mobile network operators (mnos), licensed value-added service (vas) aggregators and vas providers facilitating lottery, betting and gaming services in lagos state
The Lagos State Lotteries and Gaming Authority (“the Authority”), being the statutory regulatory body responsible for the regulation and control of lottery and gaming activities in Lagos State pursuant to the Lagos State Lotteries and Gaming Authority Law 2021 (“the Law”), hereby issues this Public Notice to all telecommunication operators, Mobile Network Operators (MNOs), licensed Value-Added Service (VAS) aggregators and VAS providers facilitating lottery, betting and gaming activities in Lagos State.
The Authority hereby clarifies that a licence, authorization or approval issued by the Nigerian Communications Commission (“NCC”) for telecommunications or VAS activities does not constitute a licence or authorization to conduct or facilitate lottery, betting or gaming activities in Lagos State.
The Authority further draws attention to the judgment of the Supreme Court of Nigeria delivered on 22 November 2024 in Attorney-General of Lagos State & Ors. v. Attorney-General of the Federation & Ors., Suit No. SC/1/2008, wherein the Supreme Court affirmed that lottery and games of chance fall within the residual legislative competence of the States, subject to the constitutional position applicable to the Federal Capital Territory.
Accordingly, any lottery, betting or gaming activity offered to, accessible by, or conducted in relation to customers within Lagos State through USSD, SMS, short codes, mobile applications, carrier billing, VAS platforms or other telecommunications channels must be conducted pursuant to a valid licence or authorization issued or recognized by the Authority.
For the avoidance of doubt, the use of a telecommunication operator, Mobile Network Operator (MNO), VAS aggregator, VAS provider, carrier-billing platform, payment channel or other technological intermediary does not dispense with the requirement for the underlying lottery, betting or gaming activity to be duly licensed and regulated by the Authority.
The Authority further reminds all gaming operators and entities facilitating gaming services in Lagos State that all applicable licence fees, gaming taxes, levies, Good Causes Levy and other statutory payments due under the Law and applicable regulations must be duly accounted for and remitted to the Authority.
Recovery of tax arrears
5. Every gaming operator that has offered lottery, betting or gaming services within Lagos State through any telecommunications or VAS channel is required to account for and remit all gaming taxes, statutory levies and other fiscal obligations due under the Law for the period from 22 November 2024 to the date of this Notice (“the Arrears Period”). Outstanding liabilities for the Arrears Period shall be assessed by the Authority on the basis of verified transaction and revenue data, together with such penalties and interest as are applicable under the Law. Affected operators shall regularise their licensing status and settle all assessed arrears within the compliance period stated in paragraph 6.
Compliance requirement
6. All MNOs, VAS aggregators and VAS providers are hereby required, within thirty (30) days of the date of this Notice, to:
(a) verify with the Authority the licensing and gaming-tax compliance status of every gaming operator utilising their platforms to offer services within Lagos State;
(b) provide the Authority with transaction, carrier-billing and revenue-share records for every gaming operator or gaming service hosted on their platforms during the Arrears Period, to enable the assessment of outstanding liabilities;
(c) cease onboarding any gaming operator that cannot evidence a valid licence or authorization issued or recognized by the Authority; and
(d) suspend facilitation of any existing gaming service that is not so licensed or authorized.
Notice of offences and liability
7. Section 33(3) of the Law, provides that a person without a subsisting licence or authorization from the Authority shall not operate, conduct or deploy any equipment, manage or accept wagers, rent a property, employ any person or make s for any gaming activity in Lagos State.
8. Attention is specifically drawn to Section 101(5) of the Law, which provides that where an offence committed by a company is proved to have been committed with the consent or connivance of, or to be attributable to the neglect of, a director, manager, secretary or other principal officer of the company, that officer, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly.
9. Based on the foregoing, directors and principal officers of telecommunication operators, VAS aggregators, VAS providers and other entities facilitating gaming activities are therefore advised to exercise due diligence and to ensure that their platforms are not knowingly or negligently used to facilitate unlicensed or otherwise unlawful gaming activities in Lagos State.
Enforcement
10. Upon the expiration of the compliance period stated in paragraph 6, where the Authority identifies an unlicensed or non-compliant gaming operator, or any entity facilitating such an operator, the Authority shall issue the appropriate statutory notice and pursue all regulatory and enforcement measures available under the Law.
11. Hence, all affected operators, MNOs, VAS aggregators and VAS providers are therefore advised to take immediate steps to ensure full compliance with the Law and to cooperate with the Authority in providing information and records required for regulatory verification and assessment.
12. This Notice is issued to promote regulatory and tax compliance, protect consumers, safeguard the integrity of the gaming industry and prevent telecommunications infrastructure from being used to facilitate authorized gaming activities within Lagos State.
Verification and enquiries
Lagos State Lotteries and Gaming Authority,
Office address: Lagos Revenue House, Assbifi Road, Ikeja, Central Business District, Ikeja, Lagos.
Email Address: Info@lslga.org
Telephone: +234 (0)808 052 5752
Website: https://lslga.org
Verification Portal: verify@lslga.org
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