Supreme Court grants Nigerian states control over gaming regulation

In a landmark decision, the Nigerian Supreme Court has ruled that state governments alone have the authority to regulate lottery and gaming activities across the country.

The ruling nullifies the National Lottery Act and reaffirms the constitutional authority of states to oversee these industries within their jurisdictions.
The court’s judgment is final.

The case, initiated in 2008, saw Lagos State and other states challenge the federal government’s powers to regulate lotteries and games of chance nationwide.

A seven-member panel of the Supreme Court voided the legislation, declaring that the National Assembly lacked the constitutional power to enact laws governing lottery and gaming.

A longstanding regulatory dispute

For years, Nigeria’s gaming industry has faced a jurisdictional conflict between federal and state authorities.

While the National Lottery Regulatory Commission (NLRC) issued licences at the federal level, more than 20 of Nigeria’s 36 states, including Lagos, established their own gaming regulators. The overlapping authority confused operators and forced them to pay multiple taxes and obtain dual licences.

Lagos State, as the country’s most economically significant state, has played a central role in the regulatory struggle. The Lagos State Lotteries and Gaming Authority (LSLGA) oversees more than 65 licensed companies and has long argued for state-level gaming regulation.

Previously, LSLGA CEO Bashir Are raised concerns to NEXT.io about companies exploiting regulatory ambiguities and urged legislators to resolve the uncertainty.

“Historic victory”

The Lagos State Government praised the Supreme Court ruling as a “historic victory for the rule of law, federalism, and the constitutional rights of states.”

“This judgement reinforces the principles of true federalism, empowering states to chart their path for effective regulation,” – the government said in a statement.

Lagos has reiterated its commitment to creating a business-friendly environment for legitimate gaming operators.

Meanwhile, authorities have warned unlicensed businesses to comply with state regulations or face prosecution.

“The Lagos State Government urges all illegal and unlicensed lottery and gaming operators to immediately approach the LSLGA for regularisation or face prosecution,” – the state government said.

Additionally, the state pledged to ensure the gaming industry contributes to Lagos’ economic development and benefits its residents.

On LinkedIn, CEO Are reinforced the importance of respecting the autonomy granted to federating states, writing:

“Nigeria operates a constitutional democracy with a presidential system of governance. Federating states have degrees of autonomy, and all of us must respect that, regardless of commercial interests.”

Northern states crack down on gambling

While the ruling grants all states autonomy to regulate gaming, its reception has been varied across the country. In northern states governed by Islamic law, the decision has prompted stricter enforcement of anti-gambling laws.

In Kano, where Islamic sharia law operates alongside federal law, the state’s morality police, Hisbah, announced they would intensify their crackdown on betting shops. Recently, Hisbah operatives raided and closed dozens of betting shops, stating they promoted gambling, which sharia law prohibits.

Kano is one of 12 predominantly Muslim states in Nigeria that implement Islamic law in addition to federal statutes.

Source: next.io

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Szarlot

I am a fan of casino games especially roulette and blackjack. After that I analyze current events in the gambling industry.

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Szarlot

I am a fan of casino games especially roulette and blackjack. After that I analyze current events in the gambling industry.