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Lagos Imposes 5% Withholding Tax on Online Gaming Winnings

Players using Lagos-licensed gambling platforms will now see a 5% deduction taken from their net winnings. 

The Lagos State Lotteries and Gaming Authority confirmed the change in a public notice issued by its CEO, Bashir Are. The measure applies across all online operators licensed in the state and has already taken effect.

According to the notice, the tax is withheld automatically at the point of payout and then transferred to the Lagos State Internal Revenue Service. The regulator explained that the new levy forms part of the government’s wider plan to strengthen revenue collection and ensure compliance in the gaming sector.

“According to the State Government, the measure forms part of Lagos’ broader drive to strengthen tax compliance, transparency, and accountability in the rapidly expanding gaming sector,” the notice read.

Gambling regulation continues to cause debate in Nigeria

Nigeria’s gambling industry remains caught between state and federal powers, with uncertainty deepening after President Bola Ahmed Tinubu refused to sign the Central Gaming Bill in December.

That proposal would have shifted oversight to a single national commission, but its rejection left states in charge of regulating gambling.

At ICE Barcelona in January, Bashir Are of the Lagos State Lotteries and Gaming Authority explained that responsibility now rests with state regulators. “The Central Gaming Bill is dead,” he said. “But we also know we have to provide an easy and conducive operating environment for operators. So we adopt what is obtainable in Germany, Canada, the United States and other places that have similar constitutional federalism like Nigeria.

Are also stressed that Lagos intends to lead by example. “We make sure we are very transparent with the regulatory environment, so business is moving faster. We help you with the bank[ing]. We also protect from other government agencies and local governments, [to create] a very easy and conducive environment. And our taxes are very liberal too.”

Source: iGB

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Chidubem Ovute
Chidubem Ovute
Chidubem is a seasoned casino journalist for iGamingToday.com, bringing over six years of expertise in the online and land-based gambling industry. Known for his in-depth analysis and engaging articles, Chidubem covers a broad spectrum of topics, including , regulatory developments, reviews, slot game launches, and emerging trends in iGaming. His deep knowledge of gambling regulations, online slots, bonus structures, and player engagement strategies has made him a trusted voice among both casual players and industry professionals. Dedicated to accurate reporting and responsible gambling advocacy, Dubem’s work at iGamingToday.com continues to provide readers with valuable insights into the fast-paced world of casinos and gaming innovation

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