for early access to the latest igaming videos!
and get the latest igaming news first!
Nigeria’s online gambling industry has seen an estimated ₦5.6 trillion ($3.63 billion) this year, fueling growing alarm over a fast-cash obsession gripping millions of citizens, particularly young people caught between economic desperation and the lure of instant wealth.
The rapid expansion of digital betting platforms, driven by sports wagering apps, virtual gaming sites, and 24-hour online casinos, has fundamentally reshaped the West African nation’s entertainment and financial landscape while exposing deep social vulnerabilities that counselors, parents, and policymakers warn could have lasting consequences for an entire generation.
Consequently, there has been an increasing push for a modified national gambling plan, with regulatory bodies questioning the Court’s earlier decision.
Supreme Court ruling dismantles federal framework
The regulatory upheaval began on 22 November 2024, when Nigeria’s Supreme Court delivered a landmark judgment that nullified the National Lottery Act and stripped the National Lottery Regulatory Commission of nationwide authority, confining its powers to the Federal Capital Territory, Abuja.
The seven-member panel ruled unanimously that gaming regulation falls under state rather than federal jurisdiction, ending a legal dispute that began in 2008 when Lagos State and 22 other states challenged the National Assembly’s constitutional authority to legislate on lotteries and games of chance.
“Lotteries, betting, gaming, and other games of chance are residual matters falling within the exclusive legislative competence of the states, except in the Federal Capital Territory,” the Supreme Court declared, as quoted by Lagos Attorney-General Lawal Pedro.
Operators must now obtain licenses from individual states, a shift that has fragmented oversight and created operational complexities for gambling companies that previously functioned under a single federal framework. The ruling has also triggered intense legal battles, with Lagos State filing contempt proceedings against the National Assembly for attempting to advance a Central Gaming Bill that mirrors provisions of the nullified law.
National Assembly pushes federal bill despite court ruling
Despite the Supreme Court’s definitive ruling, the National Assembly has advanced a controversial Central Gaming Bill intended to reclaim federal oversight of online and remote gaming activities. The legislation, which passed its third reading in the House of Representatives and awaits Senate concurrence, seeks to establish a National Gaming Commission with nationwide regulatory authority.
However, that status has not insulated the bill from fierce resistance at the state level.
The Federation of State Gaming Regulators of Nigeria, representing regulators from more than 20 states, has branded the proposed law as “a repackaged version of the now-nullified National Lottery Act 2005” and called on the National Assembly to withdraw it immediately. Lagos State has taken the confrontation directly to the Supreme Court, seeking leave to initiate contempt proceedings against the National Assembly for what it describes as defiance of judicial authority.
The dispute has already produced conflicting positions across Nigeria’s federal structure. Lagos Attorney-General Lawal Pedro has been blunt about the constitutional problem: firms and lawmakers “look for regulatory relief by providing a close-enough function to something that’s highly regulated, and then they can operate under less regulation,” he said, paraphrasing the core tension. The challenge for state regulators is deciding when federal arguments become no longer credible.
Obinna Akpuchukwu, gaming law expert and senior partner at Allen & Marylebone, framed the issue in functional, not ideological, terms. “The Central Gaming Bill, if passed into law will be unconstitutional,” he said. “The argument of the proponents of the bill to the effect that the bill seeks to regulate online/remote gaming activities in Nigeria and that the repealed National Lottery Act did not provide for the regulation of online/remote gaming activities, is with respect, unfounded.”
From that angle, whether a betting transaction happens in a physical shop or through a mobile app makes no difference to the constitutional question – gaming remains a state matter regardless of the technology used to deliver it.
₦5.6 trillion market possibly built on economic desperation
Industry data suggests that nearly 60 million Nigerians place bets daily.
With this new proposal, operators serving millions of users across 36 states now face the prospect of obtaining separate licenses from each jurisdiction, under entirely different regulatory frameworks – or no framework at all in states that have not yet established gaming authorities.
This may drive a new wave of jurisdictional and social change among Nigerian youth amid increasing dependence on betting apps.
Operators to navigate a fragmented regulatory landscape
On the other hand, some industry leaders argue that major gambling platforms – including Bet9ja, SportyBet, 1xBet, Betway, and NairaBet – have built substantial operations that employ thousands directly and support Nigeria’s economy, tax revenue, and investment capital.
However, even industry representatives acknowledge the urgent need for regulatory clarity. The current fragmented landscape, with 36 states potentially developing separate licensing frameworks, poses operational challenges that could drive smaller operators out while creating compliance gaps that would instead undermine consumer protection.
Who Gets to Regulate a Borderless Industry?
Meanwhile, the market continues expanding. Industry projections suggest revenues could exceed ₦6 trillion in 2025 as smartphone penetration increases and mobile payment systems become more sophisticated.
Whether that growth occurs under coordinated state oversight, renewed federal authority, or continued regulatory fragmentation will shape not just the gambling industry’s trajectory but the economic prospects and mental health outcomes for millions of young Nigerians who see betting as one of the few paths to financial stability.
The National Assembly’s Central Gaming Bill may force that choice sooner than later. If it passes despite state opposition, Nigeria’s Supreme Court will likely face the same question again.
Source: The Guardian
