Lagos Govt enforces 5% withholding tax on betting and gaming winnings
The Lagos State Government has commenced the enforcement of a 5 per cent withholding tax on gaming and betting winnings, directing all licensed operators in the state to begin immediate deductions at the point of payout.
The directive, issued through the Lagos State Lotteries and Gaming Authority, mandates gaming companies to automatically deduct 5 per cent from players’ net winnings before disbursing funds.
Chief Executive Officer of the Authority, Are Bashir, said the enforcement forms part of broader regulatory measures aimed at strengthening compliance, accountability and revenue transparency within the rapidly expanding gaming sector.
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Under the new framework, operators are required to remit all deducted taxes directly to the Lagos State Internal Revenue Service (LIRS) in line with existing tax regulations.
The policy applies to all gaming and sports betting platforms licensed to operate within Lagos State. Players will now receive payouts net of the 5 per cent statutory deduction.
Authorities also indicated that stricter Know Your Customer (KYC) procedures, including the possible requirement of a National Identification Number (NIN), may accompany the enforcement to ensure full regulatory compliance.
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The move marks a significant fiscal step by the Lagos government as it seeks to enhance oversight and capture revenue from the growing online betting and gaming industry in Nigeria’s commercial capital.
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