The Lagos State government has ordered licensed betting companies to begin automatic deductions from customers’ winnings, announcing the enforcement of a five percent withholding tax on gaming payouts across the state.
In a public notice issued to licensed gaming platforms, authorities confirmed the immediate commencement of the tax regime targeting winnings generated through regulated betting operators.
The directive was signed by Mr. Are Bashir, the Chief Executive Officer of the Lagos State Lotteries and Gaming Authority.
The notice stated that the state “has commenced the implementation of a 5% Withholding Tax (WHT) deduction on gaming winnings, in line with applicable Nigerian tax laws and regulatory directives governing the gaming industry.”
According to the directive, the deduction will apply directly to players’ earnings before they receive payment.
The government explained that the tax “applies to net winnings from licensed gaming platforms operating within Lagos State and is deducted at the point of payout,” adding that “all licensed gaming operators in Lagos have been directed to comply immediately with the framework.”
Under the arrangement, betting companies are required to automatically remove a portion of winnings and remit it to the tax authority.
The notice stated that “5% of qualifying gaming winnings will be automatically deducted before payment is made to players and remitted to the Lagos State Internal Revenue Service (LIRS) as the statutory tax authority.”
Officials said the policy forms part of wider fiscal reforms aimed at tightening oversight within the rapidly expanding gaming industry.
According to the government, the measure is part of Lagos’ “broader drive to strengthen tax compliance, transparency, and accountability in the rapidly expanding gaming sector.”
The directive also introduces stricter identity verification requirements for players, mandating compliance with national identification rules.
Authorities noted that “players are required to provide their National Identification Number (NIN) in compliance with KYC (know your customer) rules,” while assuring that licensed operators would manage deductions and remittances in accordance with regulatory standards.
The notice further clarified that bettors would no longer receive full payout values, stating that “players will receive their winnings net of the statutory deduction, with proper records maintained for transparency,” adding that “the WHT deducted also serves as a tax credit to the player.”
The government concluded by stressing that “all licensed gaming operators in Lagos State have now been formally directed to commence the deductions with immediate effect.”
Leave a Reply