Licensed operators to deduct tax at source as state tightens oversight of fast-growing betting and gaming sector….
The Lagos State Government has commenced enforcement of a five per cent withholding tax on gaming winnings from all licensed gaming platforms operating within the state, marking a significant shift in the regulatory landscape for players and operators alike.
The Chief Executive Officer of the Lagos State Lotteries and Gaming Authority, Are Bashir, announced the development in a public notice issued on Friday, confirming that the directive takes immediate effect.
According to the notice, the tax will apply to players’ net winnings and will be deducted at the point of payout. This means that before any winnings are credited or disbursed, the five per cent withholding tax will be automatically removed and remitted to the Lagos State Internal Revenue Service, the statutory tax authority responsible for collection.
Bashir directed all licensed gaming operators in Lagos to comply without delay, stressing that the new framework aligns with existing Nigerian tax laws and regulatory guidelines governing the gaming industry.
He explained that the move forms part of the state government’s broader strategy to strengthen tax compliance, transparency and accountability in what has become one of the fastest-growing sectors of the economy.
Under the new arrangement, players will also be required to provide their National Identification Number (NIN) in line with prevailing Know Your Customer (KYC) regulations. The measure, according to the Authority, is designed to enhance traceability, ensure accurate record-keeping and promote regulatory integrity within the system.
Bashir clarified that all deductions and remittances will be handled strictly by licensed operators in accordance with laid-down procedures. Players, he added, will receive their winnings net of the statutory deduction, with proper documentation maintained to guarantee transparency.
Importantly, the withholding tax deducted from winnings will serve as a tax credit for players, meaning it can be applied against their overall tax liabilities where applicable.
“All licensed gaming operators in Lagos State have now been formally directed to commence the deductions with immediate effect,” the notice stated.
The latest directive signals Lagos’ determination to deepen oversight of its expanding gaming ecosystem while ensuring that both operators and participants meet their tax obligations under state law.
