Regulated
In Nigeria, gambling is generally referred to as ‘lottery’. Lottery is regulated at (2) two levels: nationally and individually among the 36 states that make up the Nigerian Federation.

The National Lottery Act 2005 established both the National Lottery Regulatory Commission and the National Lottery Trust Fund. The act defines lottery to include ‘any game, scheme, arrangement, system, plan, promotional competition or device for the distribution of prizes by lot or chance, or as a result of the exercise of skill and chance or based on the outcome of sporting events or any other device which shall be operated according to a licence’. The lottery licences granted by the National Lottery Regulatory Commission (NLRC) include, but are not limited to, the following:

• Charitable lottery
• Online lotteries
• Promotional lottery
• Sports lottery

While the various states which are 36 in number plus Federal Capital Territory Abuja have their respective laws and administrative agencies for regulating lottery business in their jurisdictions. As an example of a state-level law Lagos State Lottery & Gaming Act 2021 which defines, gambling as ‘the wagering or the stake of money or anything of value on the unknown result of a future event at the risk of losing all or a portion for the sake of a return, irrespective of whether any measure of skill involved or not and encompasses all forms of gaming and betting’.

Therefore, the legal elements required for an activity to be regarded as gambling is specified by the applicable laws of the different jurisdictions.

Remote gambling is permitted throughout the country, although it is not yet codified in regulation at the national level; Some states have already passed a remote gambling regulation. The most common form of remote gambling offered in Nigeria is sports betting, which is also conducted through mobile Phones (via telecommunications networks) and the internet.

From our experience, a wager is deemed to have taken place from the location of the consumer, provided the punter or consumer was not targeted by the foreign operator.

There is no licence distinction between land-based or remote operations, so in essence, the criteria are essentially the same; however, the different states may have other criteria peculiar to them.

Market Size
Nigeria is one of the largest and most competitive markets in Africa with a population of almost 200 million people – projected to be more populous than United States of America by 2050. According to a recent report, Nigeria is home to more than 100 million internet users and about 169 million cell phone customers. Nigeria’s internet connectivity is impressive having just commenced 5G. Internet user penetration in Nigeria slightly increased between 2018 and 2022, from around 26% to 38%.

Driven by an estimated 60 million Nigerians actively wagering and over 300 licenced operators in Nigeria, the online gaming industry has grown astronomically in recent years. Lottery business has emerged as a lucrative industry, leveraging on the Nigerian football and sports culture. For sports bettors, the opportunity to turn their passion into earnings holds a strong appeal. The increased participation in the online gaming can be attributed to technological advancement, globalization, affordable access to internet and internet enabled-devices, online payment platforms facilitated by FinTechs, the youthful population in Nigeria as well as the high unemployment rate.

Localisation

• Localised payment channels: Bank transfers, mobile banking, use of bank short codes, fin-tech companies are common payment methods in Nigeria
• Prevalent marketing channels: TV adverts, social media ads, sports sponsorships, billboards are common marketing channels in Nigeria

Top Key Attractions and Challenges
Attractions

• The large population of the country (100M internet users)
• Passion for sports in the country
• Technological advancement
• Globalisation
• Affordable access to internet and internet enabled-devices
• Online payment platforms facilitated by FinTechs
• The youthful population with 70% below the age of 35 years

Challenges

• Tax tussle between the federal and state governments
• Regular compliance enforcement for AML and curbing terrorism sponsorship
• Cultural barriers