Supreme Court in Nigeria Hands Gaming Regulation to States

A historic decision of the Nigerian Supreme Court has put an end to a decade-long legal battle over the authority of regulating lottery and gambling activities in the country.

State Governments Gain Authority over Gaming, Lotteries

The decision on Friday effectively nullified the National Lottery Act 2005, a law that governed gambling nationally. The Nigerian Supreme Court’s decision marks a milestone achievement in the legal battle between state governments and the National Assembly.

The lawsuit was initially filed back in 2008 by the Lagos State Government, along with other local governments. The local governments argued that the National Lottery Act doesn’t apply to them, and many have established their own regulatory framework, including a gambling regulator that is in charge of lottery and gaming activities.

Now, thanks to the latest decision, the legal battle finally comes to an end, effectively enabling each state government to regulate its gambling activities. The court’s decision explained that the National Assembly didn’t have jurisdiction on a federal level and handed the authority over to state authorities. This otherwise means that the established National Lottery Act applies only Federal Capital Territory, which is the jurisdiction the Assembly has powers on, as confirmed by local media outlets.

Besides empowering state governments to regulate gaming and lottery activities, the court’s decision helps put an end to a dual-licensing model. This is because previously, gambling operators secured a license on the federal and state level. The model resulted in unnecessary expenses for the gambling operators.

Lagos State Government Applauds the Court’s Landmark Decision

In a statement released via X, formerly Twitter, the Lagos State Government praised the Nigerian Supreme Court’s recent decision. The state government pointed to the importance of the ruling which reaffirmed the “constitutional authority of State Governments to regulate lotteries and gaming activities within their jurisdictions.” Moreover, the state government wrote: “This judgment reinforces the principles of true federalism, empowering States to chart their path for effective regulation.”

“The Lagos State Government urges all illegal and unlicensed lottery and gaming operators to immediately approach the LSLGA for regularization or face prosecution,“

reads a statement from the Lagos State Government

In addition, the Lagos State Government confirmed that the Lagos State Lotteries and Gaming Authority (LSLGA) is now the sole regulatory body in Lagos responsible for lotteries and gaming activities. The local government reaffirmed the Authority’s intention to continue regulating gambling activities responsibly, in compliance with international best practices and transparently.

The statement, which was signed by the state’s commissioner for information and strategy, Gbenga Omotoso, highlighted that Lagos will remain “committed to creating a business-friendly environment for licensed operators.” Finally, the local government encouraged lotteries and gaming operators to file a request with the LSLGA for a license as otherwise they may be facing prosecution.