Lagos Mandates Telecoms to Police Gaming Licences Amidst Regulatory Scrutiny
Lagos State is imposing significant new compliance burdens on mobile network operators (MNOs) and value-added service (VAS) providers, demanding a rigorous verification of gaming and betting firms operating within the state. The Lagos State Lotteries and Gaming Authority has issued a 30-day ultimatum for companies, including MTN, Airtel, Globacom, and 9mobile, to confirm the licensing and tax compliance status of all gaming businesses utilising their platforms.
This directive, as reported by Nairametrics on October 14, 2026, requires affected entities to furnish comprehensive transaction records, carrier billing data, and revenue-sharing information pertaining to gaming operators from November 22, 2024, to the present. The authority explicitly stated that Nigerian Communications Commission (NCC) licences for telecommunications or VAS activities do not confer authorisation for conducting or facilitating lottery, betting, or gaming operations in Lagos. Furthermore, the involvement of telecom operators, VAS aggregators, or payment channels does not absolve the underlying gaming business of its obligation to secure a valid state licence.
The authority has also instructed telecom operators and VAS providers to cease onboarding any new gaming businesses that cannot produce proof of valid state licensing. Concurrently, they must suspend services offered by existing gaming entities found to be operating without proper authorisation. These stringent requirements underscore the Lagos State Lotteries and Gaming Authority Law 2021, which strictly prohibits unlicensed gaming activities.
The law, specifically Section 33(3), criminalises the operation or facilitation of gaming without a subsisting licence. Moreover, Section 101(5) establishes that directors and principal officers of companies can be held liable, alongside the corporate entity, if an offence is committed with their consent, connivance, or attributable to their neglect. Consequently, telecom companies and intermediaries are advised to exercise extreme due diligence to prevent their platforms from being knowingly or negligently used to facilitate unlawful gaming. Failure to comply within the 30-day window will result in the issuance of statutory notices and the pursuit of regulatory and enforcement actions.
This regulatory push comes in the wake of the Nigerian Tax Act 2025, which officially exempted “stakes” from Value Added Tax (VAT). This exemption, detailed in Section 185, Subsection M, clarifies that the amount wagered should not attract VAT, a move that has necessitated system updates for gaming operators. The Lagos State directive, however, focuses on the foundational requirement of licensing and tax compliance for the operators themselves, placing the onus on the infrastructure providers to ensure regulatory adherence.
