Nigeria's Supreme Court Shifts Betting Control to States

On November 22, 2024, Nigeria's Supreme Court issued a landmark ruling that transferred regulatory control of the sports betting industry from the federal government to the country's 36 states. This decision dismantled the authority of the National Lottery Regulatory Commission to regulate betting nationwide, determining that lotteries, betting, and gaming fall under the residual powers of the states.

The National Lottery Act was limited to the Federal Capital Territory. Consequently, operators now face a fragmented licensing landscape, as each state can set its own rules, fees, and requirements.

Lagos has quickly established itself as a leader in this new environment, with over 20 states activating their gaming authorities. This shift presents both opportunities for states to generate revenue and challenges for operators who must navigate multiple licensing requirements.

To address these challenges, a coalition of state regulators formed the Federation of State Gaming Regulators of Nigeria, introducing a reciprocity framework for operators licensed in one member state to operate across all member states.