Lagos State Introduces 5% Withholding Tax on Gaming Winnings

The Lagos State government has commenced the implementation of a 5% withholding tax on gaming winnings, which will take immediate effect. This tax applies to net winnings from licensed gaming platforms operating within the state.

Bashir, the Chief Executive Officer of the Lagos State Lottery Game Authority, announced that the tax will be automatically deducted from payments made to players and remitted to the Lagos State Internal Revenue Service. This measure aligns with existing Nigerian tax laws and regulatory directives governing the gaming industry.

The new tax framework is part of a broader initiative to strengthen tax compliance and transparency in the rapidly expanding gaming sector. Players will be required to provide their National Identification Number (NIN) in accordance with Know Your Customer (KYC) regulations.

The notice clarifies that the deduction and remittance process will be strictly handled by licensed gaming operators, ensuring proper record maintenance for transparency. The Lagos State government reiterated that this policy aims to ensure proper regulation of the gaming industry and compliance with existing tax obligations.