Lagos State Implements 5% Withholding Tax on Gaming Payouts

The Lagos State government has announced the enforcement of a 5% withholding tax on gaming payouts, which will take effect immediately. This tax applies to the net winnings of players and will be automatically deducted by licensed betting companies operating in the state.

Mr. Bashir, the Chief Executive Officer of the Lagos State Lottery and Gaming Authority (LSLGA), confirmed that the new policy aligns with existing Nigerian tax laws and regulatory directives governing the gaming sector. Licensed gaming operators are instructed to comply with this new tax framework and ensure proper documentation is maintained for transparency.

The withholding tax will serve as a tax credit for players. This policy is part of a broader effort by the Lagos State government to tighten regulations and formalize revenue collection within the gaming industry.

However, there are concerns that the tax may lower net payouts and discourage players, potentially pushing them towards unregulated platforms. The LSLGA has also warned residents against patronizing unlicensed gaming companies.