Ending years of judicial struggle between federal and state authorities over who controls gambling in Africa’s richest and most populous country, Nigeria’s Supreme Court has finally ruled that state governments alone have ultimate regulatory power over lotteries and gaming in the West African giant.
The Supreme Court ruling negates Nigeria’s National Lottery Act and unequivocally affirms the constitutional authority of the country’s 36 states to control gambling within their boundaries.
Gambling is already effectively outlawed in Nigeria’s 12 Muslim-majority states in the north of the country, which have been subject to parallel Islamic Shari’a law since 1999.
Under strict Islamic law gambling is “haram”, or forbidden.
This leaves Nigeria’s remaining 24 states–and the federal capital territory of Abuja in the geographical centre of the nation–free to develop lotteries, retail gambling, sports betting and iGaming businesses to their liking.
Big Winner
The big winner from the Supreme Court ruling issued on November 22 is undoubtedly Nigeria’s mega city of Lagos, the commercial and cultural hub of the nation.
For years the legality of who controls the gambling industry–along with religion, the division of oil revenues, and corruption–has been a thorn of contention between Nigeria’s deeply-divided federal and state authorities.
Operators in the resource-rich nation have hitherto been faced with a veritable thicket of competing regulatory authorities, often resulting in double taxation, multiple licences and wide space for illicit exploitation.
Imbroglio
But now the seven Supreme Court judges have ended the legal imbroglio.
With its Lotteries and Gaming Authority (LSLGA) already overseeing some 65 licensed companies, Lagos State has hailed the Supreme Court ruling as “an historic victory”.
“[It] reinforces the principles of true federalism, empowering states to chart their path for effective regulation.”
And LSLGA CEO Bashir Are warned rogue operators:
“[We] urge all illegal and unlicensed lottery and gaming operators to immediately approach the LSLGA for regularisation — or face prosecution.”
