Lagos State Lotteries and Gaming Authority (LSLGA) has given telecommunications operators, mobile network operators (MNOs) and value-added service (VAS) providers 30 days to verify the licences of gaming businesses using their platforms and submit transaction records to assess outstanding gaming taxes and levies, RaveNewsOnline reports.
The regulator issued the directive in a public notice dated October 12, requiring companies facilitating lottery, betting and gaming services through USSD, SMS, short codes, mobile applications and carrier billing to comply with state licensing requirements.
The Authority clarified that licences or approvals issued by the Nigerian Communications Commission (NCC) for telecommunications and VAS activities do not authorise companies to conduct or facilitate gaming activities in Lagos State.
It cited a November 22, 2024, Supreme Court judgment in Attorney-General of Lagos State & Ors. v. Attorney-General of the Federation & Ors., Suit No. SC/1/2008, which affirmed that lottery and games of chance fall within the residual legislative competence of states.
Under the notice, telecommunications operators, VAS aggregators and VAS providers must verify the licensing and gaming-tax compliance status of every gaming operator using their platforms.
They must also submit transaction, carrier-billing and revenue-sharing records covering the period from November 22, 2024, to the date of the notice.
The records will enable the Authority to assess outstanding taxes, statutory levies and other fiscal obligations, including applicable penalties and interest.
Affected gaming operators must regularise their licensing status and settle assessed arrears within the 30-day compliance period.
The directive also requires telecommunications and VAS companies to stop onboarding gaming operators without valid licences or authorisations issued or recognised by the Authority and suspend existing services that do not meet these requirements.
The regulator stressed that using telecommunications infrastructure, carrier-billing platforms, payment channels or other technological intermediaries does not exempt gaming businesses from state licensing requirements.
The notice cited Section 33(3) of the Lagos State Lotteries and Gaming Authority Law 2021, which prohibits specified activities relating to gaming without a valid licence or authorisation. It also referenced Section 101(5), under which directors, managers, secretaries and other principal officers may be held liable alongside their companies if an offence is committed with their consent or connivance, or is attributable to their neglect.
After the 30-day compliance period expires, the Authority said it would issue the appropriate statutory notices and pursue available enforcement measures against operators and other entities found to be unlicensed or non-compliant.
The regulator also reminded gaming operators to account for and remit all applicable licence fees, gaming taxes and statutory levies, including the Good Causes Levy, under the state’s gaming law and relevant regulations.
