The Lagos State Lotteries and Gaming Authority (LSLGA) has given mobile network operators, value-added service (VAS) providers and carrier billing platforms 30 days to confirm that every betting and gaming company using their networks in the state holds a valid Lagos licence and is up to date on gaming taxes.
The directive, contained in a public notice and reported by Nairametrics, targets operators including MTN, Airtel and Globacom, and marks a sharp escalation in the state’s drive to collect revenue from Nigeria’s fast-growing betting industry.
What happened
Under the notice, telecom firms and their partners must check the licensing and tax status of each gaming operator that uses their platforms in Lagos. They must also hand over transaction records, carrier billing data and revenue-sharing details for those operators, covering the period from 22 November 2024 to the date of the notice.
The regulator also told the companies to stop bringing on new gaming businesses that cannot show valid state licensing, and to suspend existing gaming services that are not properly authorised.
The LSLGA was clear that a licence from the Nigerian Communications Commission does not cover gambling. In its words, such a licence “does not constitute a licence or authorization” for betting activities in the state. Being a telecom, aggregator, payment channel or billing platform, it said, does not remove the gaming firm’s own duty to hold a state licence.
Why it matters
The move shifts part of the enforcement burden onto telecom companies and their partners, which sit at the centre of how many Nigerians place bets. Short codes, premium SMS services, airtime billing and mobile apps have made it easy for gaming firms to reach customers, and the state now wants those channels to act as gatekeepers.
The authority said the records it receives will be used to work out gaming taxes, statutory levies and other sums owed, including penalties and interest. That suggests Lagos is preparing to pursue unpaid revenue going back almost two years, which could result in large bills for some operators.
The notice relies on the Lagos State Lotteries and Gaming Authority Law of 2021. One section of the law bans anyone from running, advertising, managing wagers for or otherwise facilitating gaming without a valid licence. Another allows the authority to hold a company and its directors or principal officers liable where an offence happened with their consent, connivance or neglect. The notice does not set out specific fine amounts.
For telecom operators, the order adds compliance costs and legal risk. They will need to audit a large number of partners in a short time, and may face difficult choices if some gaming firms cannot quickly produce state licences. For betting companies, the message is that operating through a telecom partner offers no shield from state regulation.
What to watch
Once the 30-day window closes, the LSLGA says it will issue statutory notices and take enforcement action against firms and entities that have not complied. Watch for how the major telecom operators respond, whether they seek clarity from federal regulators, and whether other states with their own gaming laws follow Lagos in leaning on telecom channels to enforce licensing.
The outcome will also be closely followed by the wider industry, as states and federal agencies continue to define who has the authority to license and tax betting across Nigeria.
