Who can apply for a gaming License in Rivers State?
Gaming business in Nigeria is regulated by both the Federal Government of Nigeria and the Government of the State where the gaming business is located. The only exception is the Federal Capital Territory (FCT) Abuja which is under the administration of the Federal Government of Nigeria and therefore does not require two-level regulation of gaming businesses within the FCT.
A company can engage in in gaming business in Rivers State if it is registered with the Corporate Affairs Commission (“CAC”) as a limited liability company and licensed by the National Lottery Regulatory Commission (“NLRC”) and the Gaming Department of the Rivers State Board of Internal Revenue.
What categories of games are available for licensing in Rivers State?
There are Four (4) major categories of games which can be licensed in Rivers State, namely:
i. Sports Betting
ii. Pools Betting
iii. Casino (Online or Machine)
iv. Lottery
What are the requirements and procedure for gaming license in Rivers State?
As already mentioned above, the application procedure for gaming is in two levels: first licence by the NLRC and the second licence by the Board of Internal Revenue of Rivers State. Please read more about costs, requirements and timeline for obtaining gaming licence from the NLRC here.
With respect to the licence by the Board of Internal Revenue of Rivers State, the applicant company is required to present a written application to the Executive Chairman of the Rivers State Board of Internal Revenue which must be accompanied by the following documents:
i. Evidence of payment of Application Fee;
ii. Incorporation documents of the Applicant company;
iii. Proof of business address within Rivers State,
iv. Business Plan and Feasibility Study;
v. Proof of financial capability
If the application succeeds, the Chairman shall issue a letter of clearance stating that the applicant company can operate its business within Rivers State. Please note that before now, certificates were issued to Applicants, however, the Chairman of the board now issues “Letter of Clearance” which suffices as a license to operate a gaming license.
Is there a mandatory licensing requirement for business address within Rivers State?
Yes. Only applicants with business address within Rivers State are eligible for gaming licence of the Rivers State Government. Proof of business address within Rivers State is one of the requirements for granting a gaming licence.
What is the minimum share capital for setting up a Gaming company in Rivers State?
There is no required share capital to set up a gaming company in Rivers State. However, a gaming company must first register with the Corporate Affairs Commission (“CAC”) with the required share capital as stipulated by the NLRC. This is because the CAC will not accept any application for incorporation of a gaming company unless the promoters of the gaming business meet the sectorial requirements provided by the NLRC.
Please note that sports betting companies and lottery companies are required by the NLRC to be registered with a minimum of N30 Million share capital and a N100 Million share capital respectively. Whilst there is no specified share capital for casino and pools betting in Rivers State, it is advisable to incorporate companies seeking to be licensed for those business activities with N30 Million share capital.
What are the Requirements for Company Registration in Nigeria?
As already mentioned above, a company that is desirous of setting up a gaming business must register itself with CAC. Please note that the incorporation of a sports betting and lottery company cannot be completed unless with a provisional approval of the NLRC.
Registration of companies with CAC can now be completed in 24 hours after submission application subject to fulfillment of the preconditions for incorporation including the provisional approval of the NLRC. The process of company incorporation is now 100% digital.
The mandatory requirements for company registration with CAC are listed and explained as follows:
(a) Two Proposed Names of the Company: The Applicant is required to submit two (2) names of the proposed company for screening and reservation. One of the names may be approved by the CAC within 24 hours to enable the promoters to apply to the NLRC for pre-licensing approval for gaming business.
(b) Proposed Registered Address, Email and Phone Number of the Company: Every company must have its registered address in Nigeria. Also, it is important to provide the email and phone number of the company (please note that the email address and phone numbers of the shareholders or directors may be used in the meantime). The registered address, email and phone numbers are also relevant for use and record of the tax authorities.
(c) Details of Shareholders, Directors and Company Secretary of the Company: The old law that a company must have at least two (2) shareholders or two (2) directors has now been abolished by the Companies and Allied Matters Act 2020 (“CAMA 2020”). Now, a company may be registered with at least one (1) shareholder, one (1) director and a company secretary all of whom must present the following details:
i. Names;
ii. Home and contact addresses;
iii. Email Addresses;
iv. Phone Numbers;
v. Date of Birth;
vi. Occupation;
vii. A copy of government-issued means of identity (preferably data page of international passport); and
viii. Electronic signatures.
(d) Provisional Approval of the NLRC (where applicable): Where the company seeks to engage in sports betting and lottery games, it is required to first obtain the provisional approval of the NLRC before applying to the CAC for company incorporation.
What are the Applicable costs for obtaining Gaming License in Rivers State?
The Applicable costs for obtaining Gaming License in Rivers State are as tabulated below:
| S/N | Categories of Gaming License | Application Fee | License Fee | Incorporation Cost |
| 1 | Sports Betting | N100,000.00 | N10,000,000 | N155,000 |
| 2 | Pools Betting | N100,000.00 | N2,500,000 | N155,000 |
| 3 | Casino (Online or Gaming Machine) | N100,000.00 | N2,500,000 | N155,000 |
| 4 | Lottery | N100,000.00 | N2,500,000 | N505,000 |
The above costs do not include professional fees as well as the licensing costs in respect of the NLRC licence, which is available here.
What are the applicable taxes to be paid by the Applicant?
Monthly taxation on gaming business in Rivers State is not fixed but dependent on the outcome of monthly tax audit of the company’s gaming accounts by the Board of Internal Revenue of Rivers State.
From experience, the monthly tax on gaming business ranges from N150,000 to N2,000,000.
What is the estimated timeline for processing a gaming license in Rivers State?
From our experience, the process for obtaining the gaming licence can be completed within seven (7) working days after submission of all relevant documents and payment of applicable fees.
What is the validity period for gaming licence in Rivers State?
All categories of gaming licences in Rivers State have the lifespan of Twelve (12) months, which is renewable for another Twelve (12) months.
