INTRODUCTION
Public online lottery is any lottery based on random number selections within a given range for a prize (cash or kind) that are open to members of the public and are not restricted to membership of any society, religious group, association or social group.
In order to conduct public online lottery or betting in Lagos State, a prospective operator must obtain a licence from the Lagos State Lotteries and Gaming Authority (“LSLGA”).
This authority is derived from the 2025 Supreme Court’s decision in Attorney General of Lagos State v. Attorney-General of the Federation & Ors. in which the apex court declared that lottery and gaming regulation is within the constitutional powers of sub-national states, not the Federal Government of Nigeria.
Please note that the Public Online Lottery in Lagos State is restricted to online platforms such as the Internet, POS terminals, and mobile technology. The use of online platforms provides adequate information and data on lottery operators and their agents, which in turn ensures proper monitoring and management of the Gaming industry within Lagos State.
The applicable statutory fees are as follows:
- Application Fee: ₦1,000,000.00 (One Million Naira)
- License Fee: ₦200,000,000.00 (Two Hundred Million Naira)
In line with the licensing framework, applicants who satisfy the initial eligibility and compliance requirements shall be granted an Approval in Principle (AIP). The AIP authorizes the operator to commence operations for a period of ninety (90) days.
This provisional period:
- Serves as an operational window for applicants to conclude any outstanding regulatory obligations;
- Functions as a tax-free period during which no statutory gaming taxes are applicable.
Please note that the final license will only be issued upon full settlement of all applicable fees.
Furthermore, licensed operators are subject to a monthly Gaming Tax (Good Causes Levy – GCL), charged at 15% of Gross Gaming Revenue (GGR).
WHAT ARE THE KEY REQUIREMENTS FOR A PUBLIC ONLINE LOTTERY LICENCE IN LAGOS STATE?
The following are the key requirements for getting a public online lottery licence in Lagos State:
- Application Letter in the prescribed form.
- Non-refundable application fee of N1,000,000.
- Documentary Evidence of Business Incorporation, namely:
- Certificate of Incorporation.
- Memorandum and Articles of Association.
- A Minimum share capital of N20,000,000.00 (Twenty Million Naira).
- Details of the Directors of the company.
- Registered Office(s) and Business Office(s) of the Company.
- A detailed business plan/proposal on the proposed lottery scheme, providing the following information:
- Business Structure
- Names and profiles of all directors and management staff. Please note that at least one director or management must have gaming industry experience.
- Tax Clearance of all Directors in the preceding three (3) years for the existing company.
- Address of planned location, branches, and outlets.
- Description of operations and management structure.
- A lottery industry analysis that demonstrates an understanding of the Lagos State Lottery Industry. The analysis must include the names of the major players and market shares.
- Marketing and distribution plan.
- Financial Information/Structure
- Management account of your Registration.
- The company’s Bank statement for the last 1 (one) year in support of the financing plan.
- 5 (Five) years projected profit and loss account, balance sheet and cash flow analysis. This should provide for the licence fee and the monthly Tax.
- Capital budget and financing plan: Source of finance, foreign investment and terms of investment (if any).
- Details of the proposed lottery operation
- Proposed trademark, brand name, logo, and colours.
- Details of planned games, types of games.
- Applicable odds system.
- Price structure of lottery ticket.
- Frequency and number of draws.
- Applicant’s game rules and participant code of practice.
- Responsible gaming policies.
- Technical structure
- Detailed information and profile of technical service providers/partners, including but not limited to;
- Draw machine manufacturers and suppliers.
- Web hosting providers.
- Database/backup service.
- An architectural diagram clearly illustrating the technical operation flow.
- Information of software and hardware, including but not limited to;
- Types of servers to be used;
- Details of firewalls, routers and other security features;
- Redundancy implementation (if any).
- Detailed information of software, including but not limited to;
- Operating system;
- Database application specification.
- Process and System Quality Assurance.
Please note that Applicants are required to submit both hard copy and a soft copy (on a USB stick) of their application.
WHAT IS THE PROCEDURE AND TIMELINE FOR COMPLETION?
As part of the application process, the applicant will be required to make a presentation before LSLGA to explain the lottery process with a view to ensuring that the process is transparent and not subject to manipulation.
Please note that the LSLGA requires a minimum of fifteen (15) working days to conduct due diligence on every application. There will be a physical office inspection of the Applicant’s business location.
Where the applicant satisfactorily fulfils the pre-approval requirements, an Approval in Principle (“AIP”) will be granted for 90 days. The AIP is a temporary licence after which the substantive licence will only be issued on fulfilment of ALL conditions highlighted in the AIP.
WHAT IS THE DURATION OF THE PUBLIC ONLINE LOTTERY LICENCE?
The Public Online Lottery and Betting Licence in Lagos is valid for 5 years.
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About KORIAT & CO.
We are a commercial law firm with head office in Lagos, Nigeria. We assist clients from different nationalities in company registration and processing of business licence in Nigeria, Ghana, Kenya, Rwanda and Uganda. We also provide company secretarial services and general legal support for registered businesses.
The above article is not legal advice and does not automatically make our readers our clients unless they specifically instruct us to act or represent them in any way.
Please contact Koriat & Co. through admin@koriatlaw.com or 09067842241 (also WhatsApp) if you require additional information about or assistance in registering or getting a fintech licence in either payment or lending sectors.
