Introduction
The operations of all online gaming products, such as online casinos, sports betting, poker, lotteries, bingo, etc, in Lagos State are regulated by the Lagos State Lottery Board (“LSLB”).
Please note that in order to engage in sports betting business in Nigeria, the applicant requires both Federal and State licences. The Federal Licence is granted by the National Lottery Regulatory Commission (“NLRC”). This article focuses on the sports betting licence of the Lagos State Government granted by the LSLB to those gaming companies seeking to do business within Lagos State.
Please read more about the Federal Licence HERE.
Also, you can read about Sports Betting Licence of Oyo State here.
1. Requirements for Registration of Online Sports Betting Company
In order to engage in any online gaming business, the promoters must be registered as a private company limited by shares with the Corporate Affairs Commission (“CAC”). The requirements for registration are as follows:
i. Two proposed names for name search and screening for approval of the CAC;
ii. A registered address in Nigeria;
iii. Phone number and email address of the proposed company;
iv. A minimum of one (1) shareholder and one (1) director whose names, residential address(es), phone number(s), email address(es), occupation, electronic signature(s), and government-issued means of identity;
v. A minimum share capital of N20 Million and the distribution of the shares amongst the shareholders (if more than one);
vi. A business object to carry out online gaming products and or services;
vii. The details of any person having significant control over the company either directly or indirectly.
2. Costs for Registration of Online Sports Betting Company
The total costs for registration of an online sports betting company with the CAC is about N300,000 (Three Hundred Thousand Naira) which comprises the following:
i. CAC Filing Cost of N105,000 payable to CAC for registering a company with N20,000,000 share capital. The sum is calculated by using N10,000 for the initial N1,000,000 of the N20 Million share capital and N5,000 for every subsequent N1,000,000 of the remaining N19M of the share capital.
ii. Stamp Duty payable to the Federal Inland Revenue Service (“FIRS”) which is calculated by multiplying the amount of share capital by 0.075% and divide the result by 100 (i.e. 20,000,000 x 0.75% divided by 100).
iii. Miscellaneous expenses relating to the company registration and extraction of post incorporation documents from CAC portal (if any), Remita charges, bank charges, etc., which should not exceed N45,000.
3. Application Requirements for the Online Gaming Licence
Upon the registration of the company, the following requirements must be compiled before submitting application the LSLB:
- An Application Letter;
- Non-refundable Application Fee of N500, 000 (Five Hundred Thousand Naira);
- The following Documentary Evidence of Company Registration:
i. Certificate of incorporation;
ii. Memorandum & Articles of Association;
iii. CAC Documents that the company was registered with a minimum share capital of N20,000,000 – Twenty Million Naira;
iv. CAC Documents showing details of the Company’s directors;
iii Proof of the registered and or administrative office(s).
4. Detailed business plan/proposal on the online sports beng scheme. The proposal should provide information and documentation on the following:
Business Structure Information such as:Address of the registered office, branches and planned locations.
i. Names and Profile of the company’s director(s);
ii. Tax Clearance Certificate (“TCC”) of Director(s) in the last three (3) Years.
iii. Description of Operations and Management Structure.
iv. A Sports Betting Industry Analysis that clearly demonstrates an understanding of the sports betting industry. The analysis must include names of major players and market share;
v. Marketing and distribution plan;
vi. Address of planned location, branches and outlet(s). Please note that all the outlets must be lock-up shops. Kiosks and mobile vendors are not allowed;
Proposed Sports Betting Operations
i. Details of Planned Games
ii. Relevant Sport activity
iii. Approximate odds to be used
iv. Prizes & Price structure
v. Number and frequency of sports/games
vi. Operator’s game rules and participants’ Code of Practice.
Financial information/projections
i. Management account of your organization;
ii. Company’s bank statement for the last One (1) year in support of financing plan;
iii. Five (5) years projected Profit and Loss Account, Balance Sheet, Cash Flow analysis – this should provide for the annual licence fee and monthly.
Please note that the licence fee is N50,000,000 (Fifty Million Naira) for the first year, while annual renewal is N10,000,000 (Ten Million Naira). Monthly gaming tax is 2.5% of sales revenue.
iv. Nature and extent of financing and capital investment. Indicate if foreign investment is involved in the business and if any, terms of investment;
v. Capital budgets showing set up cost and asset schedule over 5 years;
5. Detailed information about the applicant’s bookmaker, betting sites and technical consultants.
6. Detailed information on proposed technical topography including a schemac diagram clearly illustrating the technical operational flow;
General information:
- Architectural diagram clearly illustrating the technical operational flow
- Proposed platform – self host or cloud based
- If cloud based, the contact information of the hosng company
Hardware Information:
- Detailed information on the type of servers to be used;
- Detailed information on firewall, routers, etc.;
- Redundancy implementations (if any);
Software Information:
- Operating systems specifications;
- Database application specifications;
7. Detailed Information about the Processes and System Quality Assurance.
Please note that the applicant will, on invitation, be required to make presentation before LSLB in accordance with the company’s technical operational flow.
4. Timelines for Registration and Getting the Online Sports Betting Licence
i. Timeline for Company Registration: The registration of a company by the CAC will be completed within 24 hours after submission.
ii. Timeline for Getting an Online Sports Betting Licence: LSLB requires a minimum of ten (10) to fifteen (15) working days to conduct due diligence on every application. Where the applicant satisfactorily fulfills the pre-approval requirements, an Approval in Principle (“AIP”) will be granted for 90 days.
iii. Lifespan of an AIP: Please note that an AIP is a temporary licence to enable the company operate for a period not exceeding Three (3) months during which the company will be excused from paying tax. The substantive licence will only be issued on fulfillment of all the conditions highlighted in the AIP, usually before the expiration of the AIP.
Please read about Sports Betting Licence of Oyo State here.
For more information on how to apply for an online sports betting licence, please contact Koriat & Co. via admin@koriatlaw.com or 09098966103.
