The gaming and betting industry is considered to be one of the fastest-growing industries in Nigeria. The surge is occasioned by a number of factors, including but not limited to improved internet and fintech infrastructure, high youth population, unemployment rate, low income rate, inflation, and rising demand for entertainment. As much as it is a fast-growing business, it is a highly regulated space. Hence, anyone looking to start such a business must navigate legal, licensing, and compliance issues carefully, which is the purport of this article. In this article, we will explore how to start a gaming and betting company in Nigeria, with emphasis on the legal considerations and the process for doing so.
HOW TO START A GAMING AND BETTING COMPANY IN NIGERIA
1. Understand the relevant laws and regulators governing the gaming and betting industry in Nigeria
Before investing money or time, it is expedient that one understands the applicable law and the regulatory agency that regulates betting and gaming in Nigeria. The National Lottery Regulatory Commission (NLRC) was originally the main federal regulator under the National Lottery Act 2005.[1] However, a recent Supreme Court decision in 2024 limited the jurisdiction of the Commission.[2] As of now, the NLRC has restricted national reach under the National Lottery Act. It is confined to the Federal Capital Territory. Outside the FCT, state governments via their Lottery and Gaming Boards or Authorities, now regulate and issue betting and gaming licenses to applicants.
For instance, the Lagos State Lotteries and Gaming Authority (LSLGA) is the relevant regulator and issuer of gaming and betting licenses in Lagos State. It handles licensing of online and land‐based gaming, betting, lottery, scratch cards, etc. Many other states also have their own regulatory boards or authorities. For instance, in Cross River State, it is the Cross River State Lottery and Gaming Agency that regulates betting and gaming in the State.
It is interesting to note that operators can now provide gaming activity in participating States using the Universal Reciprocity Certificate (URC), a single license that authorizes operators to provide gaming activity in participating/member States. This certificate is issued by the Federation of State Gaming Regulators of Nigeria (FSGRN). According to the FSGRN, the objective is to remove overlapping licensing requirements, enhance coordination among regulators, and foster a more stable, investor-friendly business environment.
2. Select Your preferred State(s) of Operation and Licensing Strategy
Since state regulators are very important under the new legal regime, choosing which state(s) you want to operate in is critical. If you are in Lagos, get licensed by the Lagos State Lotteries and Gaming Authority (LSLGA). Lagos has clarified that only a state licence is required for Lagos operations post-Supreme Court ruling. If you want to operate in multiple states, you might apply for the Universal Reciprocity Certificate (URC) under the FSGRN (provided your target state(s) are member states of the FSGRN).
3. Register a company
Before you apply for any gaming and betting license, your business must be legally incorporated in Nigeria. Register with the Corporate Affairs Commission (CAC) within the required minimum share capital of N30,000,000 (thirty million naira), minimum number of directors, shareholders, etc. For many licenses, you need at least two shareholders and two directors.
4. Decide on the kind of gaming and betting license to obtain based on your niche
There are different kinds of licenses and permits in the gaming and betting system. Each of which has its own different legal and operational requirements. Your business plan must specify which of these you intend to provide, and whether online or remote operations are part of the model. The more complex the activity you are offering, the stricter the technical, compliance, and monitoring requirements tend to be.
Examples of gaming and betting licenses include:
- Lottery Licence (public lotteries, scratch cards, lottery draws
- Sports Betting Permit (online and in shops)
- Interactive/Mobile Lottery/Gaming
- Promotional Lottery(CSPs)
- Casino Gaming Permit(CGPs)
- Remote/Offshore Operator Permit (ROP)
5. Application Process and Fees
Once your company is established and your business model is clearer, you must apply for either the relevant license or permit previously listed. However, it must be noted that the application and license process differ depending on the kind of gaming and betting activity you wish to engage in. Below are the general steps for applying for a license:
- Submit an application letter together with the following documents:
- Company incorporation documents
- Business plan,
- Profile of directors and owners,
- Technical and operational design or infrastructure
- Financial projection or information.
- Submit to the State gaming and betting agency where your business resides and pay the required non-refundable application fee. The non-refundable application fee differs depending on the gaming or betting license and the state where you wish to apply, with some ranging between N1,000,000 and N2,000,000.
- Payment of the prescribed licensing fee or permit.
- Provisional approval (AIP): Sometimes, regulators issue an Approval in Principle to allow you to fulfill certain conditions (set up operations, tech infrastructure, security, etc.). For instance, the Lagos State Lottery Board issues an AIP of 90 days after payment of initial fees and meeting initial conditions. In Abuja, the application goes through three phases of approval: the application stage, the pre-approval phase, and the post-approval phase.[3]
- Technical and operational prerequisites: Set up data centers, server locations, security, monitoring, and reporting channels, website policies and standards, etc.
- Once your application meets the requirements, you will be issued a license, and such license or permit, depending on the category, is valid for a period of 5-10 years.
6. Compliance & Operational Requirements
Getting a license is not the end; you must continue to comply with post-licensing standards, and failure to do so may attract fines, revocation, or legal action. Other post-licensing requirements include:
- Reporting and Monitoring: monthly or quarterly operational & financial reports to regulators; system audits; use of monitoring platforms.
- Taxes, Levies & Remittances: pay taxes on gaming turnover; contributions to trust or lottery funds; possibly excise or service taxes.
- Responsible Gaming and KYC / AML: verification of players; age restrictions; measures to prevent addiction; ensure platforms are secure and fair.
- Local and State-level compliance: if you are in Lagos or another state, you must satisfy state laws as well as any URC obligations (if operating across states).
7. Build Infrastructure and Prepare for Launch
Alongside legal steps, you will need to prepare your business for operations. Ensure you build a secure website in compliance with global practices and standards on AML and data security.[4] Also, build solid banking and payment gateway integrations that comply with financial regulations. Staffing is another aspect to consider, hence it is important that you recruit reliably qualified persons to positions such as management, compliance and legal team, technical team, and marketing.
8. Post-Launch Maintenance and Risk Management
Once operational, your obligations do not end at just having the business registered. You have to ensure the following:
- Monitor compliance with all license terms.
- Keep up with changes in laws and regulations, including decisions by courts, changes in state laws, tax laws, and other relevant laws and policies.
- Maintain good corporate governance, transparent accounting, and fair gaming.
- Plan for possible legal, reputational, or financial challenges (fraud, cyber risk, disputes, etc.).
Conclusion
Starting a gaming and betting company in Nigeria is very possible, but it is not trivial. There are many legal, regulatory, financial, and technical hurdles. However, with careful planning, a good legal team, proper capital, and strict compliance, a company can succeed. For potential investors or operators, taking steps early (especially on licensing and regulatory compliance) can make the difference between smooth operations and costly disruptions.
If you’re ready to start a gaming and betting company in Nigeria and you wish to speak with a legal professional, you may reach out to us by completing the contact form using this link, or use the WhatsApp button to speak with one of us, and we’ll be delighted to speak with you.
[1] https://nlrc-gov.ng/wp-content/uploads/2022/04/NLA_2005 as-amended.pdf, Sections 7, 17, and 18
[2] Attorney-General of Lagos v. Attorney-General of the Federation & Ors. (2025) 5 NWLR (Pt. 1984) 43
[3] https://nlrc-gov.ng/guidelines/
[4] https://iclg.com/practice-areas/gambling-laws-and-regulations/nigeria
