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Nigeria鈥檚 Supreme Court has ruled that the National Assembly does not have the power to legislate gambling, allowing individual states to oversee gambling in their jurisdictions in a move that potentially ends years of disputes between local authorities and the national gambling regulator.
Seven judges unanimously issued the ruling nullifying the National Lottery Act on November 22, according to local media reports.
The ruling has not been issued publicly yet, meaning its ramifications are not entirely clear.聽
However, the Lagos State Lotteries and Gaming Authority (LSLGA), which helped spearhead the legal challenge, quickly welcomed the 鈥済roundbreaking ruling鈥, which it said 鈥渃onfirms only states of the federation have the power to regulate lottery and all gaming activities in Nigeria鈥.
Bashir Are, the chairman of the Federation of State Gaming Regulators, is also the CEO of the LSLGA.
鈥淭his judgment nullifies the National Lottery Act (NLA) in its entirety, paving the way for states to take control of their gaming industries. As noted in the Supreme Court's ruling, lottery regulation falls outside the Exclusive Legislative List of the 1999 Constitution (as amended),鈥 the LSLGA said.
The Lagos state government is now urging all illegal and unlicensed operators to immediately become licensed by the LSLGA or face prosecution.聽
Nigeria鈥檚 national government has for a long time tried to resolve a raft of challenges facing the gambling industry, in particular calling on state and federal regulators to work together.
In 2023, the differences between the two regulators became publicly apparent when the National Lottery Regulatory Commission (NLRC) had to clarify the status of several operators it licenses, after a notice from the LSLGA claimed they were 鈥渋llegal and unlicensed鈥, causing widespread confusion.
Questions now turn to the impact on the National Lottery Regulatory Commission and the operators it licenses at a national level.聽
Additionally, the ruling could end confusion about whether operators must pay state and national taxes and fees. The government has previously stated that revenue from the industry was the principal cause of tension between state and federal regulators.
