Beginning 1 January 2026, all licensed operators will pay a flat 11% levy on Gross Gaming Revenue (GGR) earmarked for “good causes.” The uniform rate applies across verticals such as lottery, sports betting and casino replacing fragmented, state-by-state approaches that treat products differently.

In parallel, licensing is being standardised at ₦100m ($48,224) per year per operator category, eliminating distinctions between retail and online businesses. Regulators say the change is meant to simplify compliance and create a clearer, more predictable cost base for market entrants.

Compliance, data and revenue flow

Under the framework, most payments will go directly to state treasuries, while the Federation of State Gaming Regulators of Nigeria will coordinate the “Universal Reciprocity Licence” that supports cross-state operations. To allocate taxes correctly by state, operators must implement geofencing/geo-tracking and capture customer location during onboarding.

Operators have also been told to clear arrears dating back to November 2024 under the previously applicable rates, with the question of withholding tax on winnings left to each State Internal Revenue Service. A payment plan for the backlog and further guidance were discussed with industry in Lagos.

Context and what’s next

The overhaul follows a landmark Supreme Court ruling on 22 November 2024 that struck down the federal National Lottery Act outside the Federal Capital Territory, confirming that lotteries and gaming fall under state jurisdiction. That decision paved the way for a state-led, unified regime coordinated through the FSGRN.

FSGRN leaders signalled they are open to fine-tuning the rate, noting that 11% is below the c.19% European average; they also highlighted ongoing efforts to expand the number of states participating in the reciprocity framework. With the start date set for January 2026, operators have a clear runway to adjust tech, reporting and cash-flow models to the new rules.

Source: https://www.igamingtoday.com/nigerian-gaming-operators-to-pay-11-tax-as-fsgrn-announce-new-licensing-rules/