The Lagos State Lotteries and Gaming Authority (LSLGA) has issued a 30-day ultimatum to telecommunications operators and value-added service (VAS) providers to verify gaming licences and submit transaction records for the assessment of unpaid taxes and levies. The directive, contained in a public notice dated October 12, applies to companies supporting lottery, betting, and gaming services through USSD, SMS, short codes, mobile applications, and carrier billing.
Scope of the Directive
The regulator's order covers telecommunications operators, mobile network operators, VAS aggregators, and service providers whose platforms facilitate gaming activities. The LSLGA clarified that licences issued by the Nigerian Communications Commission (NCC) for telecommunications and VAS operations do not permit businesses to offer or facilitate gaming services in Lagos without the required state authorisation.
Affected companies are required to verify the licensing status and gaming-tax compliance of every gaming operator using their platforms. They must also submit transaction records, carrier-billing details, and revenue-sharing information covering the period from November 22, 2024, to October 12, 2026, when the notice was issued.
Tax Assessment and Compliance Requirements
According to the regulator, the submitted records will help determine outstanding gaming taxes, statutory levies, and other financial obligations, including applicable penalties and interest. Gaming businesses with outstanding obligations must regularise their licences and settle assessed arrears within the 30-day compliance period.
The authority also instructed telecommunications and VAS companies to stop onboarding gaming operators without valid licences or recognised authorisations. Existing services linked to non-compliant operators must be suspended. The regulator stressed that using telecom infrastructure, payment channels, carrier-billing platforms, or other technology intermediaries does not exempt gaming businesses from state licensing rules.
Legal Basis and Supreme Court Judgment
The LSLGA based its directive partly on a November 22, 2024, Supreme Court judgment in Attorney-General of Lagos State & Ors. v. Attorney-General of the Federation & Ors., Suit No. SC/1/2008. The judgment affirmed that lotteries and games of chance fall within the residual legislative powers of state governments.
The authority also cited Section 33(3) of the Lagos State Lotteries and Gaming Authority Law 2021, which prohibits specified gaming activities without a valid licence or authorisation. Under Section 101(5) of the law, directors, managers, secretaries, and other principal officers may face liability alongside their companies where an offence occurs with their consent or connivance, or results from their neglect.
Enforcement and Next Steps
The regulator warned that it would issue appropriate statutory notices and pursue available enforcement measures against businesses and other entities found to be operating without the necessary approvals or failing to meet their obligations after the 30-day deadline. Gaming operators were also reminded to account for and remit all applicable licence fees, gaming taxes, and statutory levies, including the Good Causes Levy, in line with Lagos State's gaming laws and regulations.
