14/04/2021
NEWS STORY
Nigeria is a giant on many fronts.
Not only is it the most populous black nation on earth, but the oil-rich country is also renowned for repeatedly churning out stars across various sports. Like most countries where sports are a tool for upward social mobility and unison, betting is prevalent. Several sports stars like Jay-Jay Okocha, Nwankwo Kanu and Victor Ikpeba have recently featured in adverts and promotional videos for sports betting companies.If you want to learn more about sports and soccer events, you need to follow this link.
The vast love and passion for sports are reflected in how Nigerians crowd viewing centers to watch football matches on weekends and global competitions. Some of the highlights of viewing centers' owners include World Cups, the UEFA champions league nights and English Premier League. Across the country, the love for football is unmistaken with jerseys and stickers a recurring sight. Nigeria's passion for sports has attained international recognition, with FIFA extending an invite to the Nigerian Supporters Club during the World Cup when the country failed to qualify. It has also been recognized for its exceptional feats at the Olympics, African Nations Cup, Basketball, Athletics and tennis meet worldwide.
In this article, our author Kate Richardson examines the legal regulations of Nigeria's sports betting industry. You can check out her profile here.
Sports Betting Regulation In Nigeria
Sports betting in Nigeria is chiefly regulated by the National Lottery Regulatory Commission (NLRC). The NLRC is charged with registering and issuing licenses to potential sports betting companies and bookmakers in the country. The federal body was created by the National Lottery Act of 2005. By the provisions of the act, the NLRC is charged with ensuring transparency and accountability in lotteries through the issuance of gambling licenses. It's also charged with protecting the general public, players, and stakeholders from fraudulent elements in the gambling space.
Before starting a gambling business in Nigeria, companies and individuals with such intentions must submit applications to the NLRC for a license. Failure to do this contravenes the National Lottery Act and attracts suspension, closure and court action against such company. The requirements for obtaining a gambling license as an operator in Nigeria include the following;
• The payment of a N2million application fee to cover costs of the processing;
• A list of the names and profiles of would-be directors of the company;
• Evidence of company share capital totalling a minimum of N30 million;
• Proof that the chosen domain name has been registered and is effective;
• Information on what type of games to be hosted, whether live betting, virtual or esports;
• Evidence of an optimal web security system which includes firewalls, Cloudflares, routers, among others.
The above shows that an individual cannot successfully apply to the NLRC for an operating license. This is because the Act requires the company to have directors, as well as minimum share capital. Such a company thus must be incorporated and registered with the Corporate Affairs Commission. It's important to note that the National Lottery Act is silent on online and land-based casinos. However, these are fully operational in the country, and none of such facilities has been penalized. Lastly, the National Lottery Regulatory Commission maintains a list of registered gambling operators on its website. It's advisable to go through this list before registering with a new sportsbook in Nigeria.
The National Lottery Regulatory Commission isn't the sole regulating body of gambling operators in Nigeria. There is also the Lagos State Lottery Board (LSLB). The LSLB is more popular than its federal counterpart because of the commercial propensity of Lagos state. The former capital is home to several industrial powerhouses, including many sports betting companies. As a result, more gambling operators have an LSLB license than those with an NLRC license. This may be because the LSLB was founded before the NLRC. The Lagos State Lottery Law, which is the LSLB's enabling law, was passed in 2005, giving the LSLB the mandate to regulate sports betting, pool betting, lotteries, and other gaming activities within the state. This was followed by the Casino regulatory framework's administrative transfer to the LSLB by the state's Ministry of Finance.
In essence, a gambling operator may register with either body depending on how broad its scope of operation is. If you're looking to operate across the 36 states of Nigeria, then an NLRC license is what you need. However, if your gambling business is confined to Lagos state, the LSLB license will suffice. Due to the internet's unchecked nature in Nigeria, many sportsbooks operating in the country do so with the LSLB license. Thus, a sports bettor in Kaduna state may place bets on a gambling operator with the restrictive LSLB license. It remains to be seen if the regulatory bodies will take steps to curb this action as many bookmakers operate outside their license scope.
Is Sports Betting Legal In Nigeria?
In Nigeria, sports betting is legal as long as you meet the age of majority. The age of the majority, according to Nigerian law, is 18. This is to prevent school children and younger kids from developing gambling problems in their childhood. Although gambling used to be illegal by the Prohibition of Gaming Machines Act, there are now sports betting regulators charged with making land and online gambling safe for Nigerians. Currently, you're free to patronize gambling operators in Nigeria without fear of breaking the law.
However, punters should ensure that such bookmakers are registered with the relevant authorities to ensure their safety. To this end, you can find a list of the registered and trustworthy bookmakers operating in the Nigerian gambling space at Mightytips. You can also subscribe to our emails for betting tips, predictions and news updates on your favourite sports. In conclusion, always remember to gamble responsibly to avoid addiction and bankruptcy.