The Lagos State Government has commenced the enforcement of a five per cent withholding tax on winnings from licensed gaming platforms operating across the state.
This development was announced by the Chief Executive Officer of the Lagos State Lotteries and Gaming Authority, Are Bashir, in a public notice released on Friday.
According to him, the new tax policy takes immediate effect and applies to players’ net winnings. The deduction will be made at the point of payout before funds are released to winners.
Bashir instructed all licensed gaming operators within Lagos to begin complying with the directive without delay, stating that the framework aligns with existing Nigerian tax regulations and industry guidelines.
The notice further explained that the five per cent tax will be automatically deducted before winnings are paid out and subsequently remitted to the Lagos State Internal Revenue Service, the recognised statutory tax authority in the state.
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Bashir described the move as part of broader reforms aimed at strengthening oversight within the rapidly expanding gaming sector.
“The measure forms part of Lagos’ broader drive to strengthen tax compliance, transparency, and accountability in the rapidly expanding gaming sector,” the notice read.
Under the new system, players must provide their National Identification Number (NIN) in compliance with Know Your Customer (KYC) regulations.
Bashir clarified that licensed gaming operators will be solely responsible for making the deductions and remitting the tax in line with regulatory requirements. He added that players will receive their winnings after the statutory deduction, with proper documentation maintained to ensure transparency.
He also noted that the deducted amount will count as a tax credit for the player.
“All licensed gaming operators in Lagos State have now been formally directed to commence the deductions with immediate effect,” the notice said.
Reaffirming the purpose of the policy, Bashir stated that the initiative is designed to promote effective regulation of the gaming industry while ensuring that both operators and players meet their tax obligations within the state.
