The Lagos State Government has moved to clamp down on unlicensed gaming businesses and recover unpaid gaming taxes by directing telecommunications operators and value-added service (VAS) providers to verify the licensing and tax compliance status of gaming companies using their platforms.
The directive, issued by the Lagos State Lotteries and Gaming Authority, gives mobile network operators (MNOs), including MTN, Airtel, Globacom and T2, as well as licensed VAS providers, 30 days to establish whether gaming businesses offering betting, lottery and other gaming services in the state are duly authorised and meeting their tax obligations.
Beyond verifying licences, the authority has ordered the affected companies to submit transaction records, carrier billing data and revenue-sharing information relating to gaming operators from November 22, 2024, to the date of the public notice.
The records will enable the state government to determine outstanding gaming taxes, statutory levies and other payments due from the businesses, including applicable penalties and interest.
The action signals a broader effort by Lagos to close regulatory and revenue collection gaps in the digital gaming market by targeting not only betting and lottery operators but also the telecommunications and technology platforms through which they reach customers and process transactions.
Under the directive, telecom operators and VAS providers must stop onboarding gaming businesses that cannot demonstrate valid state licensing and suspend existing gaming services that lack the required authorisation.
The directive places greater responsibility on telecommunications companies, VAS aggregators and other intermediaries to ensure that gaming businesses using their infrastructure comply with Lagos State regulations.
These platforms can provide access to customers, facilitate gaming transactions through carrier billing and other services, and share revenue with gaming operators. By requiring them to verify licensing and tax status, the state is seeking to prevent unlicensed businesses from using established digital channels to operate within its jurisdiction.
The authority stressed that approval to provide telecommunications or VAS services does not amount to permission to conduct gaming activities in Lagos.
“The Authority hereby clarifies that a licence, authorization or approval issued by the Nigerian Communications Commission (NCC) for telecommunications or VAS activities does not constitute a licence or authorization to conduct or facilitate lottery, betting or gaming activities in Lagos State,” it stated.
The clarification draws a distinction between federal regulation of telecommunications services and the state’s licensing and taxation of gaming activities. It also means that a gaming business cannot rely on the regulatory status of its telecom partner or billing platform as a substitute for obtaining the necessary gaming authorisation.
For Lagos, the approach creates an additional compliance checkpoint within the digital distribution chain, making it more difficult for unlicensed gaming operators to reach customers through telecom-linked services.