The Lagos State Government has introduced a mandatory 5% withholding tax on all sports betting winnings generated within the state.
The Lagos State Lotteries and Gaming Authority (LSLGA) confirmed the policy in a statement, directing all licensed operators to automate deductions at the point of payout.
According to the state’s government, all licensed betting platforms henceforth must deduct 5% from the winnings of bettors before the funds are released to the account of users.
Winners are required to provide their National Identification Number (NIN) to fulfill “Know Your Customer” (KYC) requirements before withdrawing funds, in order to prevent fraud and ensure that high earners contribute to the developmental funding of the state.
The deducted tax is remitted automatically to the Lagos State Internal Revenue Service (LIRS) as a withholding tax credit.
Previously, individual winnings across betting platforms in Lagos were untaxed due to challenges in voluntary reporting and a lack of integrated digital tracking.
The government aims to formalize the sector and create a consistent revenue stream from the gaming industry, by partnering with the Lagos State Internal Revenue Service (LIRS).
The Lagos State Lotteries and Gaming Authority, led by CEO Bashir Are, stated that the rule was meant to enhance tax compliance, transparency, and accountability across the gaming sector of the state. All licensed betting operators are urged to implement the deduction immediately.
