Nigeria’s booming online betting at crossroads, legal limbo

By Ginika Okoye, News Agency of Nigeria (NAN)

As online betting and gaming continue rapid rise across Nigeria, many citizens have raised alarm over the growing involvement of youths, underaged persons and unemployed individuals in the practice.

Their concerns are compounded by the absence of a unified regulatory framework, especially after the Supreme Court nullified the National Lottery Act, leaving the industry in a legal limbo.

Online gaming, which involves placing stakes on the outcomes of sports events, games and other virtual activities through apps and websites, has become a booming sector.

Approximately 60 million Nigerians are said to frequently “bet daily” especially on sports betty platforms, while online gambling market is projected at over 3.63 billion dollar (about N5.26 trillion)

While online gaming offers entertainment and financial opportunities, many Nigerians warn that it also poses huge social, economic and psychological risks, if left unchecked.

Some stakeholders in Abuja noted that online gaming, though increasingly popular, comes with both positive and negative consequences, and requires clear legal safeguards.

Before now, the National Lottery Regulatory Commission (NLRC), created by the National Lottery Act 2005, was responsible for licensing and regulating lottery and games-of-chance operators in Nigeria.

Its functions included ensuring compliance, supervising lottery activities, and managing funds generated from such operations.

On Nov. 22, 2024, however, the Supreme Court nullified the National Lottery Act on the grounds that the National Assembly lacked the constitutional power to legislate on lotteries nationwide.

The Court ruled that lotteries and games of chance are not on the Exclusive or Concurrent Legislative Lists, meaning they fall under state, not federal, legislative authority.

As a result, the Act and all powers establishing the NLRC were declared unconstitutional, except within the Federal Capital Territory (FCT).

Regulatory authority over lotteries now rests with individual state governments, requiring operators to seek licences from state lottery boards rather than a national body.

Meanwhile, a Central Gaming Bill, aimed at harmonising regulations across the country, has already scaled third reading at the Senate and awaits concurrence.

However, legal experts have warned that the new bill may face constitutional hurdles.

An Abuja-based lawyer, Joseph Obari, expressed fears that the Central Gaming Bill could once again be struck down by the Supreme Court if enacted.

According to him, gaming and lottery matters fall under the Residual Legislative List, meaning only the state Houses of Assembly have powers to legislate on them.

He argued that the attempt to create a central regulatory authority contradicts the spirit of the Constitution and risks being invalidated.

Obari explained that, with the Supreme Court judgment in place, operators are forced to navigate multiple state regulatory bodies, each with different requirements, licencing fees and levels of preparedness.

He noted that currently, only Lagos and Oyo states appear capable of effectively regulating the industry, leaving others struggling to keep pace.

He also warned that the increased regulatory cost for operators could be transferred to the gaming public.

Beyond this, Obari believed that the new legal landscape could lead to declining patronage in northern states, where Sharia Law prohibits gambling.

Dr. Abdulrahman Musa, an economic analyst, however, offered a more optimistic view, noting that online gaming, if properly managed, can significantly boost government revenue through taxes and licencing fees.

According to him, the industry contributes to job creation and economic growth.

However, he warned that when poorly regulated, online betting could lead to financial instability, especially when individuals accumulate debts in hopes of recovering their losses.

Miss Kate Atswen, a student psychologist at the University of Nigeria, Nsukka, acknowledged that online gaming can foster friendships and serve as a healthy coping mechanism for stress and anxiety.

However, she warned of the darker side: addiction, sleep loss, and mental health deterioration, especially among youths who lack adequate guidance and discipline.

Speaking from religious perspective, Pastor Victor Okeke of Living Faith Church, Mararaba, attributed the rising interest in online betting to the desire for sudden wealth.

Quoting 1 Timothy 6:10, he cautioned that the love of money continues to push many away from their faith.

The Clergy urged Nigerians to place spiritual values and God’s guidance above the lure of quick financial gain.

To the contrary, Mrs Sarah Onifade, an employee at an online betting centre, said the business had been personally transformative for her and her family.

She emphasised that online gaming is essentially for “fun and profit,” and described the industry as lucrative, although not without risks.

However, she stressed the need for governments at all levels to resolve regulatory disputes to attract investor confidence and stabilise the sector.

For many Nigerians, the dangers of online gaming are not theoretical, rather, they are deeply personal.

Mr Emeka Nnamani (pseudo name) shared a heartbreaking account of how betting destroyed his once-promising career and family.

He recounted losing his job in Port Harcourt due to debts accumulated from constant online betting, borrowing excessively, and eventually relocating to Lagos to escape lenders.

Attempts by his family to help him recover failed until, in his words, “God arrested me.”

His story paints a vivid picture of how gambling addiction can spiral out of control.

Similarly, Aloysius Tene admitted that online gaming had negatively affected his studies.

Introduced to betting by friends, he soon began spending most of his pocket money on it, to the detriment of his academic performance.

Mrs Rebecca Otubor, an Abuja-based parent, warned that online gaming has become “disastrous and addictive,” likening it to the old coupon gambling tradition where breadwinners spent their earnings on bets.

She said the trend has fuelled strained family relationships, and promoted negative values such as materialism, greed and lack of empathy among youths.
Some stakeholders are, therefore, of the opinion that the new bill, if eventually sails through, should be able to address the challenges

Titled, the Central Gaming Bill 2025 (HB 2062), it was sponsored in the House by Benjamin Kalu, Deputy Speaker of the House of Representatives and six other lawmakers and presented in the Senate by Opeyemi Bamidele, the Senate Leader .

It seems to harmonise licencing, taxation and operations across all states, repeal the National Lottery Act 2005 and its 2017 amendment and provide a comprehensive framework for digital gaming that crosses state boundaries.

The stakeholders believed that, if successfully passed, the bill also hopes to resolve the confusion created by the Supreme Court judgment.

Lagos State has, however, argued that the Central Gaming Bill is unconstitutional because it violates a binding judgment that already voided the National Lottery Act for legislative overreach.

Lagos also rejected the idea that “online and remote gaming” gives the federal government new regulatory powers.

It maintains that digital delivery does not change the nature of gaming as a state-controlled activity, and therefore the National Assembly cannot claim jurisdiction simply because technology has evolved.

The state has, therefore, approached the Supreme Court to challenge the Bill and seek contempt proceedings against the National Assembly.

It contended that, continuing with the legislation constituted disobedience and threatens both state autonomy and the constitutional balance of Nigeria’s federal system.

With these developments, Nigeria, no doubt, is at crossroads, as online gaming continues to expand rapidly among youths and adults alike.

While the industry offers economic benefits, employment opportunities and entertainment value, it also presents pressing dangers – addiction, financial ruin, family breakdowns and mental health risks -.

Stakeholders, from legal practitioners to psychologists, religious leaders, parents and operators, agree on one thing: the sector must be regulated effectively, whether by states or through a constitutionally sound national framework.

As the country awaits the fate of the Central Gaming Bill, many Nigerians hope for a system that protects vulnerable citizens while harnessing the economic potential of the rapidly evolving online gaming industry.

(NANFeatures)