The Lagos State Lotteries and Gaming Authority (LSLGA) has required telecom operators and value-added service (VAS) providers to verify gaming operators' licenses within 30 days and hand over transaction data to the regulator. The requirement is set out in a public notice published Monday, Oct. 12.
The notice is addressed to telecom operators, aggregators and VAS providers through which residents of the state receive lottery, betting and gaming services. The channels it names include USSD, SMS, short codes, mobile apps and carrier billing.
What the regulator requires
Within 30 days, the recipients must:
- verify the license and tax status of each operator on their platform;
- give LSLGA transaction and revenue-share data for the arrears period;
- stop onboarding operators that have no license;
- suspend services that are offered without a license.
LSLGA said approval from the Nigerian Communications Commission (NCC) for telecom or VAS activity does not authorize lotteries, betting or gaming in Lagos. Using an intermediary does not remove the license requirement, it said.
Arrears and liability
Operators must remit taxes and levies for the period from Nov. 22, 2024, to the date of the notice. On that day, Nigeria's Supreme Court ruled that lotteries and games of chance fall within the authority of state governments.
The authority will calculate arrears from verified transaction and revenue data. Penalties and interest provided by law may be added. The notice does not state the total amount LSLGA intends to recover or the size of any penalties.
The regulator cited the 2021 state law on LSLGA. Section 33(3) bans operating without a license, and Section 101(5) makes directors and officers of a company personally liable if an offense is committed with their consent, connivance or neglect.
After the 30 days, the authority will issue official notices and move to enforcement. LSLGA urged interested parties to cooperate with the regulator.
Nigeria is not the only place where telecom companies are being drawn into gambling oversight in Africa. In August, Uganda's regulator urged telecom operators to help fight illegal online gambling.
