The Lagos State Lotteries and Gaming Authority has stepped up efforts to curb unlicensed gaming activities in the state, directing MTN Nigeria, Airtel, Globacom, T2 and licensed value-added service (VAS) providers to verify the licences and tax compliance status of gaming businesses using their platforms within 30 days.
The directive requires the telecommunications operators and service providers to ensure that gaming businesses offering lottery, betting and other gaming services through their networks and digital channels possess valid licences recognised by the state regulator and have met their tax obligations.
As part of the compliance exercise, the authority has also demanded transaction records, carrier billing data and revenue-sharing information relating to gaming operators from November 22, 2024, to the date of its public notice.
The affected companies have been instructed to stop onboarding gaming businesses that cannot demonstrate valid state licensing and suspend existing services linked to operators that lack the required authorisation.
The move places telecommunications companies and technology intermediaries at the centre of Lagos State’s efforts to enforce its gaming regulations, requiring them to scrutinise the businesses operating through their platforms even when they are not directly involved in running betting or lottery services.
The authority said the records requested from the companies would help determine outstanding gaming taxes, statutory levies and other payments due from affected operators, including applicable penalties and interest.
It also warned that authorisation from the Nigerian Communications Commission (NCC) to provide telecommunications or value-added services does not permit a company to conduct or facilitate gaming activities in Lagos without the approval required under state law.
“The Authority hereby clarifies that a licence, authorisation or approval issued by the Nigerian Communications Commission (NCC) for telecommunications or VAS activities does not constitute a licence or authorisation to conduct or facilitate lottery, betting or gaming activities in Lagos State,” it stated.
The regulator further maintained that the involvement of mobile network operators, VAS aggregators, payment channels or carrier billing platforms does not remove the obligation on gaming businesses to obtain valid licences from the state authority.
The directive is backed by provisions of the Lagos State Lotteries and Gaming Authority Law 2021, which restricts the operation and facilitation of gaming activities without the necessary authorisation.
Section 33(3) of the law prohibits persons without a subsisting licence or authorisation from conducting gaming activities, deploying gaming equipment, managing or accepting wagers, renting property, employing personnel or advertising for gaming activities in the state.
The provision extends the scope of regulatory compliance beyond the direct operators of gaming businesses to activities and services that facilitate their operations.
The authority also drew attention to Section 101(5) of the law, which provides for the potential liability of company executives where an offence committed by an organisation occurs with their consent or connivance, or is attributable to their neglect.
Under the provision, a director, manager, secretary or other principal officer may be held liable alongside the company where the conditions stipulated by the law are established.
Consequently, the regulator advised directors and principal officers of telecommunications companies, VAS aggregators and other intermediaries to exercise due diligence to prevent their platforms from being knowingly or negligently used to facilitate unlawful gaming activities.
The authority warned that the expiration of the 30-day compliance period would trigger the issuance of appropriate statutory notices and the pursuit of available regulatory and enforcement measures against operators and other entities found to have failed to comply.
