The government introduced a 5% withholding tax on gaming payouts.
Next, licensed operators must immediately deduct the tax from players’ net winnings.
Lagos New Gaming Tax
Then, the regulator announced the directive publicly.
After that, its Chief Executive Officer confirmed the policy takes immediate effect.
Compliance Requirements
Subsequently, gaming companies deduct 5% before they credit winnings to players’ accounts.
Meanwhile, operators remit the deducted tax directly to the state tax authority.
In addition, regulators require players to provide their National Identification Number for KYC compliance.
At the same time, operators manage deductions, remittances, and documentation to ensure transparency.
Importantly, players use the deducted withholding tax as a tax credit in filings.
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Industry Impact
Consequently, players receive slightly lower payouts because operators deduct tax at source.
Therefore, operators upgrade systems to automate tax calculation, deduction, and remittance processes.
As a result, regulators reduce tax evasion and formalise revenue collection across the gaming sector.
However, some stakeholders warn reduced payouts may discourage players or shift activity to unregulated platforms.
Overall, authorities tighten oversight and formalise revenue collection within the gaming industry.
Earlier, regulators warned residents against patronising unlicensed gaming operators in October 2023.
Additionally, authorities issued banning orders against companies offering gambling services without authorisation.
Finally, regulators state operating without a licence breaches the relevant gaming law.
