Landmark Supreme Court Ruling Opens New Era for Nigerian Gaming Regulation

States Gaining Authority in Gaming Regulation

The Supreme Court’s ruling, delivered last month, invalidates the federal government’s claim to oversee gaming and lotteries nationwide. Instead, the Court decreed that gaming regulation is a matter reserved for state governments, a decision that has profound implications for how gambling laws will be structured across Nigeria.

The Lagos state government, which had raised the issue as early as 2008, convened the Federation of State Gaming Regulators of Nigeria (FSGRN) on December 3rd to discuss the ruling. The meeting, attended by various state authorities, concluded that the Supreme Court’s decision marks a “watershed” moment for the future of gambling regulation in the country.

Bashir Are, CEO of the Lagos State Lotteries and Gaming Authority (LSLGA) and Chairman of the FSGRN, emphasized that the ruling opens up new avenues for innovation and job creation within the gaming sector.

According to Are, “The decision provides a fertile ground for innovation, responsible gambling, and job creation in gaming technology, game development, and entertainment.” He added, “Our mission is to transform Nigerian youths from being passive participants to active creators in a thriving gaming ecosystem.”

Empowering States to Tailor Regulations

State regulators, such as Olajide Boladuro, director general of the Oyo State Gaming Board, welcomed the ruling for providing the autonomy to create gambling regulations that align with the unique needs of each state. “The judgment has empowered states to develop gambling regulations that suit their unique cultures and economic landscapes,” Boladuro said.

The ruling also saw a call for increased collaboration between states, as highlighted by Prince Imuomuen, a representative of Edo State’s gambling regulator. “Through synergies, states can ensure operators have clear guidelines and residents are better protected,” Imuomuen stated. “FSGRN is committed to fostering partnerships that uphold the highest standards.”

Akinroluye Olajide, chairman of the Ondo State Lotteries Regulatory Commission, added that inclusive engagement with operators will be vital in shaping future regulations. “This ruling enables us to sanitise the industry by integrating willing operators into a legitimate framework,” Olajide said. “A collaborative approach ensures a sustainable and thriving gaming sector for all.”

Strengthening the Universal Reciprocity Licence (URL) System

The FSGRN also reaffirmed its commitment to the Universal Reciprocity Licence (URL) regime, a system designed to streamline licensing processes across member states. The URL system, which became fully operational on December 1st, is viewed as a vital tool for creating a standardized yet flexible licensing ecosystem. Are noted that the FSGRN is fully prepared to enforce the URL regime and encouraged operators to adopt the system promptly.

“URL reflects our dedication to building a gaming industry where operators face reduced bureaucratic hurdles while ensuring compliance with global best practices and standards,” Are stated. “With the URL regime, we are creating a standardised yet flexible licensing ecosystem that will enhance industry credibility, reduce operational bottlenecks, and drive growth in respective states.”

A Unified Approach to Regulation

The FSGRN also expressed its readiness to collaborate with federal agencies such as the Corporate Affairs Commission, the Advertising Regulatory Council of Nigeria, and the Nigeria Communications Commission. These partnerships aim to align state-level gaming regulations with national policies, ensuring a cohesive and comprehensive framework for Nigeria’s growing gaming sector.

“This is a defining moment for Nigeria’s gaming industry. With a united resolve, we will strengthen high regulatory standards, enhance revenue, and protect residents from illegal gaming activities”, Are concluded.