Nigeria’s Supreme Court Rules Against Federal Regulation of Lotteries

A Decade-Long Dispute

The legal battle between state and federal authorities began in 2008 when Lagos State challenged the federal government’s authority to regulate lotteries. The argument hinged on the classification of “lottery” as a residual matter—an area not listed in the federal government’s exclusive legislative list. This list includes 68 items such as national defense, banking, and state creation, which are solely under the purview of the national assembly.

Lagos State sought clarification from the Supreme Court on whether lottery regulation should be a state or federal responsibility. The court’s decision has now unequivocally favored the states, stating that the National Lottery Act is void outside Nigeria’s Federal Capital Territory (FCT).

Implications for the Nigerian Lottery Industry

The Supreme Court’s ruling effectively limits the National Lottery Act to the FCT, removing its authority across the rest of the country. According to Templars Law, a prominent legal firm in Nigeria, this decision “redefines the Nigerian lottery industry.”

The Lagos State Lotteries and Gaming Authority welcomed the judgment, calling it a “milestone for the gaming industry in Nigeria” and anticipating positive economic and social outcomes.

Samuel Rowland, COO of the Lagos State Lotteries and Gaming Authority, emphasized the ruling’s importance in adhering to constitutional principles. “This ruling could also prompt a re-evaluation of how other areas of law are legislated and enforced in Nigeria, potentially leading to more legal challenges regarding the distribution of powers between state and federal authorities”, he noted.

State Control and Economic Prospects

Lagos State is expected to take full advantage of its newfound regulatory authority. With more autonomy, states can tailor lottery regulations to local needs, potentially fostering industry growth and boosting state revenues. The ruling may also pave the way for increased investment in state-regulated gaming activities, as operators align with localized requirements.

Beyond the gaming sector, the judgment could trigger a reevaluation of how other laws are legislated and enforced in Nigeria. The redistribution of regulatory powers may inspire similar legal challenges in other sectors, reshaping the balance of authority between federal and state governments.

Nigeria is not alone in grappling with regulatory authority disputes. A parallel issue is unfolding in Brazil, where the state lottery regulator of Rio de Janeiro (Loterj) is at odds with federal regulators. The Brazilian Supreme Court is considering whether Loterj can issue licenses that allow operators to provide services nationally.