Lagos Gives MTN, Airtel and Other Telecom Operators 30 Days to Verify Betting Licences

The Lagos State Lotteries and Gaming Authority has given mobile network operators (MNOs), including MTN, Airtel, Globacom and T2, as well as licensed value-added service (VAS) providers, 30 days to verify the licences and tax compliance status of betting and gaming businesses operating through their platforms in Lagos State.

The directive requires the affected companies to submit transaction records, carrier billing data and revenue-sharing information relating to gaming operators for the period beginning November 22, 2024, up to the date of the authority’s public notice.

The regulator has also ordered telecom operators and VAS providers to stop onboarding gaming businesses that cannot provide evidence of valid state licences. Existing gaming services operating without the required authorisation must also be suspended.

## Lagos Tightens Oversight of Betting and Gaming Services

Under the new directive, telecom operators, VAS aggregators and service providers are required to confirm that every gaming business using their platforms to serve customers in Lagos has the appropriate licence and complies with applicable gaming tax obligations.

The authority said the information collected would help determine outstanding gaming taxes, statutory levies and other financial obligations, including applicable penalties and interest.

The move places additional compliance responsibilities on telecommunications companies and technology intermediaries that facilitate betting transactions, even if they do not directly operate gaming businesses.

The authority stressed that licences or approvals issued by the Nigerian Communications Commission (NCC) for telecommunications and value-added services do not authorise companies to operate or facilitate betting, lottery or other gaming activities in Lagos State.

It also clarified that using telecom networks, carrier billing systems, payment channels or VAS platforms does not exempt gaming operators from obtaining the necessary approval from the state regulator.

## Unlicensed Gaming Could Trigger Regulatory Sanctions

The authority said the directive is backed by the Lagos State Lotteries and Gaming Authority Law 2021, which prohibits the operation and facilitation of gaming activities without the required authorisation.

Section 33(3) of the law prohibits unlicensed individuals and entities from conducting gaming activities, deploying gaming equipment, managing or accepting wagers, renting premises, employing personnel or advertising gaming services in Lagos State.

The regulator also cited Section 101(5), which provides for potential liability for both a company and its responsible officers when an offence is committed with the consent or connivance of a director, manager, secretary or other principal officer, or occurs as a result of that officer’s neglect.

Consequently, directors and senior officers of telecommunications companies, VAS aggregators and other intermediaries have been advised to strengthen their compliance procedures and ensure their platforms are not used to facilitate unlawful gaming activities.

The authority warned that after the 30-day deadline expires, it will issue the appropriate statutory notices and pursue available enforcement measures against companies found to be non-compliant.

## Gaming Industry Faces Increasing Regulatory Scrutiny

The latest directive comes amid broader developments in the taxation of gaming activities in Nigeria.

In January 2026, Nairametrics reported that the Nigerian Tax Act 2025 exempted gaming stakes from Value Added Tax (VAT), providing greater clarity on the tax treatment of wagers.

Section 185(m) of the Act lists money, stakes and securities, including interests in money or securities, among items exempt from VAT.

The provision means that amounts staked on games are exempt from VAT, requiring gaming operators to ensure their billing and tax systems reflect the applicable rules.

While the VAT exemption clarifies the tax treatment of gaming stakes, the Lagos directive focuses on licensing, gaming tax compliance and the responsibilities of telecom operators and technology intermediaries that provide access to betting and gaming services.

The development signals tighter regulatory oversight of the gaming industry in Lagos, with telecommunications companies and service providers facing increased pressure to verify the legal status of businesses operating through their platforms.

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