The Lagos State Government has commenced enforcement of a five per cent withholding tax on gaming winnings from licensed operators in the state.
Chief Executive Officer of the Lagos State Lotteries and Gaming Authority, Are Bashir, announced the policy in a public notice on Friday, stating that the deduction applies to players’ net winnings and will be withheld at the point of payout.
“All licensed gaming operators in Lagos State have now been formally directed to commence the deductions with immediate effect,” Bashir said.
Policy Details
- The 5% tax will be automatically deducted before winnings are paid to players.
- Operators must remit the withheld amount to the Lagos State Internal Revenue Service (LIRS).
- Players are required to provide their National Identification Number (NIN) in line with Know Your Customer (KYC) regulations.
- The tax deducted will serve as a tax credit to the player.
Bashir explained that the measure is part of Lagos’ broader drive to strengthen tax compliance, transparency, and accountability in the fast-growing gaming sector. He emphasised that deductions and remittances will be handled strictly by licensed operators, with proper records maintained to ensure transparency.
The initiative aligns gaming operators and players with existing tax obligations while reinforcing effective regulation of the industry, the notice further noted.
