Nigeria’s Central Gaming Bill Sparks State vs Federal Clash

Debate continues to swirl around Nigeria’s Central Gaming Bill and its proposed regulatory influence on the country’s gambling sector.

Reports indicate that industry stakeholders are concerned the bill could weaken state level control over lotteries, prompting a formal petition advocating for its rejection.

The Federation of States Gaming Regulators of Nigeria (FSGRN) is leading the pushback, citing significant worries over how the creation of a Central Commission might impact fiscal federalism across the country.

The petition specifically seeks to prevent a central regulator from issuing licenses to operators, ensuring that this authority remains with the individual states.

Despite this, government proponents argue that because online gaming transcends state boundaries, oversight by a nationwide authority is necessary.

Preserving state revenue is another key concern, with critics fearing that a national commission could divert funds away from local coffers.

The petition also recommends that any federal regulatory powers should be limited solely to the Federal Capital Territory (FCT), which encompasses Abuja.

Opponents of the bill have labeled it unconstitutional, arguing that it conflicts with Nigeria’s federal system.

However, the legislation has already moved past its third reading in the National Assembly, making opposition efforts potentially less effective.

There remains some uncertainty in its progression, offering state regulators cautious hope that the bill could be delayed or amended with sufficient pressure.

Next, the Senate will review and vote on the bill, with the opportunity to propose adjustments before it becomes law.

Supporters claim the bill could help curb the rise of illicit gambling operations while streamlining the licensing process.

This controversy comes at a time when Nigeria’s gambling industry is experiencing strong growth.

Fueled by younger audiences and fintech integration the country’s iGaming sector is projected to grow by 16% and generate NGN 500 million in revenue by year end.

The Lagos State Lotteries and Gaming Authority highlights that this growth is closely linked to mobile technology adoption.

Leading operators like Betway, NairaBET, Bet9ja, 22Bet and 1xBet have all benefited from fintech partnerships, leveraging mobile wallets to enhance the gambling experience for users.