The Lagos State Government has commenced enforcement of a five per cent withholding tax on gaming winnings from licensed operators across the state.
The Chief Executive Officer of the Lagos State Lotteries and Gaming Authority, Are Bashir, announced the development in a public notice issued on Friday.
According to the notice, the policy takes immediate effect and applies to players’ net winnings, with the tax to be deducted at the point of payout. All licensed gaming operators have been directed to comply without delay, in line with existing Nigerian tax laws and regulatory guidelines governing the gaming industry.
Under the new framework, the five per cent deduction will be automatically withheld before winnings are paid out and subsequently remitted to the Lagos State Internal Revenue Service, the statutory tax authority.
Bashir said the measure forms part of the state’s broader efforts to enhance tax compliance, transparency and accountability in the rapidly expanding gaming sector.
As part of the implementation process, players will be required to provide their National Identification Number (NIN) in accordance with Know Your Customer (KYC) regulations.
He clarified that all deductions and remittances will be handled strictly by licensed gaming operators, ensuring that players receive their winnings net of the statutory deduction. Proper documentation, he added, will be maintained to guarantee transparency and regulatory oversight.
The CEO further noted that the withheld amount will serve as a tax credit for players.
“All licensed gaming operators in Lagos State have now been formally directed to commence the deductions with immediate effect,” the notice stated.
Bashir reiterated that the policy is designed to strengthen regulation of the gaming industry while ensuring that both operators and players meet their tax obligations within the state.
