Nigeria States Take Control of Gambling Regulation After Supreme Court Ruling

Nigeria Supreme Court Ruling Shifts Gambling Oversight to States – Patchwork Regulation and Religious Restrictions Create Compliance Challenges

Key Takeaways

• In November 2024, Nigeria’s Supreme Court ruled that lotteries and games of chance fall under state, not federal, authority.
• At least 10 states already had gambling laws in place, while others are still drafting or clarifying their frameworks.
• About 22 states formed the Federation of State Gaming Regulators of Nigeria and introduced a Universal Reciprocity Certificate for online operators.
• Several northern states following Sharia law prohibit lotteries and games of chance, creating jurisdictional gaps.
• Nigeria’s gambling market generated nearly $1.6 billion in gross win in 2025, with football betting as the dominant segment.

Supreme Court Decision Ends Federal Control Over Lotteries

In November 2024, Nigeria’s Supreme Court voided the National Lottery Act and ruled that the regulation of lotteries and games of chance is a residual matter under the country’s constitution. As a result, legislative authority now rests with Nigeria’s 36 state governments rather than the federal National Assembly.

The case had been brought by the Lagos state government 16 years earlier, seeking clarification on which level of government had the constitutional power to regulate gambling. A seven member panel of justices concluded that lotteries are not included in the federal government’s exclusive legislative list of 68 items, which covers areas such as defence, security, banking and the creation of new states.

The ruling resolved a long running jurisdictional dispute but introduced a new regulatory reality. Each state is now responsible for establishing and enforcing its own legal framework for gambling activity.

States Move at Different Speeds to Establish Legal Frameworks

Before the Supreme Court decision, at least 10 states already maintained their own regulatory structures. These include Lagos, Akwa Ibom, Anambra, Cross River, Delta, Imo, Ogun, Ondo, Oyo and Rivers. Lagos, through the Lagos State Lotteries and Gaming Authority, was positioned to immediately exercise exclusive oversight after the ruling.

Other states have acted since the judgment. Osun state passed a Lotteries and Gaming Bill in November 2024, establishing the Osun State Lotteries and Gaming Board. Anambra also tabled a gaming bill following the decision.

However, legislative progress is uneven. According to legal practitioners cited in the source material, Nigeria’s 36 states can be grouped into several categories. A large group, including Lagos, Delta, Rivers and others, have gambling laws in place. Five states – Bauchi, Borno, Jigawa, Yobe and Katsina – have unclear legal frameworks. The Federal Capital Territory around Abuja does not have a dedicated gambling statute, although it operates the FCT Lottery Regulatory Office, which requires operators to obtain a licence before commencing activity.

Religious Restrictions in Northern States Create Grey Areas

Several northern states that apply Sharia law prohibit lotteries and games of chance. These include Adamawa, Ebonyi, Gombe, Kano, Kebbi, Osun, Sokoto, Taraba and Zamfara. In Kano, enforcement practices create practical restrictions despite the existence of revenue related provisions.

This legal landscape reflects Nigeria’s religious demographics. According to Pew Research Centre data cited in the source, Muslims accounted for 56.1 percent of the population as of November 2025, while Christians represented 43.4 percent. Between 2010 and 2020, the Muslim population increased by 32 percent to 120 million, while the Christian population grew by 25 percent to 93 million.

For operators seeking nationwide coverage, the absence of clear gambling legislation in certain states, particularly in the north, creates compliance risks. The Supreme Court ruling addressed the allocation of authority over lotteries but did not harmonise the substance of state laws.

Federation of State Gaming Regulators Introduces Reciprocity Model

To address the risk of fragmented oversight, about 22 states established the Federation of State Gaming Regulators of Nigeria. In May 2025, the body introduced a Subnational Reciprocity Licensing Framework.

Under this system, operators can apply for a single licence known as the Universal Reciprocity Certificate. The certificate is valid across member states and is currently limited to online gaming operations. The federation also waived 2025 licence fees for operators transitioning from the former National Lottery Regulatory Commission regime to the new state based framework.

According to legal commentary in the source material, the reciprocity model reduces the risk of having to obtain up to 36 separate licences. However, it does not replace state legislation and does not bind states that are not members of the federation. Offline gaming operations remain subject to separate state level requirements.

Market Size and Shifting Product Mix

Nigeria’s gambling industry generated nearly $1.6 billion in gross win in 2025, according to H2 Gambling Capital data cited in the report. Football betting accounts for the majority of sports wagering activity, driven by interest in the English Premier League, the UEFA Champions League and selected domestic matches.

Brands such as Bet9ja and SportyBet have built large user bases through mobile applications and advertising. At the same time, online casino products are gaining visibility. As mobile internet access becomes cheaper and payment systems improve, operators increasingly integrate slots, live dealer games and crash style products alongside traditional sportsbook offerings.

This product expansion adds another layer of regulatory complexity, as states must decide how to classify and oversee different types of online gaming under their respective laws.

Unresolved Questions Around Online and Cross Border Play

While the Supreme Court decision clarified that offline lotteries fall under state jurisdiction, the constitutional treatment of online and cross border gaming remains less defined.

According to the legal analysis cited, a scenario in which a player located in Kano accesses a platform licensed in Lagos illustrates the complexity. Each state can arguably claim authority over operators targeting its residents. The Federation’s reciprocity framework provides a practical coordination mechanism for member states, but it does not have statutory force in non member jurisdictions.

For operators and platform users, this means that the regulatory status of an online gambling service may vary depending on the player’s location within Nigeria.

Our Assessment

Nigeria’s 2024 Supreme Court ruling has fundamentally shifted gambling regulation from the federal to the state level. While several states had pre existing frameworks and others have moved to legislate, the overall picture remains fragmented. The creation of the Federation of State Gaming Regulators and the Universal Reciprocity Certificate has introduced a coordinated licensing option for online gaming, but participation is not nationwide and offline operations remain subject to separate rules. Religious prohibitions in parts of the country and unresolved questions around cross border online play continue to shape the compliance landscape in one of Africa’s largest gambling markets.