Navigating Nigeria’s Legal Landscape in Gaming
Olajumoke Odudimu, Company Secretary, Velex Advisory moderating the panel session Responsible Gaming: Player Protection in Nairobi, Kenya.
The gaming industry in Nigeria has experienced remarkable growth in recent years, mirroring the expansion across the African continent. This growth, coupled with the improving ease of doing business in Nigeria, has attracted significant interest and investment from both local and international gaming operators.
However, this rapid expansion necessitates a robust regulatory framework designed to ensure fair play, protect consumers, curb illegal activities, and generate revenue for the government. A key challenge for both local and foreign operators is navigating the complex regulatory landscape and ensuring full comp liance with regulations. Some gaming companies have faced setbacks or exited the market due to a lack of understanding of the Nigerian regulatory environment.
Therefore, a thorough understanding of the regulatory frameworks governing the gaming industry is essential to mitigate compliance risks and ensure adherence to the law. Gaming regulations are designed to protect players, prevent fraud, promote responsible gaming, and address advertising and marketing practices. These regulations also provide guidelines to prevent misleading promotions, discourage unlicensed activities, and enforce compliance, including taking action against illegal operators.
Velex Advisory offers comprehensive compliance packages specifically designed for gaming and technology companies. Our expert legal guidance is designed to support gaming operators, enabling them to thrive and achieve unhindered business growth in Nigeria.
Recent developments, such as the Supreme Court judgment in the case of the Attorney General of Lagos State and Ors v Attorney General of the Federation and Ors, and the proposed introduction of withholding tax on winnings, underscore the dynamic nature of the industry. It is, therefore, crucial to stay informed about the evolving regulations governing the gaming sector.
As the industry continues to evolve, regulations are continually established and amended to address emerging trends and challenges.
Consequently, gaming companies must prioritise the expertise of a strong legal team to manage and support their regulatory and compliance functions effectively. Ensuring that your legal team is well-equipped and informed is critical for navigating the complexities of this ever-changing industry.
There are about 13 key regulations governing the gaming industry in Nigeria. These include the Companies and Allied Matters Act, 2020, Lagos State Lotteries and Gaming Authority Law, 2021 (as amended) and other State Gaming Regulatory laws in Nigeria, Nigeria Data Protection Act 2023, Economic and Financial Crimes Commission (Anti-Money Laundering, Combating the Financing of Terrorism and Countering the Proliferation Financing of Weapons of Mass Destruction for Designated Non-Financial Businesses and Professions and Other Related
Matters) Regulations, 2024, Money Laundering (Prevention and Prohibition) Act 2022 and Terrorism (Prevention and Prohibition) Act 2022.
Other related laws are Advertising Regulatory Council of Nigeria Act, 2022, Federal Competition and Consumer Protection Act, 2018, Finance Act, 2023, Deduction of Tax at Source (Withholding) Regulations, 2024, Other Federal and State Taxation Acts and Laws in Nigeria, Nigeria Investment Promotion Commission Act, N117 LFN 2004—for foreign investment and National Office for Technology Acquisition and Promotion Act, N62 LFN 2004.
The industry is governed by a dynamic set of regulations. Some are consistently applied, while others are contingent on the specific activities undertaken.
With its deep understanding and experience in the Nigerian gaming market and across Africa, Velex Advisory is a reliable partner for gaming operators in Nigeria. The company’s commitment to excellence and in-depth understanding of the industry makes it a trusted business advisor for operators seeking to succeed in this dynamic market.
