Supreme Court Judgment: Lull at NLRC Headquarters as Lottery Operations Continue Unhindered Nationwide 

Several weeks after the Supreme Court restricted its operations to the FCT, the National Lottery Regulatory Commission has yet to issue an official position on the ruling. Nseobong Okon-Ekong reports, however, that lottery business continues nationwide without any hindrance 

Lottery business continues unhindered all over the country without the least disruption, signifying that the recent Supreme Court judgment on November 22 in the case of the Attorney General of Lagos State vs the Attorney General of the Federation and Others that nullified the National Lottery Act, which established the National Lottery Regulatory Commission (NLRC) to regulate the lottery industry in Nigeria is being complied with.

The matter had been in court for about 16 years, since 2008, when the Lagos State Government sought a judicial declaration to affirm its constitutional right to be the sole administrator of lottery operations within its jurisdiction based on the provisions of sections 4 (2), (3) and 4 (7) (a) and (c) of the 1999 Constitution as amended. Its contention was that the constitution vests states’ assemblies with powers to legislate over matters outside the exclusive list. Because lottery is a residual matter, the Federal Government could not make laws to administer its operations all over Nigeria.

It is instructive that all seven Supreme Court judges unanimously agreed with Lagos’s position that the Federal Government could only regulate lottery business in the FCT and not in states. 

During the long years of the judicial process that climaxed with the Supreme Court judgment, different parties obtained favourable judgments for themselves from various courts. One of them is the popular NECA case in which the Nigeria Employers Consultative Association got the Court of Appeal to uphold the validity of the National Lottery Act.  

In another matter, the Association of Nigeria Bookmakers, the umbrella body of the sports betting trade group, initiated a lawsuit to determine the legitimate regulators of gaming businesses because they complained about paying multiple taxes and licensing fees to states and the Federal Government.

In suit no. FHC/L/CS/15992020 filed before Hon. Justice I.N Oweibo of the Lagos High Court, the judge declared that the Federal Government should be the sole regulator of the gaming business in the country as the constitution is clear on the position of lottery in the exclusive list and the National Assembly can legislate on lottery matters

There is an instance where Western Lotto filed an originating summons before the Federal High Court challenging the power of the Lagos State Lotteries Board to issue licenses on lotteries and other gaming activities within the territory of Lagos State. Justice M.B. Idris ruled in favour of Western Lotto, but Lagos State expressed dissatisfaction, and the case went before the Court of Appeal in suit no: CA/L/809/18.

Applauding the recent Supreme Court judgement, the Lagos Commissioner for Information and Strategy, Gbenga Omotosho, said the judgment reaffirmed the constitutional authority of state governments to regulate lotteries and gaming activities within their jurisdictions. He added that the judgment is a historic victory for the rule of law, federalism, and the constitutional rights of states, stressing that the Supreme Court’s decision is a significant affirmation that the regulation of lotteries and gaming is a residual matter, falling squarely within the purview of state governments.

“This judgment reinforces the principles of true federalism, empowering states to chart their path for effective regulation. The Lagos State Lotteries and Gaming Authority remains the sole regulatory body for lotteries and gaming in Lagos State,” said Omotosho. “It will continue to ensure that gaming activities are conducted transparently, responsibly.”

The Federation of State Gaming Regulators of Nigeria (FSGRN) has described the Supreme Court ruling as a “watershed” moment for gaming regulation.

Bashir Are, CEO of Lagos State Lotteries and Gaming Authority (LSLGA) and chairman of FSGRN, said the ruling will unlock more economic opportunities for the sector.

“The decision provides a fertile ground for innovation, responsible gambling and job creation in gaming technology, game development and entertainment,” he said. 

Olajide Boladuro, director general of the Oyo State Gaming Board, added that the judgment had empowered states to develop gambling regulations that suit their unique cultures and economic landscapes.

Prince Imuomuen, representing the regulator from Edo State encouraged the parties to increase inter-state collaboration on gambling matters.

“Through synergies states can ensure operators have clear guidelines and residents are better protected. FSGRN is committed to fostering partnerships that uphold the highest standards,” Imuomuen said.

Akinroluye Olajide, chairman of the Ondo State Lotteries Regulatory Commission, agreed. He also said inclusive engagement with operators will be key in forming future regulations.

“This ruling enables us to sanitise the industry by integrating willing operators into a legitimate framework,” Olajide stressed. “A collaborative approach ensures a sustainable and thriving gaming sector for all.”

The Abuja headquarters of the NLRC was devoid of its usual boisterousness as staff moved about listlessly. Some of them were in small groups discussing the implications of the Supreme Court judgement on their future. The scenario was the same at its sister agency, the National Lottery Trust Fund (NLTF). 

Gaming Week was told Mr. Lanre Gbajabiamila, NLRC’s Director-General, was not in the office. He did not respond to messages sent to his phone number to get the agency’s official stand on the judgment. However, Mr. Magnus Ekechukwu, Head of Public Affairs of the NLRC, stated in a WhatsApp chat that the commission does not have a certified true copy of the Supreme Court judgment.

The Association of Nigeria Bookmakers had previously said it did not have the CTC. Upon our latest probe to know the group’s official stance, mum was the answer from its officials.