Lagos Govt Enforces 5% Withholding Tax On Betting And Gaming Winnings

The Lagos State Government has started enforcing a 5% withholding tax (WHT) on gaming winnings.

In a newspaper advert on Thursday, Are Bashir, chief executive officer of the state gaming authority, said the move follows existing tax laws and regulations guiding the gaming industry.

The announcement explained that the tax will be charged on net winnings from licensed gaming companies operating in Lagos. The deduction will be made before winners receive their payouts.

“All licensed gaming operators in Lagos have been directed to comply immediately with the framework,” Bashir said.

“Under the new arrangement, 5% of qualifying gaming winnings will be automatically deducted before payment is made to players and remitted to the Lagos State Internal Revenue Service (LIRS) as the statutory tax authority.

“According to the State Government, the measure forms part of Lagos’ broader drive to strengthen tax compliance, transparency, and accountability in the rapidly expanding gaming sector.”

Bashir also noted that players will be required to provide their National Identification Number (NIN) to meet know-your-customer (KYC) rules.

Licensed operators are expected to handle the deductions and remit the funds in line with official guidelines.

“Players will receive their winnings net of the statutory deduction, with proper records maintained for transparency. The WHT deducted also serves as a tax credit to the player,” he added.

According to Bashir, all licensed gaming companies in Lagos have been formally directed to begin applying the five percent deduction immediately.

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