Reps Move To Regulate Gaming Operations, Boost Revenue

The House of Representatives on Thursday, passed for the second reading, a bill seeking to create a comprehensive and harmonised regulatory framework for the operation and business of all forms of online and remote gaming that transcend state boundaries and extend beyond Nigeria’s borders.

Sponsored by the Deputy Speaker, Hon. Benjamin Kalu and six other lawmakers, the proposed legislation also seeks to enhance revenue generation for the federation and for related matters.

Leading the debate on its general principles, Hon. Bamidele Salam said the bill which seeks to repeal the National Lottery Act No. 7 of 2005 and the National Lottery (Amendment) Act No. 6 of 2017 to enact the Central Gaming Bill, aligns with the recent decision of the Supreme Court on the conflict of jurisdiction between the Federal Government and the states regarding the regulation of gaming.

Rep Salam recalled that the Court clarified that gaming, including lotteries and betting, falls within the legislative competence of states except where it pertains to matters within the exclusive jurisdiction of the Federal Government, such as cross-border or international gaming operations.

The lawmaker said the ruling underscores the need for a comprehensive legal framework that respects the constitutional division of powers, while addressing the realities of modern gaming, particularly online and remote gaming, which often transcend state boundaries.

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He noted that the bill provides a clear legal foundation for the conduct of gaming activities within the Federal Capital Territory (FCT), where the Federal Government retains regulatory authority.

Salam also said the bill aims to improve revenue collection from gaming activities by streamlining taxation, licensing fees, and compliance measures while ensuring transparency, accountability in revenue remittance, and as well promote responsible gaming, prevent gambling addiction, and protect consumers from fraudulent practices.
He said, “This will ensure clarity in regulatory oversight, prevent jurisdictional conflicts, and promote a well-structured gaming industry that aligns with global best practices. (b) To Regulate Gaming Activities in the Federal Capital Territory (FCT): In line with the recent Supreme Court decision, the bill provides a clear legal basis for the conduct and regulation of gaming within the Federal Capital Territory, where the Federal Government has exclusive jurisdiction. This will ensure proper oversight, licensing, and compliance mechanisms for gaming operators within the FCT.

“The Central Gaming Bill seeks to establish a comprehensive legal and institutional framework for the regulation of all forms of online and remote gaming in Nigeria. Part I establishes the Central Gaming Commission and its Governing Board (Clauses 1–6), detailing the composition, tenure, and emoluments of board members, as well as the powers of the Board.

“Part II (Clause 7) defines the functions and powers of the Commission, which include licensing, monitoring, enforcement, and the promotion of responsible gaming. Part III (Clauses 8–12) provides for the appointment of the Director-General, Secretary, and other staff, along with conditions of service and retirement benefits to ensure operational efficiency.

“Part IV (Clauses 13–20) contains financial provisions, specifying the funding sources of the Commission, expenditure plans, revenue-sharing mechanisms between the Commission and state regulators, and accountability measures such as annual reports and auditing.

“Part V (Clauses 21–48) regulates online and remote gaming operations, establishing the licensing framework, penalties for unlicensed operations, and requirements for financial reporting. It also mandates the creation of an online gaming central monitoring system and a National Computer Emergency Response Team Platform for cybersecurity.”