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The National Lottery Act has just been invalidated, giving regulatory powers to states over gambling business in Nigeria. Read more…

States have regained control of gambling in Nigeria, following Friday’s judgement by the Supreme Court. In a landmark decision, the Supreme Court of Nigeria nullified the National Lottery Act of 2005. That was after it had been in place for nearly two decades.

The court ruled that the National Assembly lacked the power to regulate lotteries and games of chance across the country. Instead, it stated that state governments have exclusive authority over lottery activities within their jurisdictions.

The ruling means that state governments are now free to manage and regulate lotteries within their borders. Prior to this, the National Lottery Act gave the Federal Government control over the lottery sector. The National Lottery Regulatory Commission (NLRC) supervised all operations. With the Act now nullified, the responsibility shifts to individual states, each of which can create its own regulations for lottery games.

The Supreme Court’s decision came after a long legal battle. In 2008, Lagos State and other states filed a suit challenging the Federal Government’s right to control the lottery sector. The apex court has ruled in favour of the states, effectively giving them full jurisdiction over lottery matters.

National Lottery Act: Implications for operators

The Supreme Court ruling could cause confusion for lottery operators. Without the National Lottery Act as a guiding framework, experts say operators now face uncertainty about how to operate legally. States will need to establish their own regulations, which could lead to different rules across the country. This will require lottery companies to navigate varying legal landscapes in each state, creating potential operational challenges.

Moreover, operators may need to revisit their contracts with the Federal Government. One observer particularly cited those related to revenue sharing and tax obligations. It remains unclear how the relationship between federal and state authorities will evolve in the wake of the ruling.

Revenue and Regulatory Challenges

The nullification of the National Lottery Act may also impact government revenue. Lottery has been an important source of income for both federal and state governments. With states now in control, there could be disruptions in the collection and distribution of lottery-related revenue, particularly in the short term.

According to analysts, there may also be challenges in ensuring that the industry remains properly regulated. The National Lottery Regulatory Commission no longer has authority, going by the ruling. “Without a new regulatory framework, the sector could see a rise in unregulated or illegal lottery operations,” he said.

By Usoh Udosen

Usoh Udosen is our General Assignment Reporter, with bias for the evolving world of Technology. He covers a wide range of topics, bringing depth and clarity to complex issues. With a commitment to journalistic integrity, Usoh connects with audiences through compelling narratives and informative reporting. His diverse experience and adaptability, spanning seven years, make him a valuable asset to our team.

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