Legal Betting in Nigeria

Introduction

Betting is an integral part of Nigeria’s entertainment and economic landscape driven by its young population, advances in technology and a love of sport. The legal situation of betting in Nigeria is a bit of complex situation due to the interplay of federal and state laws with recent judgments of the courts changing the scope of the regulatory regime. We look at legalities, betting companies, supermarket bookies, the types of bet available and the wider betting environment – both culturally and economically in terms of the size of the industry.

Laws that Regulate Gambling

Previously, the legal framework of gambling at the national level was provided by the National Lottery Act of 2005 and by the National Lottery Regulations of 2007, which authorised the NLRC to issue licenses. Finally, on 22 November 2024, the Nigerian Supreme Court declared the National Lottery Act invalid, and left the control of private lotteries in the hands of the state governments. Some states, including Lagos, Ogun and Anambra, have set up boards such as the Lagos State Lottery Board which is responsible for issuing licenses and monitoring adherence.

In Nigeria, the law differentiates between games requiring skill, which are legal, and games of chance, which have restrictions. The law does not specify however that sports betting is a game of skill, but categorizes it equally as a game of chance. The majority of casino games and certain types of lottery are considered as games of chance and prohibited save in certain places. State licenses are required for online betting, but there are holes in regulation that are the subject of continued debate to further define digital platform oversight.

Some Popular Betting Brands and How to Find an Offline Store

The top betting companies in Nigeria and the country’s most successful betting companies – the fastest growing companies are Bet9ja, Nairabet, SportyBet, and Betway. Bet9ja is one of the popular betting companies offering betting in Nigeria. SportyBet has competitive odds and Betway - being a global brand - also uses its international status. Nairabet, an early entrant, is particularly popular for its localized services.

In the cities of Lagos, Abuja and Port Harcourt, gambling shops are prevalent. These outlets, which are typically braded by companies such as Bet9ja, offer brick-and-mortar locations for placing bets, watching live matches and socialising. With computers, televisions and seating, they serve bettors who lack reliable internet and encourage a sense of community.

Types of Bets in Nigeria

Sports betting, particularly on football, dominates Nigeria’s market, reflecting the country’s passion for local and international leagues. Common bet types include:

• Match Outcome (1X2): Predicting whether the home team wins (1), the match draws (X), or the away team wins (2).
• Over/Under Goals: Wagering on whether total goals exceed or fall below a set number.
• Both Teams to Score: Betting on whether both teams score at least once.
• Accumulator Bets: Combining multiple selections into one bet for higher payouts, requiring all predictions to be correct.
• Virtual Sports Bets: Wagering on simulated sports events, valued for quick outcomes.

Non-sports bets, such as those on political or entertainment events, are less common and subject to stricter oversight to comply with anti-gambling laws.

Key Information About Nigeria’s Betting Sphere

• Licensed operators must display state or NLRC license details.
• Minimum betting age is 18, verified at physical outlets.
• Winnings are subject to a federal 10% withholding tax, with possible state levies.
• Mobile apps account for over 70% of online wagers.
• Responsible gambling measures include emerging self-exclusion programs.

Importance of Wagering in Culture

Gambling in Nigeria is closely associated with sports fanaticism, including football, as fans bet to increase their involvement in English Premier League and Nigerian Professional Football League. Betting shops are the social spaces in which people talk about matches and compare strategies, making a community out of it. This cultural acceptability, particularly in young men, has led to fears of addiction and financial stress among a generation with among the highest rates of youth unemployment.

Economic and Market Effects

There is a lot of money to be made in the betting industry which employees people in retail, tech and marketing. Smartphone proliferation and cheap data have accelerated online betting growth, and platforms have said that user numbers are growing rapidly. But unlicensed operators and lax consumer protections are challenging. The move to state regulation could enhance oversight, but runs the risk of inconsistent standards state-to-state.

Regulatory Hurdles and Local Differences

Even after the Supreme Court decision, regulatory uncertainty continues, especially for online platforms. Unlicensed operators are taking advantage of loopholes, and causing calls for tougher licensing and advertising requirements. Sharia law has forced the closure of betting shops in northern states such as Kano, underscoring regional disparities. Standardizing state regulations is still a major hurdle to protecting the consumer.

Useful Data on Nigeria’s Betting Market

Aspect	Details
Market Size	Approximately ₦650 billion annually (2024)
Dominant Sport	Football (85% of bets)
Online Betting Share	75% of total wagers
Number of Licensed Operators	Approximately 50 (state-licensed)
Average Bet Size	₦500–₦2,000 per wager

Conclusion

Nigeria has a very turbulent legal structure as far as betting is concerned, these days, state governments actually regulate the industry, and that is as a result of a supreme court decision of November 2024. Dominant operators include Bet9ja and SportyBet and the market is hooked on football betting which also benefits from well-established offline shops and a wide variety of bet types. Although the industry is culturally important and economically important, it has a number of problems, both due to the inconsistency of regulations and due to issues of addiction. Empowering state-level regulation will be essential in keeping growth and consumer interests in check.