Supreme Court Ruling Fuels State-Level Gambling Regulation
Eighteen months after Nigeria’s Supreme Court handed states the reins over gambling regulation, the race is on to establish clear legal frameworks. In November 2024, the court ruled that the regulation of lotteries and other games of chance should fall under state jurisdiction, voiding the National Lottery Act. This verdict ended a 16-year-old legal battle initiated by Lagos state over regulatory control. Now, states like Lagos, Delta, and Imo, which already had relevant laws, are continuing without federal oversight. And meanwhile, states without existing laws are scrambling to catch up. “The Supreme Court’s decision was constitutionally seismic,” remarked Adewumi Salami, legal director at DLA Piper Africa. And he’s right. A number of states had pre-existing frameworks—Lagos and a few others were ready to pivot immediately.
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Diverse State Reactions to New Regulatory Powers
Following the court’s ruling, states such as Osun quickly acted, passing new legislation to oversee gambling activities. Osun established its own Lotteries and Gaming Board by November 2024. Similarly, Anambra is in the process of advancing its own Gaming Bills to regulate the industry effectively. The Supreme Court ruling effectively categorized gambling as a “residual” matter, meaning it doesn’t belong to the federal government’s exclusive list for regulation. This list contains issues like defense and banking. Hence, the power has been distributed to individual states.
Nigeria’s Flourishing Gambling Market
According to H2 Gambling Capital, Nigeria saw a gross win of nearly $1.6 billion in 2025 from gambling activities. And football betting takes the lion’s share, driven largely by the English Premier League and the UEFA Champions League. But online casinos are starting to gain traction, an evolution noted by analysts at Premium Times, who see cheaper mobile internet and better payment systems as catalysts for this shift. “Online casino products are now appearing alongside sports betting apps,” the report noted, as operators look to diversify their offerings. Yet, the burgeoning online segment introduces new regulatory challenges, with jurisdictions lagging in establishing broad laws.
Federation of State Gaming Regulators of Nigeria (FSGRN) Steps In
In a bid to streamline regulation, about 22 states have formed the Federation of State Gaming Regulators of Nigeria (FSGRN). This body launched a Subnational Reciprocity Licensing Framework, allowing operators to obtain a Universal Reciprocity Certificate (URC) valid across member states. For now, this framework applies only to online gaming operations. Still, yet, the FSGRN has waived transitional license fees for operators moving from the obsolete National Lottery Regulatory Commission framework. “The FSGRN’s centralized approach has greatly reduced the potential 36-state licensing nightmare,” Salami observed. But offline gaming still faces fragmented state laws.
Legal Complexities and Religious Considerations
“Despite progress, the absence of gambling laws in Nigeria’s Muslim-majority north creates legal grey zones,” noted Salami. This poses compliance challenges for operators aiming for nationwide operations. Pew Research Centre data indicates that as of November 2025, Muslims made up 56.1% of Nigeria’s population. The regulatory environment remains inconsistent across regions due to religious considerations. And while the FSGRN’s reciprocity framework helps foster consistency in online gaming, it doesn’t replace state legislation or bind non-member states. Operators are urged to perform thorough due diligence before entering new markets.
Online Gambling: The Unfinished Story
While the Supreme Court settled the offline lottery issue, online gambling remains in murky legal waters. As Salami noted, the legality of cross-border gaming remains nuanced. In many states, operators engaging residents are subject to local regulation, but gaps persist. “The FSGRN’s URC framework is practical,” Salami added, “but without statutory backing in non-member states, achieving true national reach is complex.”
The coming months will test these frameworks. As states refine their laws, we may see further consolidation of both innovation and regulation. Regulatory bodies are expected to hold more discussions on these topics in the upcoming quarters.
Garry Sputnim is a seasoned journalist and storyteller with over a decade of experience in the trenches of global news. With a keen eye for uncovering stories that resonate, Alex has reported from over 30 countries, bringing light to untold narratives and the human faces behind the headlines. Specializing in investigative journalism, Garry has a knack for technology and social justice issues, weaving compelling narratives that bridge tech and humanity. Outside the newsroom, Garry is an avid rock climber and podcast host, exploring stories of resilience and innovation.
