Exclusive: From Compliance to Innovation: Exploring the Dynamics of Nigeria’s Gaming Landscape with Bashir Are
Nigeria’s gaming and betting industry is a broad and multifaceted sector poised for growth. In this exclusive Q&A, Bashir Are, CEO of the Lagos State Lotteries & Gaming Authority, provides an in-depth look at the regulatory landscape, licensing processes, and emerging technologies shaping the industry.
With over 28 years of experience across public and private sectors, Bashir Are brings expertise in business transformation, fintech innovation, and policy development. He discusses opportunities for investors, the importance of compliance, and the strategies employed to foster responsible gambling while navigating challenges like illegal operators. Through his leadership, Lagos State continues to set the benchmark for gaming regulation in Nigeria and beyond.
iGaming AFRIKA: Could you provide an overview of the gaming and betting industry in Nigeria?
Bashir Are: Our country’s gaming and betting industry encompasses various categories both online and land based. The most prominent include sports betting, lotteries and B2B. Additionally, we have online casinos, virtual gaming, physical casinos, and scratch cards, among other products. These diverse offerings cater to a wide range of interests, making the sector both dynamic and competitive.
iGaming AFRIKA: If I were an investor looking to acquire a license in the betting and gaming sector, what would the process and associated costs look like?
Bashir Are: Let me provide an example specific to Lagos State, one of the key gaming hubs. A sports betting license costs 50 million Naira initially and requires an annual renewal fee of 15 million Naira.
The licensing process is relatively straightforward, provided all required documentation is in order. Typically, licenses are approved within 30 days. This efficiency makes Lagos an attractive destination for investors in the sector. The procedures for other categories, such as online casinos or lotteries, follow similar timelines and structures.
iGaming AFRIKA: Can foreign investors own 100 percent of a betting or gaming company in your country?
Bashir Are: No, foreign investors cannot own 100 percent of a betting or gaming company. Current regulations require 20 percent local ownership, meaning foreigners can own up to 80 percent. This policy ensures some level of local participation in the industry.
iGaming AFRIKA: What is the process for opening a bank account as a betting or gaming company in Nigeria?
Bashir Are: Once your company is registered, you can open a bank account within a week. The process is quite efficient. Additionally, there are business-to-business service providers, such as management consultants, who specialise in helping companies navigate this process seamlessly.
iGaming AFRIKA: What are the major challenges faced by regulators, operators, and players in your country’s gaming sector?
Bashir Are: One of the biggest challenges is the prevalence of illegal gaming operators. These entities operate without proper licenses and undermine the industry’s integrity. To address this, we employ measures such as internet restrictions, geo-fencing, and banning illegal advertisements within the country.
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Another challenge is ensuring compliance with Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) regulations. These issues require constant monitoring and collaboration with other agencies.
iGaming AFRIKA: If I wanted to acquire an online casino license, what would that process entail?
Bashir Are: The process is quite similar to that of obtaining a sports betting license. You need to be a registered business in Nigeria and meet the same local content requirement of 20%. For an online casino, the initial licensing fee is also 50 million Naira, with an annual renewal cost of 15 million Naira.
iGaming AFRIKA: Do operators need to have a land-based casino to run an online casino, or are these licenses separate?
Bashir Are: The licenses for land-based and online casinos are separate. However, operators looking to run both types of casinos may benefit from certain discounts when applying for combined licenses.
iGaming AFRIKA: What technological advancements is the board promoting for betting and gaming companies?
Bashir Are: Nigeria has made significant strides in technology, especially in fintech. For example, we leverage advanced Know Your Customer (KYC) systems to ensure that customers are adequately verified when entering the banking system.
Additionally, Nigeria benefits from extensive broadband infrastructure, supported by six Atlantic Sea cables, which provide strong internet penetration, particularly in major cities. This connectivity is crucial for the growth of online gaming platforms.
iGaming AFRIKA: How is taxation structured for operators and players in the betting and gaming industry?
Bashir Are: Taxation for operators is linked to their level of compliance. The tax rate ranges from 1 percent to 5 percent, depending on how compliant the operator is. For instance, operators with a compliance level of 85 percent to 90 percent enjoy lower tax rates, while those with compliance levels of around 50 percent are taxed at the higher end.
Players, on the other hand, are subject to a tax similar to income tax on their winnings. This ensures fairness and transparency in the industry.
Read the full interview in our digital magazine below:
