Introduction
In our earlier article[1], we highlighted the regulatory tussle between the Federal Government and State Governments as it relates to the lottery and sports betting industry and the problems this lack of administrative clarity was causing to stakeholders. To recap, while the Federal Government regulated lottery activities through the National Lottery Act of 2005, various state governments also exercised regulatory powers over lottery and sports betting under their various local legislations.
In Lagos the conflict between the Lagos Lotteries Law, 2004 (now replaced by the Lagos State Lotteries and Gaming Authority Law, 2021) and the National Lottery Act, 2005 brought unpleasant economic and legal consequences, as compliance requirements were on two fronts.
On 22nd November 2024, the Supreme Court laid the regulatory dispute hopefully, to rest when it delivered judgment in Suit No. SC/1/2008 between Attorney General of Lagos State & Ors v. Attorney General of the Federation. The Supreme Court nullified violating provisions of the National Lottery Act, and held that apart from the FCT, the National Lottery Act should no longer be enforced across the states of the Federation.
The Supreme Court further held that having regard to the provisions of Sections 4(2) & 4(3), 4(4)(a), 4(4)(b), 4(7)(a), 4(7)(c) and part 2 of the Second Schedule to the Nigerian Constitution, the National Assembly lacks the powers to make any legislation for the control and regulation of lottery in Nigeria, as such powers lie exclusively within the purview of the State Governments.
It is now clear that the right and responsibility for legislating and regulating lotteries and gaming activities rests exclusively with state governments within their jurisdictions, while the Federal Government’s authority is confined to the FCT.
While some states, like Lagos State, have dedicated agencies to oversee lotteries, the majority still regulate lottery and gaming activities through their internal revenue services. However, it is crucial for states to establish specialized agencies designed to address the unique challenges and complexities of sports betting.
Such agencies would be better equipped to tackle issues like responsible gambling, consumer protection, and enforcement of industry standards, ensuring a more effective and targeted approach to regulation.
State Houses of Assembly must enact comprehensive laws clearly spelling out lottery operator licences and procedural requirements for obtaining same. However, the focus must not be narrowed to the fiscal gains that would accrue to states by way of licencing fees and permits, but protection of vulnerable persons and the public must be given paramount consideration in state lottery laws.
