The Lagos State Government has officially begun enforcing a five per cent withholding tax on gaming winnings from licensed gaming platforms operating within the state. The move is part of efforts to strengthen tax compliance and improve transparency in the rapidly expanding gaming sector.

The announcement was made by Are Bashir, Chief Executive Officer of the Lagos State Lotteries and Gaming Authority, in a public notice issued on Friday.

5% Withholding Tax Deducted at Point of Payout

According to the directive, the policy takes immediate effect and applies strictly to players’ net winnings. The five per cent withholding tax will be automatically deducted at the point of payout before winnings are credited to players’ accounts.

All licensed gaming operators in Lagos have been directed to comply immediately with the new tax framework, in line with existing Nigerian tax laws and regulatory guidelines governing the gaming industry.

The deducted tax will be remitted directly to the Lagos State Internal Revenue Service, the statutory authority responsible for tax collection in the state.

NIN Requirement and Tax Credit Benefit

As part of the updated compliance measures, players are now required to provide their National Identification Number (NIN) in accordance with Know Your Customer (KYC) regulations. This is aimed at enhancing accountability and ensuring proper documentation of gaming transactions.

Bashir clarified that all deductions and remittances will be handled strictly by licensed operators, with proper records maintained for transparency. He also noted that the withholding tax deducted from winnings will serve as a tax credit for players.

The Lagos government said the policy aligns both operators and players with their existing tax obligations while reinforcing effective regulation of the state’s booming gaming industry.