Lagos imposes 5% tax on betting winnings to boost revenue
Lagos State Government has introduced a new 5% withholding tax on gaming winnings. The measure applies to all net payouts from licensed betting platforms operating in the state. Officials say the move will improve tax compliance and transparency in the sector.
The tax takes effect immediately, with licensed operators now required to deduct 5% from all winnings at the point of payout. The deducted amount is then remitted directly to the Lagos State Internal Revenue Service (LIRS). Players receive their payouts after the tax is subtracted, and the deduction serves as a tax credit for them.
To comply with the new rules, gamblers must provide their National Identification Number (NIN) as part of Know Your Customer (KYC) procedures. The state has instructed all licensed gaming businesses to begin enforcing the deductions without delay. Authorities have not disclosed how many betting platforms are currently active in Lagos. The policy targets net winnings, meaning only profits—not total stakes—are subject to the 5% charge. Officials emphasise that the tax will help ensure greater accountability in the gaming industry.
The 5% withholding tax is now in force for all licensed gaming operators in Lagos. Players will see the deduction reflected in their payouts, while the state aims to boost revenue collection from the sector. The requirement for NIN verification remains a key part of the new system.
