In 2025, Nigeria’s online gambling sector has hit an estimated ₦5.6 trillion ($3.63 billion), sparking widespread concern over the growing obsession with quick money. This issue is particularly acute among the youth, who find themselves caught in a cycle of economic hardship and the alluring promise of instant wealth. The rapid growth of digital betting platforms, bolstered by sports wagering apps, virtual gaming sites, and 24-hour online casinos, has significantly altered the entertainment and financial landscape in Nigeria. However, this development has also exposed societal vulnerabilities that experts warn could have long-lasting effects on an entire generation.
This situation has led to a call for a revised national gambling strategy, with regulatory bodies reconsidering the Supreme Court’s previous ruling. On November 22, 2024, Nigeria’s Supreme Court delivered a pivotal decision that nullified the National Lottery Act. This ruling removed the National Lottery Regulatory Commission’s national authority, limiting its jurisdiction to only the Federal Capital Territory, Abuja. The unanimous decision by the seven-member panel concluded that gaming regulation is a matter for states, not the federal government, putting an end to a legal dispute originating in 2008 when Lagos State and 22 other states contested the National Assembly’s power to legislate on lotteries and games of chance.
As the Supreme Court declared, “Lotteries, betting, gaming, and other games of chance are residual matters falling within the exclusive legislative competence of the states, except in the Federal Capital Territory.” This statement was highlighted by Lagos Attorney-General Lawal Pedro. Consequently, operators are now required to obtain licenses from individual states, a change that has fragmented oversight and created operational challenges for gambling companies that previously operated under a unified federal framework. This ruling has also sparked legal conflicts, with Lagos State initiating contempt proceedings against the National Assembly for attempting to pass a Central Gaming Bill that mirrors the provisions of the nullified law.
Despite the Supreme Court’s clear ruling, the National Assembly has progressed with a controversial Central Gaming Bill, aiming to reclaim federal oversight of online and remote gaming activities. The bill has passed its third reading in the House of Representatives and is awaiting Senate approval. It proposes the establishment of a National Gaming Commission with regulatory authority across the country. However, this move has met strong resistance at the state level.
The Federation of State Gaming Regulators of Nigeria, which includes regulators from over 20 states, has criticized the proposed law as “a repackaged version of the now-nullified National Lottery Act 2005” and urged the National Assembly to withdraw it. Lagos State has taken the issue to the Supreme Court again, seeking to initiate contempt proceedings against the National Assembly for defying judicial authority.
This controversy has led to divergent positions within Nigeria’s federal structure. Lagos Attorney-General Lawal Pedro expressed the core issue, noting how firms and lawmakers “look for regulatory relief by providing a close-enough function to something that’s highly regulated, and then they can operate under less regulation.” The challenge for state regulators is to determine when federal arguments lose credibility.
Obinna Akpuchukwu, a gaming law expert and senior partner at Allen & Marylebone, viewed the issue from a practical standpoint rather than an ideological one. He argued that the Central Gaming Bill, if enacted, would be unconstitutional. He stated, “The argument of the proponents of the bill to the effect that the bill seeks to regulate online/remote gaming activities in Nigeria and that the repealed National Lottery Act did not provide for the regulation of online/remote gaming activities is, with respect, unfounded.” He emphasized that whether a betting transaction happens in a physical shop or through a mobile app, the constitutional question remains the same – gaming is a state matter regardless of the technology used.
The ₦5.6 trillion market may be driven by economic desperation, as industry data indicates that nearly 60 million Nigerians place bets daily. With the new proposal, operators serving millions of users across 36 states now face the challenge of obtaining separate licenses from each state, each with its unique regulatory framework – or potentially no framework at all in states lacking established gaming authorities. This could lead to significant social change among Nigerian youth, who are increasingly reliant on betting apps.
On the other side, industry leaders argue that major gambling platforms like Bet9ja, SportyBet, 1xBet, Betway, and NairaBet have developed substantial operations that employ thousands of people and contribute to Nigeria’s economy, tax revenue, and investment capital. However, even industry representatives acknowledge the urgent need for regulatory clarity. The current fragmented landscape, with the potential for 36 separate licensing systems, presents operational challenges that could force smaller operators out of the market while leaving gaps in consumer protection.
The question of who gets to regulate such a borderless industry remains critical as the market continues to expand. Industry projections suggest revenues could surpass ₦6 trillion in 2025 as smartphone penetration increases and mobile payment systems become more sophisticated. Whether this growth will happen under coordinated state oversight, renewed federal authority, or continued regulatory fragmentation will influence not only the gambling industry’s future but also the economic and mental health outcomes for millions of young Nigerians, who view betting as one of the few viable paths to financial stability.
The National Assembly’s Central Gaming Bill could force a resolution on this issue sooner rather than later. If it passes despite state opposition, Nigeria’s Supreme Court might be called upon once again to address the same fundamental questions about regulatory jurisdiction over the gambling industry.
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