The Lagos State Government has officially commenced the implementation of a 5% withholding tax (WHT) on Lottery , SportsBet, Coupon Winnings from licensed platforms operating within the state.
This move, announced by the Lagos State Lotteries and Gaming Authority (LSLGA), aligns with existing Nigerian tax laws and aims to enhance revenue collection, transparency, and compliance in the rapidly growing gaming sector.Under the new directive, issued by LSLGA CEO Bashir Are, licensed operators—both online and land-based—are required to automatically deduct 5% from players’ qualifying net winnings at the point of payout.
The withheld amount is remitted directly to the Lagos State Internal Revenue Service (LIRS). The policy applies immediately, with operators instructed to update their systems for seamless enforcement.
A key benefit for players is that the deducted 5% serves as a tax credit, which can be applied against any personal income tax liability on those winnings, avoiding double taxation. This structured approach simplifies compliance for individuals while ensuring the state captures revenue from one of its most dynamic industries.
Players and operators are advised to consult official LSLGA or LIRS channels for further details on application and compliance.
