Established in 2005, the National Lottery Regulatory Commission (NLRC), is a Nigerian government agency charged with the responsibility of regulating lottery activities nationwide.
The Agency, (NLRC) was created through the National Lottery Act of 2005 to oversee lottery operations, promote transparency, and protect players’ interests.
Principally, the commission regulates lottery games, issues licenses, and ensures accountability in the industry.
It also promotes responsible gaming practices and safeguards players’ interests. The agency is headed by a Director-General, currently Lanre Gbajabiamila, and has a governing board that oversees its operations.
The commission ensures compliance with regulations and guidelines in the lottery industry just as it protects players’ interests and promotes responsible gaming practices.
The NLRC regulates lottery and gaming at the federal level, while state-specific lottery boards, such as the Lagos State Lotteries and Gaming Authority, oversee gaming permits within their jurisdictions.
Under its licencing requirements, Operators must obtain licenses from the NLRC or relevant state boards to offer gaming services, including sports betting, lotteries, and casinos.
Recent changes to tax laws require operators to deduct taxes from player winnings, with rates set at 5% for gamblers in Nigeria.
To ensure responsible gaming, Operators are expected to promote responsible gaming practices, including age verification, self-exclusion options, and deposit limits. Operators who fail to comply with regulations may face fines, license revocation, or imprisonment.
However, a Supreme Court ruling on November 22, 2024, nullified the National Lottery Act, effectively scrapping NLRC’s regulatory powers over states.
With the Supreme Court ruling, NLRC can only issue licenses to lottery companies operating within the Federal Capital Territory (FCT), while states regulate lottery activities within their jurisdictions
Following the Supreme Court’s decision, NLRC’s role is evolving. The commission is expected to focus on regulating lottery activities within the FCT, while states take on regulatory responsibilities for their respective territories. States, by the outcome of the Supreme court ruling, are now empowered to develop their own gaming regulations, allowing for more flexibility and innovation in the industry.
It is on this premise that the Delta State House of Assembly (DTHA) is seeking a bill for a law to establish the Delta Gaming Board
The bill which has since sailed through first and second readings on the floor of the State House of Assembly and, currently at the committee stage; House committee on Trade and Investment is being sponsored by the Member representing, Ughelli North 2, State Constituency, Hon. Spencer Ohwofa alongside 27 other members as co-sponsors.
The bill when passed and signed into law, seeks to regulate and control gaming activities in the state.
At its second reading on Tuesday, September 30, this year, the lawmakers were unanimous on the merits of the bill just as they spoke in favour of it, urging its speedy passage.
Leading debate on the proposed Bill, lead sponsor and member representing Ughelli North II constituency, Hon. Spencer Ohwofa said the bill is predicated on a Supreme Court ruling in 2024 which empowers the State Houses of Assembly in the entire federation to come up with legislation that would regulate all forms of gaming and lottery activities.
Hon. Spencer disclosed that the bill seeks to repeal the existing five obsolete laws, including the Delta State Lotteries Board Law of 1976, the Lotteries Law of 1990, the Pools Betting (Control and Taxation) Law of 1996, the Casino Gaming Machines Management Law of 1996, and the Betting Duty Law of 1954.
He explained that the Bill aims to fine-tune and instill discipline in the gaming sector, while also boosting the state’s internally generated revenue.
Other Lawmakers who spoke in favour of the bill include the Deputy Speaker, Rt Hon Arthur Akpowovwo, Leader of the house, Hon. Emeka Nwaobi, Hon. Perkins Umukoro, Hon. Ferguson Onwo and Hon. Oboro Preyor stressed on the merits of the bill which will be a source of revenue to the State government and an avenue for job creation.
The Speaker, Rt. Hon. Emomotimi Dennis Guwor, thereafter referred the Bill to the House Committee on Trade and Investment for further legislative scrutiny to report back on October 28.
Meanwhile, in an interview with Assembly Correspondents, the lead sponsor of the bill and member representing Ughelli North 11 State Constituency, Hon. Spencer Ohwofa spoke extensively on the reasons behind the proposed bill.
He said, “The intent of this bill is to bridge the gap created by a recent supreme court judgement which was delivered on November 22, 2024 between the Attorney-general of Lagos State alongside other 35 Attorney-generals of States against the Attorney of the Federation.
The question then before the Supreme court was whether, in view of relevant provisions of the constitution, especially section 4, sub-section 2,3,4 A&B and section 7, A-C and part 1, 2 of the second schedule of the 1999 constitution as amended, whether it is the national Assembly that has the powers to make laws that would regulate the gaming and lottery sector in Nigeria.
“The Supreme court held that based on the above provision of the constitution, it is the State Houses of Assembly that have the power to make laws that regulate the gaming sector
“It went ahead to nullify the 2005 Lottery Act that regulates the entire sector in the federation stating that the National Assembly can only make laws that regulate the sector within the Federal Capital Territory (FCT).
“Anything outside that, it is the various state Houses of Assembly that have the power to make the laws that would regulate the sector.
“Prior to that judgement, it was that law that empowered the National Assembly Lottery Regulatory Commission (NLRC) to regulate that industry by issuing licenses and other activities in the entire sector.
“Following the judgement, I took it as a challenge that there is the need for Delta State to have its own law. Pursuant to this, I looked at the various existing laws in the State that regulate that sector and, I found out that there are five laws that were regulating that sector in Delta State which include betting law, among others.
“The laws, no doubt, are old as they cannot meet the realities on ground because, the industry has evolved over time. So, I felt that there is the need for Delta State to have an overhaul of the sector and bring out a law that can regulate the sector.
“I took it as a challenge to bring out those old laws because, some of those old laws are lacuna as some of them are at conflict with each other.
“With the proposed regulation, we intend to boost our Internally Generated Revenues (IGR) as well as ensure that our children are not exposed to gambling
‘Also, with the proposed bill, there is an anticipated high employment generation for our youths. Further, the proposed law seeks to protect the interest of players in lottery sector” Ohwofa said.
