Lagos State Government has announced a new policy targeting betting winnings, mandating an automatic 5% deduction on all payouts made to winners by betting and gaming operators in the state.
The Lagos State Government has urged operators to comply fully, warning that sanctions await defaulting companies as enforcement begins immediately.
Under the new directive, licensed betting companies operating in Lagos are required to withhold 5% at the point of payout and remit the funds to the state government as part of its revenue drive. The policy applies to both online and physical betting platforms.
State officials say the move is aimed at boosting internally generated revenue (IGR) and improving regulation of the fast-growing gaming sector. Authorities insist the deduction is legal and aligns with Lagos State’s powers to tax gaming activities within its jurisdiction.
However, the decision has sparked mixed reactions among bettors and industry stakeholders. While the government argues it will strengthen public finances and oversight, critics warn the policy could discourage participation, reduce winnings, and push some bettors toward unregulated platforms.