The Lagos State Government has commenced the implementation of a five percent withholding tax (WHT) deduction on gaming winnings, directing all licensed operators in the state to comply immediately with the new framework.
The announcement was made in a newspaper advert published on Thursday by Are Bashir, Chief Executive Officer of the Lagos State Gaming and Lotteries Authority. According to him, the deduction is in line with applicable tax laws and regulatory directives guiding gaming activities within the state.
Under the new arrangement, the five percent withholding tax will apply to net winnings from licensed gaming platforms operating in Lagos. The deduction will be made at the point of payout before winnings are disbursed to players.
“All licensed gaming operators in Lagos have been directed to comply immediately with the framework,” Bashir stated.
He explained that five percent of qualifying gaming winnings would be automatically deducted and remitted to the Lagos State Internal Revenue Service (LIRS), which serves as the statutory tax authority in the state.
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According to the state government, the move forms part of a broader strategy to enhance tax compliance, improve transparency, and ensure accountability in the rapidly expanding gaming sector.
Bashir also noted that players would be required to provide their National Identification Number (NIN) in line with Know-Your-Customer (KYC) requirements. Licensed operators, he said, would be responsible for overseeing the deduction and remittance processes in accordance with regulatory guidelines.
“Players will receive their winnings net of the statutory deduction, with proper records maintained for transparency. The WHT deducted also serves as a tax credit to the player,” he added.
The directive signals a tightening of oversight in Lagos’ gaming industry, as authorities seek to formalise revenue collection mechanisms and strengthen regulatory compliance among operators.