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In Nigeria, sports betting and other forms of gambling have always been as popular as they have been on the end of a more negative attitude.
Nigeria’s thriving economy has helped to drive the popularity of gambling in the country. Just as it has in many parts of the world, the internet has lent a helping hand by making access to sports coverage and to sports betting services more available. The nation, meanwhile, is loving it. According to an article on website Mondaq, which took data from sources in the gambling industry, more than 60 million Nigerians have taken part in some form of sports betting, 53% of Nigerians bet at least once a day and 2 billion dollars is spent in the country on sports betting each day.
Below is a look at some of the rules and regulations around sports betting in Nigeria, plus consideration of how the impact of sports betting in Nigeria may affect attitudes towards sports betting in wider Africa and potentially improve life in these countries.
Understanding the laws and attitudes towards sports betting in Nigeria
There are some grey areas in the Nigerian system when it comes to gambling, but authorities appear to be relatively tolerant of sports betting and some other forms of gambling. Gambling in Nigeria has been popular even as far back as its colonial times and betting would take place on sport. At the same time, however, attitudes towards sports betting and other forms of gambling have been more negative.
Online sports betting and online gambling only entered the country around 2009. Generally, when it comes to online gambling, laws in Nigeria are against certain forms, such as games of chance, into which dice games, non-skilled card games and roulette all fall. In the online sphere, however, it’s unclear whether these are still illegal because laws make no reference to online casino gaming. This makes pursuit of this leisure activity neither strictly against the law, nor strictly legal. It’s a grey area, in other words. Online sports betting appears to be the only form of online gambling that the law permits. Nigerians seem quite interested in American football and it has become the one of the most watched sports in Africa with Lagos Marines being the top team of American Football in Nigeria. Many Nigerians have gone to represent the NFL in USA and some of the notable players include Nelson Agholor and Ola Adeniyi. This has increased Nigerian bettors’ interest in following NFL lines thus widening their betting horizons.
Licensing
The National Lottery Regulatory Commission (NLRC) regulates lottery and gaming activities in Nigeria, although the Lagos State Lotteries and Gaming Authority also looks to regulate activities in Lagos itself. This is due to an overlap between state and federal government when it comes to regulating gaming, but the NLRC is the body generally responsible for awarding licenses, which includes licenses for sports betting operators. Licensing as a process is divided into application, pre-approval and post-approval. A sports betting license is valid for five years, and a mobile lottery/gaming one is valid for a year.
Taxation
There have been calls in Nigeria for heavier taxation on gambling operators. A lot of these come from elements who, possibly still uncomfortable with the concept of gambling as a leisure activity, would like to discourage betting and other gaming activities.
Taxation on sports betting operators isn’t too heavy. They must pay 3% of gross processes to the National Lottery Trust Fund (NLTF); 1% of gross monthly sales turnover to the NLRC; and 2% to the NLTF and bank guarantee of a minimum of N25 million valid for at least one year for sports betting permit holders.
The impact of sports betting in Nigeria on wider Africa
Nigeria isn’t the only African country that allows online sports betting. Citizens in both Kenya and South Africa can also make wagers online and not feel the weight of the law come crashing down on them. South Africa, in particular, has huge revenue, and quality of life in the country is generally good.
Like Nigeria and South Africa, Kenya likewise understands the taxation opportunities and chance to improve the economy that legalization of sports betting offers, so it imposes heavy taxes on gambling operators.
Clearing up confusion
One of the issues with gambling in Africa is not just that there’s lots of confusion around what’s legal and what’s not, but there’s also a lack of regulation. As well as introducing laws, countries must monitor activities so that illegal operators aren’t able to make money from their activities but avoid contributing to the improvement of their country’s overall economic situation.
Making the most of their own market
Right now, Nigeria is a hot prospect for overseas operators. The lack of clarity around gaming in Nigeria and in other countries has paved the way for overseas operators to enter the market. A change in attitudes and in legislation could allow African countries to explore the vast potential their markets offer and generate change for the better in the countries.
Despite some of its intolerance around gambling, Nigeria smiles kindlier upon sports betting. The benefits the country enjoys from its more relaxed attitude towards sports betting could serve as an example to other African nations of what is possible for their countries if they open the door to sports betting.
