Lexgtdt Gaming 2020 Nigeria
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Nigeria Yahaya Maikori and Osayamen Ojo Law Allianz INTRODUCTION Age restrictions 3 What is the minimum age for participating in lawful Legal definition of ‘gambling’ gambling? 1 What are the legal elements required for an activity to be regarded as gambling? The minimum age for participating in lawful gambling is 18. Section 34 of the National Lottery Act states that it is an offence for any person to In Nigeria, gambling is conducted according to laid-down legislation knowingly permit a child or young person below the age of 18 to partici- on gambling that is referred to as ‘lottery’ in most jurisdictions, which pate in gambling. This is also the minimum requirement across all the collectively determines the types of gambling permitted in the country. states of the Federation. The legal elements of gambling are determined at two levels: nation- ally and individually among the 36 states that make up the Nigerian Penalties Federation. 4 What are the penalties for offering unlawful gambling? Consequently, gambling is defined to encompass different elements of gaming in each legislation. At the national level, the National Lottery The penalties for offering unlawful gambling under the National Lottery Act defines gambling to include ‘any game, scheme, arrangement, Act (national law) is imprisonment up to a term of three years or a fine system, plan, promotional competition or device for the distribution of of at least 20,000 naira, or both. At state level, the penalties vary from prizes by lot or chance, or as a result of the exercise of skill and chance state to state. For instance, in Lagos state, the penalty according to the or based on the outcome of sporting events or any other device which Casino and Gaming Regulatory Law is imprisonment up to a term of five shall be operated according to a licence’. The gambling licences granted years or a fine of 20 million naira, or both. It is also worth noting that by the National Lottery Regulatory Commission (NLRC) include, but are the different gambling regulators in their respective jurisdictions have not limited to, the following: it in their authority to impose sanctions not expressly stated in the law. • charitable lottery; • online lotteries; 5 Does the law penalise the gambler directly for participating in • promotional lottery; and unlawful gambling? • sports lottery. The law does not penalise the gambler directly for participating in As an example of a state-level definition, in Lagos, gambling is defined unlawful gambling. in the Casino and Gaming Regulatory Authority of Lagos State as ‘the wagering of a stake of money or anything of value on the unknown Social and non-profit gambling result of a future event at the risk of losing all or a portion for the sake 6 Are there exceptions for social gambling, or charitable or of a return, irrespective of whether any measure of skill involved or not non-profit gambling? and encompasses all forms of gaming and betting’. Therefore, the legal elements required for an activity to be There are exceptions for social or charitable gambling in Nigeria. The regarded as gambling is specified by the applicable laws of the different licensing conditions for social gambling in Nigeria are less stringent. jurisdictions. Some forms of social gambling are not taxed but must be licensed for a fee. It mostly depends on whether it is for charitable, social or promo- Remote activity tional purposes. 2 With respect to remote or other cross-border activity, where is the wager deemed to take place? Regulatory authorities 7 What entity regulates land-based and remote gambling, and The area of cross-border activity concerning remote gambling has not what are the regulator’s powers? been specifically defined in Nigerian legislation. Presently, there is no specific law that regulates remote gambling in Nigeria, although it is Land-based gambling and remote gambling are regulated at both the recognised and all licences are implied to include remote gambling. national and state levels. The NLRC regulates gambling at the national However, from previous experience, a wager is deemed to have taken level and the Federal Capital Territory. At the state level, some states place from the location of the consumer, provided the punter or are regulated by a specific gaming board, authority or commission consumer was not targeted by the foreign operator. (eg, in Lagos it is the Lagos State Lotteries Board; in Anambra it is the Anambra State Gaming Board), while in less regulated states, gambling is overseen by the state’s internal revenue board. www.lexology.com/gtdt 1 Nigeria Law Allianz The regulator grants a gambling licence upon fulfilment of the Director, officer and owner licensing conditions for application. It also has the power to revoke or suspend a 11 Must individual directors, officers or owners of licensees also licence when an operator defaults or does not comply with the law. They be licensed or reviewed for suitability? also ensure enforcement and impose administrative sanctions on non- compliant operators. Overall, their functions revolve around ensuring Based on the law currently applicable, individual directors, officers or gambling activities are conducted under the law to create a sanitised owners of licensees are not required to be licensed but are reviewed for gambling society and protect the diverse sectors of society. suitability. However, there are proposals and statutory amendments at both national and state levels to reflect current trends in this regard. Anti-money-laundering regulations 8 Are gambling licensees considered financial institutions for Location purposes of anti-money-laundering and similar financial 12 May a gambling location be part of a resort, restaurant or services regulatory requirements or are they otherwise other multi-purpose location? What limitations apply? subject to such requirements? Gambling may be permitted to be a part of a resort, restaurant, hotel or Gambling licensees are not considered financial institutions for other multipurpose location. A popular example of gambling in a hotel purposes of anti-money laundering. However, licensees are consid- is the Federal Palace Hotel casino situated in Lagos state. Lagos state ered ‘designated non-financial institutions’ for purposes of anti-money provides two categories of casino licence: a stand-alone casino and a laundering regulatory requirements. They are also subject to other hotel-casino. Licence limitations apply; for instance, the gambling resort regulatory requirements such as: or hotel must not be situated close to a school or in a residential area. • the Central Bank of Nigeria guidelines; • the Money Laundering (Prohibition) Act (As Amended); Casino development • the Special Control Unit against Money Laundering; and 13 What considerations arise in developing a casino resort • the Terrorism (Prevention) Act. project that are not typical to other resort development? LAND-BASED GAMBLING There are currently no casino resort projects in the country. However, casino projects of whatever sort are subject to particular considera- Types tions. Such particular considerations are determined by the regulatory 9 What types of land-based gambling are permitted in your authority in the jurisdiction where the licensee operates. The considera- jurisdiction, and is gambling regulated at a national or tions include, but are not limited to: subnational level? • zoning; • minimum financial requirements; Land casinos, sports betting (bookmakers), slot machine operators, • types of casino; and raffles and Lotto shops are the types of land-based gambling permitted • technology. in Nigeria. However, the regulatory authorities have the power to create new licences to accommodate the ever-growing gambling industry. Passive/institutional ownership Gambling is regulated at both the national and state (subnational) 14 Are there provisions for passive or institutional ownership levels, but some states run their own franchised lottery through private that allow for exemption or modification of licensing operators. requirements? Establishment licensing There is no such provision for passive or institutional ownership that 10 Please describe the licensing criteria to operate land-based permits the exemption or modification of licensing requirements. gambling of each type or classification. Does your jurisdiction limit the number of available licences? Responsible gambling 15 What responsible gambling obligations apply to licensees? For casino licensing, an application must be made to the gambling regu- latory authority in the jurisdiction or state in which the operator wishes Currently, there are no responsible gambling obligations applicable to to conduct its operations. The application shall consist of an applica- licensees in the country. There is also no centrally maintained exclu- tion letter, non-refundable application fee (prescribed by the authority), sion list of persons who are not permitted to gamble. However, with the documentary evidence of business incorporation, a detailed business recent changes and developments in the gambling industry in Nigeria, plan or proposal of the proposed casino, its financial capability and its regulations on responsible gambling are currently pending for passage technical structure. Upon the submission of the application, the regula- both at the national level and in some of the states. tory authority makes its decision on whether or not to grant a licence to the operator or applicant. Taxes All other forms of land-based gambling licensed in the country 16 What type of tax and what tax rate applies to each form of follow the same application process subject to further conditions being lawful land-based gambling activity? stipulated by the regulatory gambling authority. There are no limits on the number of available licences in the The tax rate differs across states in the country. Gambling operators country. However, the regulatory authorities may place a temporary are licensed at the national level and in the state where they choose restriction on the number of licences issued subject to certain condi- to operate. Therefore, they pay tax in the jurisdiction under which they tions prevailing at such times.