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Throwback Times Nigeria has learnt that Lagos Government has commenced enforcement of 5% Automatic Deduction on Betting Winnings.
All licensed betting companies has been directed to begin automatic deductions from customers’ winnings, enforcing a 5% withholding tax (WHT) on gaming payouts across the state.
In a public notice issued to licensed gaming platforms, authorities confirmed the immediate implementation of the tax regime targeting winnings generated through regulated betting operators.
The directive was signed by Mr. Are Bashir, Chief Executive Officer of the Lagos State Lotteries and Gaming Authority.
According to the notice, the state “has commenced the implementation of a 5% Withholding Tax (WHT) deduction on gaming winnings, in line with applicable Nigerian tax laws and regulatory directives governing the gaming industry.”
The deduction will apply directly to players’ net winnings before payment is made. Betting companies are required to automatically deduct 5% of qualifying winnings at the point of payout and remit the funds to the Lagos State Internal Revenue Service (LIRS).
Authorities stated that the policy forms part of broader fiscal reforms aimed at strengthening tax compliance, transparency, and accountability within the rapidly expanding gaming sector.
The directive also introduces stricter identity verification requirements. Players must provide their National Identification Number (NIN) in compliance with Know Your Customer (KYC) regulations.
Under the new arrangement, bettors will receive winnings net of the statutory deduction. The withheld amount will serve as a tax credit to the player.
All licensed gaming operators in Lagos State have been directed to comply immediately.
