Re: Rebuttal To Public Notice Issued By The Lagos State Government On Alleged Illegal And Unlicensed Gaming Operators

FEDERAL CAPITAL TERRITORY LOTTERY REGULATORY OFFICE (FCT-LRO)

Office of the Director-General

PRESS RELEASE

DATE: 23^rd April 2026

REF NO.: FCT-LRO/PR/04/2026

RE: REBUTTAL TO PUBLIC NOTICE ISSUED BY THE LAGOS STATE GOVERNMENT ON ALLEGED ILLEGAL AND UNLICENSED GAMING OPERATORS

The Federal Capital Territory Lottery Regulatory Office (FCT-LRO) has carefully reviewed the public notice issued by the Lagos State Lotteries and Gaming Authority (LSLGA) concerning alleged illegal and unlicensed gaming operators.

While the FCT-LRO supports lawful regulation, consumer protection, and the elimination of fraudulent operators, it is necessary—indeed imperative—to address the material misstatements of law and jurisdiction contained in the publication. For clarity and public guidance, the FCT-LRO responds paragraph-by-paragraph as follows:

1. ON THE CLAIM THAT 59 OPERATORS ARE “ILLEGAL AND UNLICENSED” IN LAGOS STATE

The blanket classification of operators as “illegal” is legally untenable where such operators are duly licensed by competent authorities within the Federal Republic of Nigeria, including the FCT-LRO.

Under Section 4(2) & (3) of the Constitution of the Federal Republic of Nigeria 1999 (as amended), legislative competence is divided between the Federation and the States. Matters relating to:

• Interstate trade and commerce
• Telecommunications and digital platforms
• National economic activities crossing state boundaries

fall within federal purview or shared competence.

Online gaming and remote betting platforms, by their operational architecture, are not confined to a single state and therefore cannot be exclusively regulated by any one state authority.

2. ON THE ADVISORY TO THE PUBLIC TO DESIST FROM PATRONISING SUCH OPERATORS

While consumer protection is a legitimate objective, the advisory is misleading and overbroad, as it fails to distinguish between:

• Unlicensed operators in the true sense, and
• Operators licensed under other competent jurisdictions within Nigeria

Operators licensed by the FCT-LRO are subject to stringent compliance frameworks, including:

• Anti-Money Laundering (AML) controls
• Know Your Customer (KYC) obligations (Stringent Police, DSS and EFCC Character Checks)
• Technical system certification
• Responsible gaming and consumer protection standards

To categorise such entities alongside unregulated platforms is inaccurate and capable of misleading the public.

3. ON THE CLAIM OF “EXCLUSIVE REGULATORY AUTHORITY” BY LAGOS STATE

The assertion that Lagos State possesses exclusive regulatory authority over online gaming, lotteries, and related activities is inconsistent with constitutional provisions.

Specifically:

• Item 62, Part I of the Second Schedule (Exclusive Legislative List) vests the National Assembly with authority over trade and commerce between states
• Item 46, Part I of the Second Schedule covers posts, telegraphs, and telecommunications, which underpin digital gaming platforms
• Section 44(3) and related jurisprudence affirm federal control over resources and activities of national scope

Accordingly, any claim of exclusivity over interstate or digital gaming operations is legally unsustainable.

4. ON RELIANCE ON THE SUPREME COURT DECISION IN A.G. LAGOS v. A.G. FEDERATION (SC/1/2008)

The reliance on the above decision is misapplied and taken out of context.

The Supreme Court’s decision addressed physical lottery operations within a state’s territorial jurisdiction. It did not extend to:

• Online gaming platforms
• Remote betting systems
• Cross-border or interstate gaming operations

Therefore, the judgment cannot be construed as granting blanket or exclusive authority over all forms of gaming, particularly those enabled by digital infrastructure.

5. ON THE ALLEGATION THAT OPERATORS LACK “REQUISITE LICENCES AND APPROVALS”

This assertion fails to recognise Nigeria’s multi-layered regulatory structure.

Operators licensed by the FCT-LRO:

• Have undergone due regulatory vetting
• Operate under legally issued permits
• Comply with federal and territorial regulatory standards

The absence of a Lagos State licence does not invalidate a licence lawfully issued by another competent authority, particularly for operations that are not geographically confined.

6. ON THE PUBLIC WARNING REGARDING NON-PAYMENT OF WINNINGS AND LACK OF PROTECTION

The FCT-LRO maintains a robust enforcement and compliance regime that includes:

• Player protection mechanisms
• Dispute resolution frameworks
• Sanctions for non-compliance
• Continuous monitoring and audit of licensees

There is no empirical basis to suggest that operators licensed outside Lagos State are inherently unsafe or unreliable.

7. ON THE DIRECTIVE TO OPERATORS TO “REGULARISE” WITH LAGOS STATE

While cooperation among regulators is encouraged, any directive compelling already-licensed operators engaged in interstate or online operations to submit to an additional licensing regime raises concerns of:

• Double regulation
• Regulatory conflict
• Barriers to interstate commerce, contrary to constitutional intent

8. POSITION OF THE FCT-LRO

The FCT-LRO reiterates that:

• Nigeria operates a federal system of governance, not a unitary one
• Regulatory authority must align with constitutional boundaries
• The gaming industry—particularly the digital segment—requires harmonised, not fragmented regulation

9. CALL FOR COOPERATIVE REGULATION

In the interest of national economic stability and investor confidence, the FCT-LRO calls for:

• Constructive inter-governmental engagement
• Harmonisation of regulatory frameworks
• Respect for jurisdictional limits

10. ADVISORY TO OPERATORS AND THE PUBLIC

Operators licensed by the FCT-LRO are advised to:

• Continue lawful operations in compliance with their licence conditions
• Maintain high standards of regulatory adherence
• Engage with relevant authorities where necessary

Members of the public are advised to:

• Patronise only duly licensed and compliant operators
• Verify operator status through appropriate regulatory channels

Approved Operators

Verified, licensed, and compliant operators in the FCT April 2026

Lottery Licenced Operators(Fixed Odds/Pari Mutual)

Sports Betting Operators

Casino Gaming Operators

CONCLUSION

The Federal Capital Territory Lottery Regulatory Office rejects the mischaracterisation of duly licensed operators as illegal and urges all stakeholders to adopt a legally sound, cooperative, and constitutionally aligned approach to gaming regulation in Nigeria.

SIGNED

Lanre Gbajabiamila OON

Director-General

Federal Capital Territory Lottery Regulatory Office (FCT-LRO)

For further enquiries: info.fctlro@gmail.com

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