Regulatory Alert

Supreme Court verdict on the National Lottery Act: Implications for the lottery and gaming industry

On 22 November 2024, the Supreme Court of the Federal Republic of Nigeria, in Suit No. SC/1/2008 between the Attorney-General of Lagos State & Others and the Attorney General of the Federation & Others, unanimously declared the National Lottery Act invalid.

This decision concludes a 16-year legal process initiated by the Lagos State Government seeking an interpretation of the Constitution that lotteries fall within the purview of residual matters, which are legislative issues reserved for State Governments.

This publication provides a highlight of the verdict.

• Read full report below

Takeaways

• Impact on licensing and compliance: The judgment renders the National Lottery Act (“NLA” or the “Act”) inapplicable across all the 36 states of the country. Consequently, the National Lottery Regulatory Commission (NLRC) no longer has authority over lottery and gaming activities in all these states. However, the Supreme Court affirmed the jurisdiction of the National Assembly to legislate on lottery matters for the Federal Capital Territory (FCT). 
• Overlap of functions and conflicts: Different states may potentially adopt diverse regulatory approaches, affecting the uniformity of operations and marketing strategies for lottery businesses.

Key questions include: 

1. Will gaming companies be allowed to serve customers in states where they are not licensed to operate? 
2. How will states enforce their regulatory oversight on companies not registered in their jurisdictions, especially since betting and gaming have gone digital?

Read full report for other takeaways.