In a landmark decision, the Supreme Court of Nigeria has nullified the National Lottery Act, effectively granting state governments exclusive authority to regulate lottery and gaming activities within their jurisdictions. The ruling came in response to a case filed by the Lagos State Government against the Federal Government (Suit No. SC/1/2008).
The verdict represents a significant victory for state autonomy in Nigeria’s federal system, particularly impacting the regulatory framework of the gaming industry. Under the new ruling, state governments now hold exclusive rights to oversee and regulate all lottery and gaming operations within their territories.
“This judgment reinforces the principles of true federalism,” said Gbenga Omotoso, Lagos State Commissioner for Information and Strategy. “It empowers states to chart their own path for effective regulation of gaming activities.”
The case, initiated during the tenure of former Governor Babatunde Fashola, SAN, followed a legal strategy originally conceived by current President Bola Ahmed Tinubu during his time as Lagos State Governor. The successful outcome aligns with Tinubu’s long-standing advocacy for greater state autonomy within Nigeria’s federal structure.
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Following the ruling, the Lagos State Lotteries and Gaming Authority (LSLGA) has been confirmed as the sole regulatory body for gaming activities in Lagos State. The agency has announced plans to strengthen its sector oversight, warning unauthorized operators to regularize their status or face prosecution.
“The Lagos State Government remains committed to ensuring that the gaming sector contributes to the State’s economic growth while protecting residents from unregulated activities,” Omotoso added.
The state government has called on all unlicensed operators to approach the LSLGA for proper registration immediately.
The ruling is expected to have far-reaching implications for lottery and gaming operations across Nigeria’s 36 states, potentially leading to significant restructuring of the industry’s regulatory framework at both state and federal levels.
Governor Babajide Sanwo-Olu’s administration has pledged to create a business-friendly environment for licensed operators while maintaining strict oversight to ensure transparency and responsible gaming practices in alignment with international standards.
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