LAGOS, Nigeria, Nigeria’s gaming industry is entering a new era of regulation as the Federation of State Gaming Regulators of Nigeria (FSGRN) announces sweeping reforms that include an 11% tax on Gross Gaming Revenue (GGR) and a new Sub-National Reciprocity Licensing Framework.
The updated policy, set to take effect from January 1, 2026, aims to unify fragmented state gaming laws, ensure fair revenue contribution, and promote transparency across the sector.
“This reform will strengthen state oversight and create a more structured and transparent gaming environment,” the FSGRN stated earlier this week, signaling what many believe will be the most significant change to Nigeria’s gaming sector in a decade.
The New System Explained
Under the new framework, gaming operators, including sports betting companies, lottery providers, and casino platforms, will now be able to register once and operate across multiple states participating in the unified system.
Previously, gaming firms had to secure individual licenses in each state, creating administrative bottlenecks and additional costs. The reform replaces that with a single-state registration model that ensures mutual recognition across state borders.
The decision follows a 2024 Supreme Court ruling affirming that state governments have the constitutional authority to regulate gaming within their territories. This ruling resolved years of jurisdictional conflict between federal and state agencies, clearing the way for nationwide standardization.
Mixed Reactions Across the Industry
The introduction of the 11% GGR tax has sparked mixed reactions across Nigeria’s gaming ecosystem.
Larger operators like BetKing, MSport, and NairaBet are expected to adapt smoothly, given their financial capacity and advanced infrastructure. However, smaller and emerging gaming startups have raised concerns about compliance costs and the risk of being edged out of the market.
“We support the idea of structure and fairness,” said Tunde Ayeni, a Lagos-based gaming consultant.
“But the rollout must be gradual. If the financial burden is too heavy, we could see smaller gaming firms pushed out of business.”
For players, some experts warn that the new tax could indirectly affect bonuses, betting odds, and promotions, as operators might shift operational costs onto consumers.
Impact Beyond Betting
While the reform primarily targets betting and casino operations, its effects could ripple across Nigeria’s broader gaming ecosystem, including mobile game startups, esports teams, and streaming communities.
Nigeria’s esports industry, one of Africa’s fastest-growing, often relies on sponsorships from betting and gaming brands. Analysts predict that higher taxes and tighter margins could reduce sponsorship budgets and shrink prize pools for tournaments.
Still, others see potential upside. A more organized, transparent system could attract foreign investors, strengthen consumer trust, and curb illegal gaming. With the right implementation, Nigeria could set a model for sustainable gaming regulation in Africa.
What’s Next
The FSGRN has announced that a detailed compliance and implementation guide, including payment plans and registration steps, will be released by December 2025.
Gaming companies are advised to begin aligning their systems and reporting structures now to avoid penalties once the new rules take effect.
Nigeria’s gaming sector, projected to surpass $1 billion in revenue by 2026, faces a pivotal year ahead. Whether these reforms strengthen its foundation or strain smaller ventures will depend largely on execution, transparency, and collaboration between regulators and industry players.
Nigeria’s gaming industry is at a turning point, where regulation meets innovation. Will this new system bring balance or barriers?
Share your thoughts below, how do you think this will shape the future of gaming in Nigeria?