The Lagos State Government has commenced the implementation of a five per cent Withholding Tax (WHT) on betting and gaming winnings in line with existing Nigerian tax laws and regulatory directives governing the gaming industry.
Under the new policy, Lagos introduces 5% withholding tax on betting, gaming winnings applies to net winnings from licensed gaming platforms operating within the state.
The deduction is made automatically at the point of payout, and all licensed gaming operators have been directed to comply with immediate effect.
According to the government, five per cent of qualifying winnings will be deducted before payment is made to players and remitted to the Lagos State Internal Revenue Service as the statutory tax authority.
The state explained that the initiative, under which Lagos introduces 5% withholding tax on betting, gaming winnings, is part of broader efforts to strengthen tax compliance, improve transparency and ensure accountability in the fast-growing gaming sector.
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Players are required to provide their National Identification Number in line with Know Your Customer guidelines, while licensed operators will handle all deductions and remittances in accordance with regulatory requirements.
Authorities added that players will receive their winnings net of the statutory deduction, with proper records maintained to promote transparency. The withheld tax will also serve as a tax credit to the player.
All licensed gaming operators in Lagos State have now been formally directed to commence full implementation of the policy, as Lagos introduces 5% withholding tax on betting, gaming winnings takes effect across the industry.