Corporate organisations that wish to carry on the business of an online casino are required to obtain a licence from the requisite governmental agency.

  • Authorities in Charge of Casino License in Nigeria

In Nigeria, the power to issue online sports betting & casino license is shared between the Federal Government of Nigeria and various State Governments. There are 36 states in Nigeria, and most states maintain Lottery Boards, which are responsible for the issuance of various gaming licenses. The National Lottery Regulatory Commission is responsible for the issuance of gaming licenses on behalf of the Federal Government.

 In Lagos State,  the Lagos State Lotteries Board (LSLB) is the government agency in charge of issuing the licence to corporate bodies who intend to run an Online Casino business.

  • Requirements for Online Casino License in Lagos

The general  information and documents required to obtain an Online Casino Licence in Lagos are as follows:

1. Application letter stating the intention of the applicant

2. Non-refundable application fee of N500, 000 (Five Hundred Thousand Naira)

3. Documentary evidence of business incorporation includes:

i. Certificate of incorporation

ii. Memorandum and Articles of Association

iii. A minimum share capital of N20,000,000.00 (Form CAC 2)

iv. Details of Directors (Form CAC 7)

4. Registered office address A detailed business plan/proposal on the proposed casino and gaming machine operations providing the following information:

a. Business structure

i. Name and profile of all directors and key management staff

ii. Tax clearance certificate of all directors in the preceding 3 (three) years

iii. Descriptions of operations and management structure

iv. An industry analysis that demonstrates a clear understanding of the gaming industry. The analysis must include the names of major players.

v Current gaming licences held by the Applicant (if any)

vi. Marketing plan

b. Financial information/structure

i. Management account of your organisation

ii. Company's Bank statement for the last 1 (one) year in support of financing plan

iii. 5 (Five) year projected Profit and Loss Account, Balance Sheet, Cash Flow analysis – this should provide for payment of the licence fee and monthly tax.

iv. Nature and extent of financing and capital investment. Indicate if foreign investment is involved in the business, terms of investment

v. Capital budgets and financing plan: source of finance, foreign investment and terms of investment (if any)

c. Details of Casino operations

i. Location of the casino

ii. Proposed trademark, brand name, logo and colours

iii. Types of table games and machine games to be offered

iv. Number of gaming machines to be deployed – note that all machines must bear the applicant's brand

v. Know Your Customer (KYC) processes

vi. Price structure

vii. Rules and participant's code of practice

viii. Responsible gaming policies

d. Technical structure

i. Floor plan of casino operations including the layout of tables and slot machines Details of table games manufacturers/suppliers

ii. Details of slot machine manufacturers/suppliers

iii. Surveillance system – this should include CCTC planned coverage for the gaming area and general gaming environment

iv. Casino management system including Customer Management, Record Management, Capture of transactional information/gaming machine

v. System Architecture

vi. Back up Policy and Business Continuity Policy

vii. Data Protection and Recovery Policy

viii. Accounting software

There is some financial obligation attached to obtaining an online Casino Licence. The financial requirements for obtaining a license after company registration are as follows:

i. Application fee - N500, 000 (Five Hundred Thousand Naira)

ii. licence fee (first year) - N20, 000, 000 (Twenty Million Naira)

iii. Monthly gaming tax - N200,000 (Two Hundred Thousand Naira)

iv. Annual licence renewal fee - N20, 000, 000 (Twenty Million Naira)

Conclusively, the online casino license is valid for one year upon approval and is subject to annual renewal. The Online Casino Licence is usually processed within two months from the date of application. Although the requirements from state to state are similar, however, the license fees vary. For instance, the license fee for a sports betting license, which includes an online casino in Oyo State, Nigeria is N3,000,000.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.