Lagos begins 5 per cent withholding tax on gaming winnings

News Lagos begins 5 per cent withholding tax on gaming winnings Published on February 20, 2026 By Oluwaseun Taiwo The Lagos State Government has commenced the implementation of a five per cent withholding tax on gaming winnings from licensed gaming platforms operating within the state. The policy, which takes immediate effect, applies to net winnings and will be deducted at the point of payout to players. In a public notice signed by Are Bashir, Chief Executive Officer of the Lagos State Lotteries and Gaming Authority, all licensed gaming operators in Lagos State were directed to comply immediately with the new tax framework in line with existing Nigerian tax laws and regulatory directives governing the gaming industry. According to the notice, the five per cent deduction will be automatically withheld before payment is made to players and remitted to the Lagos State Internal Revenue Service as the statutory tax authority. The state government explained that the measure forms part of Lagos’ broader drive to strengthen tax compliance, transparency, and accountability in the rapidly expanding gaming sector. Under the new arrangement, players are required to provide their National Identification Number (NIN) in line with Know Your Customer (KYC) regulations. The notice clarified that all deductions and remittances will be handled strictly by licensed gaming operators in accordance with regulatory requirements. It further stated that players will receive their winnings net of the statutory deduction, with proper records maintained to ensure transparency. The withholding tax deducted, the authority noted, will also serve as a tax credit to the player. “All licensed gaming operators in Lagos State have now been formally directed to commence the deductions with immediate effect,” the notice said. The Lagos State Government reiterated that the policy is aimed at ensuring proper regulation of the gaming industry while aligning operators and players with existing tax obligations within the state. Don't Miss I have known Tinubu for 40 years but won’t join APC – Ireti Kingibe You may like Court convicts, fines firm for illegal BDC operation in Lagos Nigerian Navy intercepts 500kg of suspected cannabis in Lagos Lagos: LAWMA arrests two for public dumping of refuse Lagos pledges full support for anti-plastic pollution campaign Police declare businessman wanted over two brutal murders in Lagos Police launch 24-hour patrol on Lagos coastal road

SOURCE: https://dailypost.ng/2026/02/20/lagos-begins-5-per-cent-withholding-tax-on-gaming-winnings/