NLRC Strengthens Compliance for Safer, Transparent Industry

Iyke Bede reports that the National Lottery Regulatory Commission has announced changes signalling a commitment to safeguarding players and enhancing industry integrity

In a decisive move to raise standards in Nigeria’s gaming industry, the National Lottery Regulatory Commission (NLRC) unveiled a series of sweeping reforms aimed at ensuring greater transparency and compliance at this year’s All Gaming Stakeholders Conference, staged at Oriental Hotels in Lagos.

Lanre Gbajabiamila, the Commission’s Director-General, revealed these reforms during an interactive session. The changes—ranging from rigorous new reporting requirements to enhanced consumer protections—signal a commitment to safeguarding players and upholding industry integrity, setting a new standard for gaming operators across the country.

One key area addressed was compliance and regulatory requirements for operators, with Gbajabiamila noting, “Penalties will apply accordingly” to operators who fail to submit the mandatory monthly reports, which enable the Commission to generate reports for the Federal Government.

The NLRC boss also noted that, over the years, there have been discrepancies in financial records and payments. He advised operators to adopt uniform payment details that match the company’s profile instead of using personal accounts. In line with this directive, he also advised that “remittances must be sent to the commission’s email within 24 hours of payment, using the specified official email address.”

Strengthening punters’ confidence in the industry, Gbajabiamila expressly stated that operators are now mandated to comply with the Commission’s cybersecurity directives.

“The commission will entertain any request from any operator only if there is full compliance with the cybersecurity framework,” Gbajabiamila noted, emphasising the pivotal role of independent audits requiring independent consultants to “verify and confirm” operators’ claims regarding compliance.

So far, a fair number of non-governmental organisations have emerged to support the industry by providing services aimed at minimising gambling addiction. Gbajabiamila urged the industry to form a committee to support these nonprofits, facilitating quarterly reports to the Commission, which will supervise the activities of the NGOs.

Additionally, Gbajabiamila revealed that the government now requires character checks on shareholders and key management staff.

“Operators, shareholders and key management staff… will be invited for background and character checks by the Department of State Security,” he stated.

This move aligns with the NLRC’s goals to crack down on money laundering and terrorism financing in the industry.

With the industry’s growing shift towards online operations, he emphasised the need for operators to thoroughly vet payment service providers and encourage operators to share these providers with the Commission for verification. He also commended operators’ ongoing efforts in Know Your Customer (KYC) procedures and advised against using generic email addresses like Yahoo or Gmail, urging the adoption of domain-specific emails to “maintain professionalism in the industry.”

He further noted that the sports betting licence fee has recently been reviewed and is set at ₦75 million, signalling changes aimed at streamlining compliance and transparency.

Going forward, operators are expected to provide punters with two accounts: a deposit wallet and a winnings wallet. The deposit wallet will serve as a non-refundable account, while the winnings wallet will allow punters to withdraw their earnings.

“The deposit wallet is not a savings account,” Gbajabiamila stated, hinting at concerns that deposit wallets could be used for unscrupulous activities.

As for the elephant in the room—double taxation—Gbajabiamila urged stakeholders to exercise patience until the Supreme Court rules on the taxation challenges currently facing operators.