Why NLRC Will Continue to Review Terms, Conditions with Operators

Nseobong Okon-Ekong appraises a recent Stakeholders Interactive Meeting between the federal government regulator in the betting and lottery industry and operators 

So much engagement was packed into the opening day of a recent Stakeholders Interactive Meeting hosted by the Director General of the National Lottery Regulatory Commission (NLRC), Mr. Lanre Gbajabiamila and his management team at the Oriental Hotel in Lagos. Based on the privilege given to the first speaker, Dr. Lekan Fadolapo, Director-General of the Advertising Regulatory Agency of Nigeria (ARCON), it may be right to assume that the meeting sought to highlight trends in advertising and how they relate to the lottery and gaming industry. 

For instance, it was emphasised at the meeting that gaming is in a special category of vetting when it comes to advertising because of the specific requirements demanded. Why is this? Simply put, lottery and gaming operators make a lot of promises in their advertisements, which need to be validated so that the end consumer is not taken advantage of. Fadolapo mentioned instances when advertisements, not necessarily in the lottery and gaming industry, have touched the raw nerves of sensitive members of the Nigerian society, leading to immediate stoppage and producers of the advert being dragged to the Advertising Offences Tribunal. He reminded lottery operators of the need to prevent their advertisements from being vetted early. Otherwise, they must be ready to pay additional charges for accelerated vetting.

At the meeting, it also emerged that the Office of the National Security Adviser (NSA) has placed new demands on operators for compliance with a new cyber security audit, for which a set of consultants have been appointed with the operators to ensure adherence. Part of the fresh stipulations from the NSA is that directors/owners and top management staff of lottery businesses will have to submit themselves for screening to assess their integrity. This is to strengthen the Anti Money Laundering and Terrorism Financing efforts carried out by the Nigerian Financial Intelligence Unit (NFIU) and the Economic and Financial Crimes Commission (EFCC). To underscore the importance of the new directive, Gbajabiamila sounded a note of warning that no form of engagement with operators will be entertained without compliance with the cyber security framework.  

Another area of focus at the meeting between the federal government regulator and operators in the lottery industry was the significance of data protection audits. Since a couple of lottery operators fall into the category of companies designated as Data Controller of Major Importance, those who process data of over 70 million Nigerians, the legal obligations placed were brought to the fore. For instance, it is binding on them to place a Privacy Notice on their website clearly stating, among other things, who they are, what they need the data for, what they need it for and if it will be shared with a third party. 

Although glitches, Gbajabiamila and the operators marred his virtual presentation and were eager to engage with Mr. Taiwo Oyedele, who chairs the Presidential Committee on Tax and Fiscal Policy Reforms. This is particularly so because multiple taxation has been an enduring vexatious issue in the lottery and betting industry. Gbajabiamila said it was wrong for Oyedele not to consider the opinion of the federal regulator in the lottery industry before fashioning tax policies for the sector. He, therefore, promised to chase after him until he was able to get him, and they could sit down to resolve all issues of mutual concern. 

However, a critical aspect of the meeting was the signing of a revised Terms and Conditions Agreement between the NLRC and lottery operators. Following a couple of analytical observations from the lottery and betting operators, Gbajabiamila agreed that terms and conditions may be in a state of flux that is continuously changing to meet the demands of the times. 

He said, “From the feedback, there is a need for further review. We have listened to the operators and stakeholders, and as a responsible government, we should be sensitive to their challenges.” 

Some casino operators wanted to know why they are being made to pay N100 million for a licence to operate while sports betting firms are free to play their trade for N75 million. In response, Gbajabiamila discountenanced the view that sports betting generates more revenue than casinos. He said while sports betting is a seasonal income stream, casinos generate a steady flow of income all year round. He warned that going forward, the NLRC will not take kindly to licensees who, having been given the go-ahead to operate, just lock up the license and then return at its expiration for a renewal.