The Lagos State Government has begun enforcing a five percent withholding tax (WHT) on gaming winnings, directing all licensed operators in the state to implement the deduction with immediate effect.
In a public notice issued Thursday, Are Bashir, chief executive officer of the state gaming authority, said the move aligns with existing tax regulations and industry oversight rules.
“All licensed gaming operators in Lagos have been directed to comply immediately with the framework,” Bashir said.
Under the new directive, five percent of qualifying net winnings will be automatically deducted at the point of payout and remitted to the Lagos State Internal Revenue Service (LIRS).
“Under the new arrangement, 5% of qualifying gaming winnings will be automatically deducted before payment is made to players and remitted to the Lagos State Internal Revenue Service (LIRS) as the statutory tax authority,” he stated.
According to the government, the policy forms part of broader efforts to strengthen tax compliance, transparency and accountability within the fast-growing gaming sector.
Compliance and Identification Requirements
Bashir explained that the deduction applies to net winnings from licensed gaming platforms operating within Lagos State. Players will receive payouts after the statutory tax has been deducted.
“Players will receive their winnings net of the statutory deduction, with proper records maintained for transparency. The WHT deducted also serves as a tax credit to the player,” he added.
As part of compliance measures, players are required to provide their National Identification Number (NIN) in line with know-your-customer (KYC) obligations. Licensed operators are responsible for overseeing the deductions and ensuring accurate remittance in accordance with regulatory guidelines.
The authority confirmed that all licensed gaming operators have been formally notified to commence implementation of the new tax framework without delay.
