How To Start A Sports Betting Business In Nigeria – Media, Telecoms, IT, Entertainment

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Nigeria:

How To Start A Sports Betting Business In Nigeria


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Nigeria’s betting industry is a fast-growing area of the
economy. This industry has further developed with the increase of
mobile and internet penetration coupled with the availability of
payment platforms provided by Fintech Companies.

Who Regulates Online Sports Betting?

The Lagos State Lotteries Board (LSLB) regulates and controls
every aspect of lotteries including Online Sports Betting (OSB) .
Consequently, a gaming operator, that intends to operate an Online
Sports Betting business in Lagos State, must obtain a license from
the Lagos State Lotteries Board regardless of any license or permit
previously obtained from any other national or state agency.

Some Online Sports Betting Operators include….

  • BETNAIJA

  • NAIRABET

  • SUPABET

  • 1960BET

Financial and Local Content Requirements

  • Minimum Share Capital of N20,000,000
    (Twenty Million Naira): This amount is merely the minimum value of
    the company shares at the time of registration and shareholders are
    not required to make financial contributions to this amount.

  • Note that there is a local content
    requirement for operating an OSB business in Lagos. 100% Foreign
    ownership is not permitted as Nigerians are required to hold at
    least 15% of shares in the foreign owned company.

  • Application Fee: N500,000 (Five
    Hundred Thousand Naira).

  • Initial Licence Fee : N50,000,000
    (Fifty Million Naira).

  • Annual Renewal Licence Fee:
    N10,000,000 (Ten Million Naira).

The Licensing Procedure

  • An application is to be submitted
    together with the required documents and a non-refundable
    application fee of N500,000.

  • Upon submission of the application,
    the Lagos State Lotteries Board will conduct due diligence on the
    application which will take a minimum of 15 working days.

  • An applicant will then be invited to
    make a presentation before the LSLB, to justify the grant of the
    OSB Licence.

  • After a successful presentation and
    upon satisfactory fulfilment of the pre-approval requirements, the
    Licence fee of N50,000,000 is to be paid.

  • Following this payment, an
    Approval-In-Principle (AIP) will be issued, which is a temporary
    Licence granted for a period of 90 days.

  • The final license will be issued upon
    the fulfilment of all the conditions stated in the AIP.

N.B: LSLB’s licence covers all distribution channels
including betting centres and outlets the operator intends to
deploy in Lagos.

Footnotes

1 You can access our articles on how to obtain a national
sports betting license by clicking on this link
https://pavestoneslegal.com/tag/national-sports-betting/

Originally published 11 August, 2020

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.

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