The Digest:
The Lagos State Government has commenced implementation of a five percent withholding tax (WHT) deduction on gaming winnings, applicable to net winnings from licensed gaming platforms operating within the state. In a newspaper advert, Lagos State Lotteries and Gaming Authority CEO, Are Bashi,r stated the deduction aligns with applicable tax laws and regulatory directives, and will be made at the point of payout. All licensed gaming operators have been directed to comply immediately, with deductions automatically applied before payment to players and remitted to the Lagos State Internal Revenue Service (LIRS). Players must provide their National Identification Number (NIN) in line with know-your-customer (KYC) requirements. The WHT deducted serves as a tax credit to the player. The measure aims to strengthen tax compliance, transparency, and accountability in the rapidly expanding gaming sector.
Key Points:
- The 5% tax reduces net winnings for players but ensures compliance with tax laws.
- It formalises the gaming sector and broadens Lagos's internally generated revenue base.
- Players bear the deduction, while the state gains additional tax revenue.
- This signals the government's intent to capture the growing gaming industry in the tax net.
- The timing, with immediate effect, requires swift operator compliance.
Lagos begins 5% withholding tax on gaming winnings, deducting at payout and requiring NIN for players as part of a revenue drive.
Sources: The Cable, Lagos State Lotteries and Gaming Authority
