Long-standing tensions between state and federal regulators can be traced back to 2008. That year, the Lagos state government approached Nigeria’s Supreme Court, seeking an acknowledgment that the national assembly lacks jurisdiction to regulate or control lotteries in Nigeria, as ‘lottery’ is viewed as a residual matter.
This implies that gambling and lotteries are not part of the exclusive legislative list of the federal government, which includes policies and areas under its jurisdiction. This list comprises 68 items reserved solely for the national assembly to legislate on, including critical national concerns like defense, banking, and the formation of new states.
The Lagos state government initiated the case to clarify who has the authority to regulate lotteries.
Implications of the Ruling and Its Impact on Nigeria’s Lottery Landscape
A seven-member jury delivered a ruling on 22 November, which carries significant consequences for gambling and lotteries in Nigeria.
“The implications of this judgment are extensive as it fundamentally reshapes the Nigerian lottery industry,” stated Templars law, a local law firm, in a client note dated 25 November.
“The National Lottery Act will no longer be operative across the entire Federal Republic of Nigeria as it once was,” the note indicated. “The Act is now restricted to applying solely to Nigeria’s FCT (Federal Capital Territory), which falls under the legislative purview of the national assembly.”
The decision was welcomed by the Lagos state government and deemed “a remarkable achievement for Nigeria’s gaming industry” by the Lagos State Lotteries and Gaming Authority.
“We are eager to witness the beneficial effects it will have on our economy and society,” the statement noted.
Samuel Rowland, the COO of the Lagos State Lotteries and Gaming Authority, emphasized that the ruling underscores the importance of adhering to constitutional norms in legislative actions.
“This decision might encourage a reevaluation of how other legal areas are legislated and enforced in Nigeria, potentially leading to additional legal disputes over power distribution between state and federal entities.”
Similar Regulatory Conflict Emerges in Brazil
State and federal regulators in Brazil are caught in a similar conflict concerning whether Rio de Janeiro’s state lottery regulator (Loterj) is permitted to issue lottery and betting licenses, enabling operators to extend their offerings nationwide.
On 14 October, Loterj sought a preliminary injunction from the Supreme Court to dismiss a lawsuit from the government aimed at restricting its licensees from operating beyond state lines. The legal proceedings continue to unfold.
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