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Lagos court backs LSLGA in cases against three betting firms

Rajashree Seal
Written by Rajashree Seal

The Lagos State Lotteries and Gaming Authority (LSLGA) has published details of three High Court judgments delivered in June that upheld its powers under the Lagos State Lotteries and Gaming Authority Law 2021 to regulate betting operators offering services in Lagos.

The judgments, delivered in separate cases involving Zegaming Nigeria Limited, Africa Betting Company Nigeria Limited and Mozzartbet Services Limited, upheld the Authority’s powers to require operators to obtain state licences, pay statutory fees and levies, submit financial records for regulatory oversight and comply with Lagos gaming laws.

According to the public notice, the High Court held that gaming operators offering services to Lagos residents, including those operating online or remotely, must comply with the licensing, registration and tax requirements under Lagos State law.

Three operators found in breach of licensing requirements

The three suits were filed by the Authority against the operators, alleging that they had provided betting and gaming services in Lagos without obtaining licences under the Lagos State Lotteries and Gaming Authority Law 2021.

In the proceedings, the Authority relied on Sections 33 and 86(1) of the Lagos State Lotteries and Gaming Authority Law 2021, as well as Regulation 2 of the Online and Retail Gaming Regulations 2021, which set out the licensing requirements for betting and gaming operators.

It also sought confirmation of its powers under Sections 19, 25(1) and 71 to assess licence fees, gaming levies and the Good Causes Levy. In addition, it asked the court to affirm its authority under Sections 18(f) and 32(2) to inspect operators’ financial records and other documents required for regulatory oversight.

Zegaming case

On 2 June 2026, Justice A. M. Ipaye ruled in favour of LSLGA in its case against Zegaming Nigeria Limited.

The company did not enter an appearance or file a defence. The court held that it had offered betting services in Lagos without a licence issued under the Lagos State Lotteries and Gaming Authority Law 2021. It ordered the company to register with the Authority, pay all outstanding licence fees and levies, submit its financial records and cease operations until it complied with the Law.

Africa Betting Company case

On 17 June 2026, Justice Dr Basiru Oriyomi Olukolu ruled in favour of LSLGA in its case against Africa Betting Company Nigeria Limited.

The judgment referred to Section 35 of the Lagos State Lotteries and Gaming Authority Law 2021, which governs the grant, renewal and variation of gaming licences, and Section 50 of the Lagos State Lotteries and Gaming Authority (Amendment) Law 2024, which vests the collection of gaming levies in the Authority.

The court directed the company to obtain a licence issued by LSLGA, pay all outstanding licence fees and gaming levies, submit its financial records and cease operations until it complied with the requirements of the Lagos State Lotteries and Gaming Authority Law 2021.

Court dismisses Mozzartbet jurisdiction challenge

Unlike the previous cases, Mozzartbet Services Limited challenged the proceedings by filing a preliminary objection.

The company argued that it did not operate within the geographical territory of Lagos State, had no connection with the state’s laws and questioned both the territorial and subject matter jurisdiction of the Lagos High Court. It also disputed the applicability of the Lagos State Lotteries and Gaming Authority Law 2021 to its operations.

Justice A. M. Ipaye dismissed the preliminary objection, holding that the company’s activities fell within the scope of the law because its betting services were accessible to customers in Lagos.

The judgment also upheld the Authority’s powers to license operators, collect licence fees, gaming levies and the Good Causes Levy, and require operators to provide financial records. It referred to Regulations 11(1) and 12 of the Casino and Gaming Regulations 2021 relating to the Good Causes Levy, together with Regulations 22 and 23 governing record keeping.

Mozzartbet was ordered to obtain a Lagos licence, pay outstanding fees and levies, submit its financial records, cease operations until it complied with the law and pay ₦500,000 (approximately US$330) in costs.

Public notice sets out the court’s findings

In its public notice, LSLGA said the High Court had held that operating, maintaining or promoting sports betting, casino or online gaming services in Lagos without a valid operating licence issued by the Authority is unlawful.

The public notice stated that accepting wagers from Lagos residents places operators within the Authority’s regulatory jurisdiction, regardless of where their administrative offices or servers are located.

According to the notice, the judgments affirmed LSLGA’s powers to assess and recover licence fees, gaming levies, penalties and the Good Causes Levy, as well as inspect and audit operators’ financial and operational records. It also stated that the High Court issued perpetual injunctions restraining non-compliant operators from continuing their operations until they comply with the requirements of the Lagos State Lotteries and Gaming Authority Law 2021.

Regulatory framework updates

The publication of the High Court judgments follows recent regulatory updates issued by LSLGA under the Lagos State Lotteries and Gaming Authority Law 2021 after the Supreme Court’s November 2024 judgment reaffirmed state jurisdiction over gaming operations.

On 20 July 2026, the Authority issued a public notice outlining changes to its regulatory framework. It announced that Global Lab had been recognised as an accredited testing laboratory within LSLGA’s regulatory framework from July 2026.

According to the notice, the updated framework requires gaming operators and B2B providers to comply with revised technical certification requirements. The Authority said the measures form part of its framework for fiscal transparency, anti-money laundering safeguards and the traceability of financial transactions.

Existing operators and B2B providers are required to transition to the revised framework through a six-month implementation programme covering operator registration, technical testing, certification and the migration of gaming systems to approved standards.

The court rulings also follow LSLGA’s enforcement action announced in April, when the Authority identified 59 illegal and unlicensed gaming operators conducting gaming activities without the required state approvals. At the time, it urged the public to avoid using those platforms, warning of potential risks including fraud, non-payment of winnings and the absence of consumer protection.

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