New tax clarity aims to attract fintech and betting operators as stakeholders warn against over-taxation in growing market

The Federal Government has initiated fresh reforms on gambling tax regulations targeting Lagos and other major iGaming hubs, with the aim of boosting transparency and attracting more investment into Nigeria’s expanding digital betting sector. The move follows recent sports betting reforms announced in 2024, as government seeks to balance revenue collection with investor confidence.

The reform process, which began after consultations with industry operators and fintech firms in Lagos on Monday, is expected to address longstanding concerns over inconsistent tax regimes and overlapping federal and state-level regulations. Industry observers say the current system creates high compliance costs and legal uncertainty for licensed operators, making it difficult to project profit margins or plan long-term expansions.

Nigeria’s gambling sector has grown rapidly in recent years, driven by a young population, strong football culture, mobile-first habits and a thriving fintech ecosystem. However, stakeholders maintain that growth alone is not enough to guarantee investment. “Operators need clear licensing rules, consistent tax obligations and robust player protection standards,” a senior official at a leading betting company told our correspondent. Financial service providers have also stressed that improved guidelines would help them partner more confidently with gaming platforms.

According to experts, a well-defined tax framework could distinguish regulated brands from offshore or unlicensed competitors who often evade taxes and consumer protection laws. This clarity is expected to foster responsible gambling practices, encourage better technology adoption and improve customer service standards across the sector. However, analysts caution that excessive taxation might push players towards unregulated sites offering fewer safeguards and less revenue for government.

The Federal Inland Revenue Service (FIRS) has said any new system would focus on equitable revenue collection while supporting responsible gambling initiatives. “We are working towards a fair regime that encourages investment without exposing Nigerians to undue risk,” an FIRS spokesperson stated during the session. Industry groups welcomed the dialogue but warned that unresolved regulatory gaps—such as data protection and age verification—could still undermine investor confidence if not addressed alongside tax reform.

Source: https://www.pulse.ng/story/will-tax-reform-make-nigerias-gambling-sector-more-investable-2026061712133258082