The Lagos State Government has announced the enforcement of a five percent withholding tax on gaming winnings from licensed platforms operating within its jurisdiction. The Chief Executive Officer of the Lagos State Lotteries and Gaming Authority, Are Bashir, highlighted this new policy in a public notice issued on a Friday, emphasizing that it will apply to players' net winnings and will be deducted at the point when payouts are made. This measure aims to ensure tax compliance among gaming operators and users, thereby contributing to the state’s revenue generation efforts.

Bashir directed all licensed gaming operators to adopt the new tax framework without delay, reiterating that the deductions will be taken directly from winnings before the players receive their payouts. The collected taxes will then be remitted to the Lagos State Internal Revenue Service, aligning with Nigeria's existing tax laws and directives that govern the gaming industry. This systematic deduction aims to streamline tax collection and reduce revenue leakage in the sector, which has seen significant growth in recent years.

This initiative is part of a broader strategy by the Lagos State Government to enhance transparency and accountability in the rapidly expanding gaming market. By instituting this withholding tax, the government is working to strengthen the regulatory framework of the industry while also encouraging responsible gaming practices among players. The move reflects a growing recognition of the importance of fiscal responsibility in managing the state's economic development as it relates to emerging sectors like gaming.