Supreme Court Grants States Power to Regulate Lottery
The Supreme Court of Nigeria has ruled that the National Lottery Act is unconstitutional. The ruling affirms that state legislative assemblies hold the authority to regulate lotteries and games of chance, including sports betting, within their respective jurisdictions rather than the federal government.
The judgment, delivered on November 22, 2024, is a culmination of a long-standing dispute between state and federal regulators.
The conflict over regulatory authority began in 2008 when Lagos State approached the Supreme Court, asserting that the National Assembly lacked the constitutional mandate to legislate on lotteries.
Lagos State argued that lotteries fall under “residual matters”, areas not explicitly listed under the federal government’s exclusive legislative powers.
This exclusive list includes 68 items, covering critical areas such as defence, banking, and the creation of new states. Lotteries, being absent from this list, were argued to be a state-level concern.
Lagos State’s request was for the court to clarify who should preside over lottery regulation, igniting a legal debate that spanned over a decade.
The Supreme Court’s seven-member panel agreed with Lagos State, finding that the National Lottery Act oversteps federal legislative boundaries.
The court’s ruling has significant implications for the Nigerian lottery industry, as it now allows states to independently regulate and license lottery operators.
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100% WELCOME BONUS UP TO ₦207.500Far-Reaching Implications for the Industry
Legal experts believe the ruling could reshape the Nigerian lottery landscape. Templars Law, a prominent Nigerian law firm, noted in a recent client note that the National Lottery Act will now only apply to the Federal Capital Territory (FCT), which is under direct federal control.
“The implications of this judgment are far-reaching as it has effectively redefined the Nigerian lottery industry,” Templars wrote.
“The National Lottery Act can no longer operate generally throughout the Federal Republic of Nigeria as it previously did.
“The Act will now only apply to Nigeria’s Federal Capital Territory (FCT), which falls under the legislative remit of the National Assembly.”
Lagos State has welcomed the court’s decision, with the Lagos State Lotteries and Gaming Authority (LSLGA) hailing it as a “significant milestone” for the gaming industry in Nigeria.
In a public statement, the LSLGA expressed optimism about the positive impact the ruling will have on the state’s economy and society.
“We look forward to seeing the positive impact it will have on our economy and society,” the statement read.
Samuel Rowland, COO of the LSLGA, also emphasised the broader constitutional implications of the ruling.
“This ruling highlights the importance of adhering to constitutional principles in legislative processes.
“It could prompt a re-evaluation of how other areas of law are legislated and enforced in Nigeria, potentially leading to further challenges regarding the balance of power between state and federal authorities.”
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200% Welcome Bonus Up to ₦100.000Parallels with Brazil’s Regulatory Disputes
A similar dispute is currently unfolding in Brazil, where state and federal regulators are at odds over the authority to license lottery and betting operators.
Rio de Janeiro’s state lottery regulator, Loterj, is actively disputing with federal authorities over its authority to issue national licenses.
On October 14, Loterj sought a preliminary injunction from Brazil’s Supreme Court to counter a federal lawsuit aimed at barring its licensees from operating beyond state borders. The case remains unresolved.
