A bill for a law that specifies the payment of N20 Million license fee for the operators of lottery, pools and betting in Lagos State is being considered by the State House of Assembly.
The Bill, entitled; “Lagos State Lotteries And Gaming Authority Bill 2020” went through a public hearing on Friday 14th August 2020 at the State House of Assembly.
According to the bill, “before a license is granted to an operator, the Authority shall be satisfied that the applicant is a registered company in Nigeria with a minimum share capital of N20,000,000 (Twenty Million Naira) or as may be directed by the Authority.”
It also specified that the local content shareholder shall abide by the regulations, policies, terms, and conditions issued by the Authority.
It was also revealed at the public hearing that the new bill, when it becomes law, will consolidate all the laws in the sector and repeal existing laws such as the Lagos State Lotteries (Amendment) Law 2008, the Lagos State Lotteries Law (2004), and the Casino and Gaming Regulatory Authority Law (2007).
Others are Casino and Gaming Regulations (2007), Pools Betting Control Law (2003), and Pools Betting Tax Law (2003).
The Speaker of the House, Chief Mudashiru Ajayi Obasa, who was represented by the Deputy Speaker, Alhaji. Wasiu Sanni-Eshinlokun said in his keynote address that the legislative functions and the legislature constitute the bedrock of democracy.
“For us to achieve the essence of democracy, the legislature must be in tune with the people.
“This underscores the essence of the public hearing. The worldwide gaming is worth $200 Billion. Several Nigerians are involved in games and sports bettings.
“Its addictive nature calls for caution, and it is our view that the 2008 lottery law needs an amendment as the bulk of the game are done on mobile gadgets,” he said.
The Majority Leader of the House, Mr. Sanai Agunbiade, who did an overview of the Bill, emphasized that the Bill, which has 109 Sections with three regulations, is meant to establish Lagos State Lottery and Gaming Authority and regulate all gaming activities and other connected purposes.
The State’s Commissioner for Finance, Dr. Rabiu Olowo, said in his comments that a lot had changed in the Nigerian gaming sector in the last ten years and that most of the people involved were youths.
“The future of gaming in Nigeria is bright. The regulations are very robust. The Bill addresses cybersecurity and addresses the concerns of many people. I want to urge all stakeholders to take it seriously,” he said.
The Chairman of the House Committee on Finance, Mr. Rotimi Olowo said in an interview that he was moved by the response of the stakeholders and the operators that attended the event.
Mr. Olowo, representing Shomolu Constituency One, added that the bill was meant to consolidate gaming and virtual lottery in the State.
“We have different licenses for individual products in the sector. The people have ventilated their opinions and we will work on them.
“The law is not meant for the operators alone, it is also meant for the regulators, we will look into all the areas.
“They are talking about the service charge of 3%, and they say it is small, but the sector is huge. We are not talking about digging into their data, but they should give us correct data,” he said.
The lawmaker said that the Bill would help the State to gather enough money that would be used in the health sector, environment, and even the sports sector.
“It has about 109 sections and each of the sections is not talking about the same thing; some talk about the lottery, gaming, and others.
“We want to have all the laws in one place, so we will look at their positions and work on it.
“The issue of N20 Million would be looked into by the regulators. We would look at the socioeconomic reality and allow sanity into that sector.
“Some funny guys who are into yahoo come into the business, and some of them are involved in money laundering.
“Many Nigerians want to come into the sector, but they don’t have the wherewithal.
“So, we will not protect foreigners to the detriment of Nigerians. We can reduce the percentage, not that somebody who has the money will just come into it and we will allow Nigerians to suffer,” he said.
He explained that the State would be going into virtual gaming and that this has a lot of potentials for the people of Lagos, adding that they would make sure that this didn’t deter investors or discourage the residents of the sytate.
He revealed that the Lagos Lottery Board was building a fire station in Apapa and that this will be replicated in other parts of the State.
One of the stakeholders at the event, Mr. Adebagun Nojeem from Lagos Pool Promoters requested that the stakeholders in the gaming sector should be involved in the State Lottery Board and that the issue of N20 Million share capital should be looked into.
“The issue of N20 Million share capital should be looked into. It would have a retroactive effect on the companies that have been registered. The pool is a game of senior citizens. With the new capital base, we may go under.
“The 10% charges on sales should be reduced to about 2.5%. The penalty of N2.5 Million should be reduced to 1 Million or N500,000 and the issue of imprisonment should be removed,” he said.
Also speaking, Mr. Tokunbo Akande from the Lagos Internal Revenue Service said that licensing fees or royalties should be used in the bill instead of taxes and that there should be room for dispute resolutions in the bill.
Mr. Chima Onwuka from the Nigerian Licenced Lottery Operators said that the taxation and levies in the sector were becoming multiple, and called for the elimination of multiple taxations.
He said that the investors and operators were in the business to make money.
Ibukunoluwa Temitope
