Lagos Commences 5% Withholding Tax Deduction on Gaming Winnings

The Lagos State Government has officially commenced the implementation of a 5 percent withholding tax (WHT) deduction on all gaming winnings within the state.

The Chief Executive Officer of the regulatory authority, Are Bashir, announced the development via a newspaper advertisement on Thursday.

According to Bashir, the tax deduction aligns with applicable tax laws and regulatory directives governing the rapidly expanding gaming industry.

The new policy dictates that the 5 percent deduction applies to net winnings from licensed gaming platforms operating in Lagos and will be automatically deducted at the point of payout.

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“All licensed gaming operators in Lagos have been directed to comply immediately with the framework.

“Under the new arrangement, 5% of qualifying gaming winnings will be automatically deducted before payment is made to players and remitted to the Lagos State Internal Revenue Service (LIRS) as the statutory tax authority,” Bashir stated.

The state government emphasized that this measure is part of a broader drive to enhance tax compliance, transparency, and accountability within the sector.

To facilitate the process, players are now required to provide their National Identification Number (NIN) to fulfill Know-Your-Customer (KYC) requirements.

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Licensed operators are tasked with overseeing all deductions and ensuring remittances are made in accordance with regulatory guidelines.

Bashir also reassured players that proper records will be maintained to ensure transparency. “Players will receive their winnings net of the statutory deduction… The WHT deducted also serves as a tax credit to the player,” he added.

All licensed gaming operators in the state have been formally instructed to implement the deductions with immediate effect.