Lottery Companies in Nigeria: Who Licenses Them After 2024
The Supreme Court moved lottery licensing to the states in November 2024. Who can legally run a lotto now, and what a valid Lagos licence covers.
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Lottery companies in Nigeria now answer mainly to state governments, not Abuja. On 22 November 2024 the Supreme Court nullified the National Lottery Act 2005, and the judgment confines the federal Act to the FCT. Anywhere else, a lotto operator needs a licence from the lottery board of the state it sells in, in the right licence category.
That is the question most "top 10" lists skip. A big name and a busy agent stall prove nothing; a state licence for the product being sold is what makes an operator legal.
What the Supreme Court decided about lottery regulation
The case was Suit No. SC/1/2008, A.G. Lagos State & Ors, brought by Lagos and other states against the Attorney-General of the Federation, the National Assembly and other states. A seven-member panel ruled unanimously.
The core reasoning is what moved the power. The court held that lottery is not trade or commerce, which the federal government can regulate, because a lottery does not entail an assured exchange of value and is "inherently speculative and risk-based". With that federal hook gone, lottery falls to the states.
Several states already had their own frameworks before the 2005 Act: Lagos, Akwa Ibom, Anambra, Cross River, Delta, Imo, Ogun, Ondo, Oyo and Rivers, according to AELEX's review of the judgment. Those laws now carry the weight.
Who licenses lottery companies in Nigeria after the ruling
The licensing body is the state lottery authority where the game is offered. The federal National Lottery Regulatory Commission was created by the Act the court struck down, so its practical remit shrinks to the Federal Capital Territory.
| Where the lottery is sold | Who licenses it (as of October 2026) | Legal basis |
|---|---|---|
| Lagos State | Lagos State Lotteries and Gaming Authority (LSLGA) | LSLGA Law of 2021 |
| Federal Capital Territory | Federal regime under the National Lottery Act 2005 | Act still applies in the FCT |
| Other states | That state's own lottery board or authority | The state's own lottery law |
Federal money structures have not vanished from view. The National Lottery Trust Fund, set up under the 2005 Act, still states that 50% of all proceeds must go to players as prizes and 20% to its fund for good causes. Read that as the federal scheme's design, not a rule binding state-licensed operators.
What a valid Lagos lottery licence looks like
In Lagos, any gambling, lottery or game of chance, online or on the street, needs a licence from LSLGA under the Lagos State Lotteries and Gaming Authority Law of 2021. Governor Babajide Sanwo-Olu assented to the consolidated law on 19 April 2021.
The detail that matters for anyone judging an operator: LSLGA does not issue one generic permit. It runs separate categories, and the operator must hold the one that fits what it sells. As of October 2026, LSLGA lists:
- a Public Online Lottery Licence for a lottery open to all participants;
- a Scratch Cards and Other Games Licence;
- a promotional competition licence, which applies only where the promotion does not qualify as a lottery.
So a company licensed for promotions is not thereby licensed to run a public lottery, and a scratch-card licence does not cover a daily draw.
How to check a lottery company before you stake
Start with the regulator, not the company's own website. LSLGA asks all punters in Lagos to check its list of registered and licensed lottery and gaming operators before staking. Outside Lagos, look to the lottery board of your own state; inside Abuja, the federal regime still applies.
For how the same rules play out on apps and websites, see our report on online lottery in Nigeria and its licensing.
Reader questions
How do you get a lottery licence in Nigeria?
You apply to the lottery authority of the state where you want to operate, in the licence category that matches your product. In Lagos that is the Lagos State Lotteries and Gaming Authority, which issues separate licences for public online lotteries, scratch cards and promotional competitions. The Federal Capital Territory is the one place where the federal Act still applies.
Is there any legal lottery in Nigeria?
Yes. Lotteries are legal where a state law permits them and the operator holds that state's licence. The Supreme Court ruling did not ban lotteries; it decided which level of government licenses them.
Which lottery company is best in Nigeria?
A large brand is not proof of a licence. The useful test is whether the company appears on the licensed-operator list of the state authority where you stake, which Lagos tells punters to check before every bet.
What is the real purpose of a lottery in Nigeria?
Under the federal scheme, part of every naira staked was meant for public causes as well as prizes. The National Lottery Trust Fund still describes a split in which half of proceeds go to players as prizes and a fifth to its fund for good causes.
Filed from these sources
- Lagos State Lotteries and Gaming Authority, Licensing Categories and Compliance in Lagos State, accessed 16 October 2026
- Lagos State Lotteries and Gaming Authority, Gaming & Lottery Laws in Lagos, accessed 16 October 2026
- AELEX Legal, Regulation of Lotteries in Nigeria: Review of the Supreme Court's Decision and its Implications, accessed 16 October 2026
- National Lottery Trust Fund, National Lottery Trust Fund, accessed 16 October 2026
- Afriwise, Supreme Court Declares National Lottery Act Invalid, accessed 16 October 2026
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