Lagos Gaming Regulator Orders Telcos to Audit Operators’ Compliance

The Lagos State Lotteries and Gaming Authority has directed mobile network operators (MNOs) and licensed value-added service (VAS) providers to audit gaming businesses using their platforms to ensure compliance with state licensing and tax requirements.

The directive gives affected telecommunications companies 30 days to verify that gaming operators offering services in Lagos hold valid licences and have fulfilled their applicable tax obligations.

The authority named MTN, Airtel, Globacom and 9mobile among the mobile network operators covered by the directive. It also requires the submission of transaction records, carrier billing data and revenue-sharing information relating to gaming operators from November 22, 2024, to the date of its public notice.

According to the authority, the records will help determine outstanding gaming taxes, statutory levies, penalties and interest payable by affected operators.

The directive also requires telecommunications companies and VAS providers to stop onboarding gaming businesses that cannot demonstrate valid state licensing. Existing gaming services that lack the necessary authorisation must be suspended.

Going forward, mobile network operators, VAS aggregators and VAS providers are expected to verify the licensing and tax compliance status of every gaming operator using their platforms to offer services in Lagos.

The authority stressed that telecommunications approvals issued by the Nigerian Communications Commission (NCC) do not authorise companies to conduct or facilitate lottery, betting or gaming activities in Lagos State.

It further clarified that the involvement of telecom operators, payment channels, carrier billing platforms or technology intermediaries does not exempt gaming businesses from obtaining the required state licences.

The directive is backed by the Lagos State Lotteries and Gaming Authority Law 2021. Section 33(3) prohibits individuals and businesses from conducting or facilitating specified gaming activities without the required licence or authorisation.

The authority also highlighted Section 101(5), which provides for potential liability for both a company and its directors, managers, secretaries or other principal officers where a corporate offence is committed with their consent or connivance, or is attributable to their neglect.

It therefore urged directors and principal officers of telecommunications companies, VAS aggregators and other intermediaries to exercise due diligence to prevent their platforms from being used knowingly or negligently to facilitate unlawful gaming activities.

The regulator warned that, following the 30-day compliance period, it would issue appropriate statutory notices and pursue available enforcement measures against entities found to be non-compliant.

For compliance teams, the directive underscores the need for stronger third-party due diligence, licence verification, tax compliance checks and transaction monitoring. Telecommunications companies and technology intermediaries may need to review onboarding procedures, maintain up-to-date records of gaming partners and establish processes for promptly suspending unauthorised services.

The development also highlights the importance of distinguishing federal telecommunications authorisation from state-specific gaming regulatory requirements.

Affected organisations should review their existing gaming partnerships, assess potential tax and licensing exposures, preserve relevant transaction records and ensure that compliance responsibilities are clearly assigned to appropriate management personnel.

The regulator’s action signals increased scrutiny of the wider network of businesses that enable gaming services, placing greater emphasis on accountability across the gaming and telecommunications value chain.