The Director-General of the Cross River State Lotteries and Gaming Agency, Mr. Michael Eja, has projected that the newly introduced reciprocity licensing framework of the Federation of State Gaming Regulators of Nigeria (FSGRN) will significantly expand revenue streams for state governments while boosting investor confidence in Nigeria’s gaming sector.
Speaking with journalists in Lagos, Eja explained that the federation, which currently has 25 member states, designed the reciprocity system to remove duplication of licensing requirements, improve regulatory efficiency, and foster a unified investment climate for operators.
According to Eja, the new framework requires that any license issued must be jointly endorsed by all member states.
This allows gaming operators to run businesses seamlessly across the federation without applying for multiple licenses in different jurisdictions.
He noted that the revenue-sharing arrangement ensures that all states benefit financially while still retaining their powers of regulation, monitoring, and enforcement under state laws.
“The real innovation here is in the revenue model.
“By harmonising licensing and sharing revenues, states will see a measurable increase in internally generated revenue (IGR) while providing clarity and certainty to investors,” Eja stated.
The Cross River DG said the framework has the potential to transform the gaming sector into a multi-billion-naira revenue source for sub-national governments, given the industry’s rapid growth and strong investor appetite.
“This measure is to guarantee proper regulation, safeguard consumer interests, and prevent avoidable litigation,” he said
Until recently, the rules around gaming (lotteries, sports betting, casinos, etc.) in Nigeria were not well defined. Different states had different licensing rules.
An operator who wanted to run in many states had to apply separately in each state. That meant more fees, more paperwork, more waiting.
For instance, obtaining a licence from the National Lottery Regulatory Commission (NLRC) was insufficient to operate or carry on gaming or lottery business in Lagos State without obtaining a corresponding licence from the Lagos State Government under the provisions of the Lagos State Lotteries and Gaming Authority Law 2021.
Section 33(3) of the 2021 Law prohibits any person from operating or conducting any game of chance in Lagos State without obtaining a licence or authorisation from the Lagos State Lotteries and Gaming Authority.