Tax: What is the tax take?

Nigeria applies a mixed tax basis. Withholding tax on player winnings is 5% for residents and 15% for non-residents under the Withholding Regulations 2024, with Lagos imposing an additional 5% WHT on net online betting winnings from 2026. Tax Act 2025 s.185(m) exempts player stakes from VAT from 2026-01-01, while standard VAT of 7.5% remains for other supplies. GGR-style levies include LSLGA's 2.5% sports betting sales levy, LSLGA's 10% monthly casino gaming tax, and the FSGRN 11% GGR Good Causes levy from 2026. Corporate income tax applies under Tax Act 2025. ## Application & License Fees The application fees are dependent on the type and class of application and further dependent on whether it is a National or State licence. For further details, see information in specific product sections B2C Gaming Operator Licenses in Lagos State: For operators intending to offer sports betting, casino games, or online gaming products directly to consumers, the licensing costs are significantly higher. Typical costs include: Application fee of ₦1,000,000 License fee: up to ₦100,000,000 – ₦200,000,000 depending on category Good Causes Levy: approximately 15% of Gross Gaming Revenue (GGR) ## FSGRN Licensing Structure and Costs for Market Entry For international operators entering Nigeria, the FSGRN framework has introduced a harmonized structure for multi-state gaming operations. Although licenses remain issued by state authorities, the FSGRN framework allows operators to access broader market recognition across multiple states. Typical Licensing Structure: Non-refundable application fee :₦5,000,000 Universal reciprocity license: ₦100,000,000 Mandatory security bond: ₦100,000,000 Annual renewal license Approximately: ₦10,000,000 – ₦20,000,000 Security Bond Requirement: Operators are typically required to maintain a ₦100 million security bond in favor of the regulator to ensure compliance with operational obligations, including: Player payout guarantees Regulatory penalties where applicable Responsible gaming compliance obligations