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How Nigeria’s New Tax Rules Could Reshape Sports Betting

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Right Sports Betting Site

As 2024 comes to a gradual end and companies begin to make plans for the new year, the Nigerian sports betting industry is faced with a new year’s resolution which it didn’t make but has been imposed on it by this political administration- the dilemma of withholding tax regulations.

The introduction of this new tax regime could fundamentally alter the sports betting landscape, affecting everything from operator profits to punter behaviour and industry growth.

Once the new regulations come into effect on January 1, 2025, eligible transactions for winnings in i-gaming shall incur applicable rates of 5% for residents and 15% for non-residents.

For Managing Partner, WYS Solicitors & Legal Counsel Africa, Olafadeke Akeju, the fact that i-gaming is largely online means this new tax regime may cause of exodus of customers from licensed operators to illegal remote operators, due to the uncaptured and unprotected nature of the digital space:

“For those who are unlicensed and foreign operators, they will still be able to owe tax to players and offer better odds and better returns because there is no deduction or withholding tax. What this means is that licensed operators will lose customers to the illegal and remote operators, that is the likely implication, as there could be a significant drop in patronage once this withholding tax kicks off.”

Akeju also struggles to understand how this tax would apply to walk-in customers who mostly require age verification but may not require identity verification- especially because this regulation exempts over-the-counter transactions.

Velex Advisory Tax Expert, Jonathan Nwanze is also keen to see how this tax regime would be implemented, but he is more worried about the likelihood that the Tinubu administration, “could be creating a monster asking for remittance without the capacity to check it.”

Nwanze explains that the introduction of withholding tax is not novel, as it occurs in other countries in West Africa like Ghana. However, what makes Nigeria’s exceptional is the timing, investment and the market size:

“It’s not the first time it’s been introduced. However, some of the aforementioned markets cannot be compared to the Nigerian market in terms of size, Nigeria is way bigger. Some are more regulated because of the kind of structure they have. For instance, in Ghana, there are regions, not states and there is one revenue collection body. In Nigeria, we have states, but numerous bodies at various levels of government collect revenue.  I think the government has to invest in a lot of technology. If they are looking at getting a lot out of gaming, there must be investment in infrastructure,” Nwanze told sports and betting news site, SportsBoom.com.

What’s the rush?

Nigeria’s economy has been on a steady decline due to a number of factors including the poor timing of policies. For the implementation of withholding tax, it’s equally symptomatic of poor timing, grey areas and an inherent lack of understanding about the i-gaming ecosystem.

Akeju explains that in order for betting operators to comply with the provisions of the new tax regime, there must be upgrades across the betting platforms and since the software/ platform providers aren’t local, the operators need to get in line for an estimated 6 to 9 months before their platforms are upgraded.

She thinks it’s highly likely that: “we could potentially have a situation whereby on the 1st of January 2025, operators won’t be able to comply due to circumstances beyond their control.”

Apart from playing the waiting game, the cost of upgrading betting platforms equally poses a huge financial burden. Akeju explains that while larger betting operators own their betting platforms, the same cannot be said for smaller operators:

“The platforms which smaller operators use for gaming are owned by third parties with whom they have white label agreements. Hence, implementing the withholding tax right now is going to be a challenge for those operators as it would require them to pay for developers, pay for customization and pay for integration of the platforms to suit the regulation in question.”

An eternal optimist may ask, What about alternative revenue streams? Is there any that betting companies could explore to offset the impact of these new taxes? Akeju makes it clear that the operators are caught between a rock and a hard place- that’s because offering a new product translates to applying for another license for the product in question.

Sadly, the alternative products’ providers are primarily based in Europe, which means more cost would be incurred by the operator in Euros.

Akeju is very concerned about how the smaller operators will keep their customers and while she may not have a universal solution for the Nigerian i-gaming industry as a whole, she may have a potential solution for  bigger operators, but that entails their willingness to assume a sacrificial role by choosing to “absorb this withholding tax on behalf of their players or offer certain bonuses and promotions that could boost winnings so that players do not really feel the effect.”

A misconception & an opportunity

On Friday, November 22, 2024, the Supreme Court nullified the National Lottery Act and scrapped the National Lottery Regulatory Commission (NLRC). During a crucial meeting held days before the judgment, the Director General of the now defunct NLRC, Lanre Gbajabiamila,  made a profound statement about the assumption that the i-gaming industry is a billion-dollar industry:

“How do we know it’s a billion-naira industry? There’s no data to show. Anybody can say it’s worth billions of naira, but until we have proper data, we can’t safely say what the industry is worth.”

Just like Gbajabiamila, this is a perception which Nwanze seeks to correct, and he thinks it may have a lot more to do with this new regulation than we realize:

“The government appears to be keen on generating revenue, but the challenge lies with the timeline – Jan 2025 is not feasible. If you look at best practices as is the case in the UK- there is no collection of withholding tax and that’s because the responsibility of taxes should sit with the company that owns the business. The reason is that the companies make more profit than the players. If you look at the number of losses compared to winnings, you’ll be shocked at how high the former is compared to the latter. In fact, the way the business is structured, it’s from those losses that winnings are paid. I think the government should review its position and opt for more engagement regarding the nature, implementation, application and configuration of this plan.”

Now that the NLRC has been dissolved, there might be an opportunity for states that may choose to opt out of this tax and while the implementation has yet to play out, Nwanze thinks that some states may see exemption as an opportunity to attract more betting companies to their states.

Legal options & absence of meaningful stakeholder engagement

With all the negative hits that the Nigerian i-gaming industry has taken in 2024, is it simply at the mercy of the government policies/ regulations, or could legal options be explored to push back? Akeju explains that “the law is made for man and not vice versa.”

While she is hopeful that the government will do a 180 when it sees the negative impact this tax will have, as was the case in the most regulated market in the world- the UK; she is fearful of Nigeria’s reputation and pace when it comes to repealing laws and regulations.

Akeju recalls attempts made by stakeholders to dialogue with the government on this matter and narrates a scenario which is reminiscent of intentional exclusion until a decision was made:

“The association of Nigerian bookmakers engaged with the presidential committee on fiscal policies and tax reforms. We had a few meetings, but it appeared as though by the time the industry was aware of many of the decisions that were taken by the government, it was at an advanced stage. Now that it has been passed, efforts are still being made for a guidance note to clarify some of the grey areas.”

Akeju and Nwanze make their final appeal by asking the government to focus its taxation efforts on the operators and not the players to make for a more streamlined and better-defined application that is understood by all involved.

Conclusion

As Nigeria’s sports betting industry braces for the 2025 withholding tax storm, both legal and tax experts sound a unified alarm: taxing players instead of operators could backfire spectacularly.

With Akeju warning of an exodus to illegal operators and Nwanze questioning the government’s monitoring capacity, the consensus is clear – this rushed regulation could transform Nigeria’s gaming landscape into a wild west of unregulated betting.

The irony? In pursuing additional revenue, the government might end up with a smaller piece of an increasingly fragmented pie. As the countdown to January 2025 begins, the industry’s message is simple: hit pause, rethink the approach, and focus on operators, not players.

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Unveiling the Thrill of Online Casinos: Slots, Games, and More

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Online Casinos

The innovation of online casinos has transformed how people enjoy leisure and gaming activities. From anywhere and at any time, online casinos have opened their doors to literally everyone, ensuring that the most convenient and exciting kinds of entertainment are within reach.

Whether spinning the reels in popular slot games or plotting out the next move in poker, online casinos bring a virtual get-away like none other. For a deeper understanding of strategies, tips, and insights, one can look to resources such as blog.20bet.com, which provides very valuable information to make your gaming experience even better. Now, let’s get a closer look at the fascinating world of online casinos.

Online Casino Evolution

The journey of online casinos began in the mid-1990s with the advent of the Internet. Fast forward to today, and the industry has mushroomed into a multi-billion-dollar global phenomenon. But to what can its phenomenal popularity be attributed?

Ease of Access and Convenience

One of the major reasons why online casinos have prospered is the convenience they offer. It means that with a smartphone, tablet, or computer, players can play any time, anywhere.

Multitude of Games

Unlike land-based casinos, online casinos offer a plethora of games on their roster. From classic table games like blackjack and roulette, to creative slots with engaging themes, there’s something for every gamer’s taste.

Slot Games: Entertainment for All

Slot games are the most enjoyed amusement in the world of online casinos. The simplicity of the game, combined with appealing graphics and lucrative bonuses, has made it a favorite both for amateur and professional players.

Why Slots Are a Favorite Among People

Easy to Play: Slots are the easiest casino game to play, and there is absolutely no need for experience or strategies.

Creative Themes: Starting from mythology to adventure, slot games are designed with various themes that attract players.

Jackpots: Progressive slots boast of life-altering jackpots which grow with each new spin.

Features of the Best Slots

High RTP: Games with high RTP percentages offer a very good chance of winning.

Bonus Rounds: Look out for slots offering free spins, multipliers, and more.

Mobile Compatibility: Make sure it works on your device.

Table Games: Where Strategy and Entertainment Meet

Table games will satisfy those who want to feel some strategy with their luck. In these games, players will need more engagement and are particularly rewarding when well played.

Popular Table Games

Blackjack: A game of skill and strategy, players try to outdo the dealer without going over 21. Roulette: A very exciting game of chance in which gamblers bet on where the ball will land on a spinning wheel. Poker: From Texas Hold’em to Omaha, poker is all about bluffing, strategy, and calculated risks. Tips for Table Games Success Understand the Rules: First, understand the rules and strategies of the game.

Free Games to Practice: Many sites offer free versions to hone your skills.

Bankroll Management: Set limits and stick to them to avoid overspending.

Live Casino Games: Bringing Realism to Your Screen

The introduction of live dealer games has narrowed the gap between traditional casinos and online casino games. In these games, real dealers host the games, and it is broadcast in real-time for an authentic experience right in your living room.

Advantages of Live Dealer Games

Real-Time Interaction: Chat with dealers and other players to create a social atmosphere.

High Stakes: Many live games cater to high rollers looking for more intense gaming sessions.

Variety: Enjoy games like live blackjack, baccarat, and game show-inspired titles like “Crazy Time.”

Bonuses and Promotions: Maximizing Your Experience

Online casinos often attract players with enticing bonuses and promotions. These offers can significantly enhance your gameplay if used wisely.

Common Types of Bonuses

Welcome Bonus: A reward for signing up, often including deposit matches and free spins.

No Deposit Bonus: Get a small bonus without making an initial deposit.

Loyalty Programs: Earn points with every wager and redeem them for rewards.

How to Choose the Best Bonus

Read the Terms and Conditions: Understand the wagering requirements beforehand.

Check the Validity Period: Make sure that the time given by the bonus is sufficient enough to meet its requirements.

Focus on Your Favorite Games: Some bonuses are game-specific. Choose ones that suit your interests.

Responsible Gaming: A Key Aspect of Enjoyment

While online casinos are a source of entertainment, it’s essential to practice responsible gaming to ensure a positive experience.

Tips for Responsible Gaming

Set a Budget: Decide on a spending limit before you start playing.

Take Breaks: Avoid long gaming sessions to maintain a healthy balance.

Know your Limits: Don’t chase losses; it’s better to walk away and try another day.

Tools at the Player’s Aid

Most online casinos include features for self-exclusion, setting deposit limits, and reality checks that may enable responsible gaming.

Future of Online Casinos

With technology Burke, the online casino industry is bound to reach newer heights. Following are a few trends that are going to shape its future:

Virtual Reality Casinos

Just imagine being inside a virtual casino playing games and communicating with other players, as if you were sitting across from each other. This is the reality that VR technology is bringing into being.

Cryptocurrency and Blockchain

Cryptocurrencies, such as Bitcoin, are becoming increasingly popular. They provide quicker transactions with added security. Fairness in gaming is ensured through the transparency provided by blockchain technology.

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NFF Appoints Former Mali’s Manager Eric Chelle as Super Eagles Coach

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Eric Chelle Super Eagles

By Dipo Olowookere

The former manager of Mali’s national football team, Mr Eric Chelle, has been appointed as the new head coach of Nigeria’s Super Eagles.

The appointment of Mr Chelle was announced on Tuesday night by the Nigeria Football Federation (NFF).

The first job of the new coach will be to guide the home-base Super Eagles team to victory at the 2024 CAF African Nations Championship (CHAN) co-hosted by the trio of Kenya, Uganda, and Tanzania from February 1–28, 2025.

He will work with the current Super Eagles B coaching staff, which includes Daniel Ogunmodede, Fidelis Ilechukwu, and Olatunji Baruwa, who successfully guided the team through CHAN qualifiers.

The biennial football tournament is organised by the Confederation of African Football (CAF) and sponsored by an oil giant, TotalEnergies.

Mr Chelle would be expected to deploy his tactics to ensure a successful outing of the home-based Super Eagles at the competition and also revive the main team, according to the president of the NFF, Mr Ibrahim Gusau.

“We want whoever takes charge of the team to begin immediately, which is why the same coach will manage the CHAN Eagles.

“This allows us to identify promising home-based players who can contribute to the senior national team,” he stated.

Business Post reports that the new coach was favoured for the new job by the Technical and Development Sub-Committee of the federation and endorsed by the executive committee.

One of his biggest tasks will be to qualify the Super Eagles for the 2026 FIFA World Cup to be hosted by Canada, Mexico and the United States of America (USA).

At the moment, Nigeria occupies fifth position and will play the next qualifiers in two months’ time.

Mr Chelle led the Mali national team to quarterfinals of the 2023 Africa Cup of Nations. He is the latest foreign coach appointed by the NFF to manage the country’s national team.

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Arsenal, Liverpool in Carabao Cup Semifinal Action Live on GOtv

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Carabao Cup

The race for the first silverware of the 2024/25 season intensifies as Premier League leaders Liverpool and second-placed Arsenal will be in Carabao Cup semifinal action this midweek.

Arsenal will host Newcastle United in the first leg at the Emirates Stadium on Tuesday, while Liverpool travel to the Tottenham Hotspur Stadium on Wednesday. Both matches will be broadcast live on GOtv Channel 65 at 9 PM.

Fresh from their impressive 2-1 victory over Tottenham on Saturday, Newcastle will aim to build on their momentum and secure a favorable result ahead of the second leg at St. James’ Park. The Magpies have already defeated Arsenal 1-0 earlier this season, and another strong performance could leave the Gunners with a steep hill to climb in the second leg.

Newcastle will be without their influential captain, Bruno Guimarāes due to suspension, while Arsenal battle with illness issues in the squad which has seen Kai Havertz miss the last two matches.

Arsenal, who haven’t lifted the Carabao Cup in 31 years, view this competition as a vital chance for silverware, especially with their league title hopes fading.

On the other side of North London, Tottenham Hotspur face defending champions Liverpool, hoping to avoid a repeat of their 6-3 thrashing by their visitors just 17 days ago. Spurs have managed just one win in their last eight matches at home in all competitions—a narrow 4-3 victory over Manchester United in the quarterfinal. Their last taste of silverware came 17 years ago when they won this competition.

Meanwhile, Liverpool, who have lost just one match all season, are chasing an ambitious quadruple. A victory over Spurs on Wednesday would put them on the brink of securing a spot in the final at Wembley.

Football fans can enjoy all Carabao Cup matches, Premier League, Serie A, Laliga and Champions League action live by reconnecting or upgrading to the GOtv Super Plus package. Simply dial *288# to renew or upgrade your subscription.

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