The Nigerian Government Proposes Sports Betting Industry Tax Scheme
The Nigerian Federal Government is planning to introduce a tax scheme for the sports betting industry in the country. Despite the economic challenges, Nigerians spend billions of dollars on betting each year. This was revealed by Bello Maigari, the executive secretary of the National Lottery Trust Fund (NLTF), during the biennial national gaming conference organized by the National Lottery Regulatory Commission (NLRC) in Lagos.
Growth of Online Sports Betting in Nigeria
Maigari highlighted the exponential growth of the online sports betting sector in Nigeria. He stated that the global online betting market was estimated to be worth over $50 billion as of September 2021 and has continued to grow. In Nigeria, millions of citizens engage in various forms of online gaming and betting, making it the largest betting market in Africa. Currently, there are over 65 million active participants in online sports betting in Nigeria, with an average daily spending of $15. Each day, 14 million bets and payments are made online in the country. The revenue from the online betting sector alone is projected to reach over $256 million by the end of 2023 and is expected to experience an annual growth rate of nearly 10% to surpass $366 million by 2027.
Call for Taxation and Framework
Maigari emphasized the need for the Federal Government to create a framework that encourages the sports betting industry to pay taxes in Nigeria. He believes that by establishing clear and equitable tax regulations, both local and international operators can operate within the regulatory framework and contribute to the country’s tax revenue. This will create a level playing field and generate benefits from their presence while safeguarding the citizens. The taxation of the sports betting sector is crucial and cannot be overstated.
The Nigerian government’s proposed tax scheme for the sports betting industry reflects the significant growth and financial impact of online sports betting in the country. With millions of active participants and a projected revenue of millions of dollars, taxation becomes a crucial aspect to regulate the industry and contribute to the national economy.
Keywords: Nigerian Federal Government, sports betting industry, tax scheme, National Lottery Trust Fund (NLTF), National Lottery Regulatory Commission (NLRC), online sports betting sector, revenue, tax regulations, financial impact