Nigeria Launches Its Gaming License

As Nigeria’s gambling industry experiences rapid growth, the government has taken a historic step by empowering states to regulate lottery and gaming activities within their jurisdictions. In this article, we will explore what Nigerian license offers, how to apply, and the opportunities it unlocks for operators seeking legal entry into Nigeria’s iGaming market.

Why Nigeria Launches Its Gaming License

Nigeria’s iGaming is experiencing significant growth, with approximately 60 million Nigerians–particularly those aged between 18 and 40–actively participating in sports betting. By 2025, the local online gambling sector is projected to generate approximately $707 million in revenue, with an annual growth rate of 5.07% expected through 2029.

In response to this growth, the National Lottery Regulatory Commission (NLRC) has introduced the Remote Operator Permit (ROP). This license enables foreign operators to offer gaming services to Nigerian players, capitalizing on the exponential growth of the country’s gambling market.

To obtain the ROP, operators must already hold a valid gaming license from an international regulatory authority. This permit streamlines the licensing process, allowing operators to enter the local market without establishing a local entity.

Who Regulates Nigeria’s iGaming Market

The NLRC is responsible for issuing, regulating, and overseeing Remote Operator Permit’s holders in Nigeria. This ensures that operators comply with Nigerian law and adhere to ethical standards, including anti-money laundering (AML), Know Your Client (KYC) policies, and responsible gaming practices.

What Can Operators Do with the Remote Operator Permit (ROP)

Holders of the Remote Operator Permit can:

• Advertise online gaming services to players in Nigeria, in compliance with advertising guidelines set by the NLRC.
• Offer casino games, bingo, slots, sports betting, and poker online games to Nigerian players.
• Use payment processing tools or services provided by the NLRC.
• Transfer profits out of Nigeria after paying all taxes owed via the NLRC's system and to Nigeria's tax authority (FIRS).
• Participate in affiliate programs.
• Operate in the country without the need to establish a local company.

How to Apply for a ROP in Nigeria

Obtaining the ROP process involves three key steps:

Application Stage

Operators submit the required documentation, and the NLRC conducts a due diligence review.

The necessary documentation includes:

• Application Letter: A formal letter stating the applicant’s intent to obtain a license.
• Operational Information: Details about game events, distribution channels, and marketing strategies.
• Proof of Financial Stability: Documents such as a two-year bank statement to demonstrate financial capability.
• Corporate Documentation: This includes the certificate of incorporation and corporate structure, responsible gaming, AML and KYC policies.
• Technical Documentation: Detailed documents on software and hardware specifications, player data policies, and testing by an NLRC-recognized lab.

Provisional Approval

Once the initial application is approved, the operator has 90 days to:

• Demonstrate operational capacity.
• Pay permit fees.
• Execute the Terms and Conditions for remote gaming.

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Post-Licensing Compliance

After obtaining the substantive permit, operators must integrate with the NLRC's Sentinel system, which monitors and processes all player transactions to ensure compliance with tax and regulatory requirements.

The entire process, from application submission to final permit issuance, typically takes 1 to 3 months, depending on the completeness and compliance of submitted documents.

How Much Does the ROP Cost

The cost of the ROP includes an annual license fee of $100,000 (he license is valid for five years). Payments must be made directly to the Federal Republic of Nigeria via the NLRC's TSA Government Account.

There is no application fee. However, license holders are required to pay a 4.5% tax on all player deposits, which is deducted at the transaction source through the Sentinel platform.

Additionally, operators can incur extra costs for technical compliance, such as testing and integration with the NLRC's systems.

Wrapping Up

The Remote Operator Permit presents an excellent opportunity for online gambling operators worldwide to expand their offerings into the rapidly growing Nigerian market. With a population exceeding 200 million and 3 million gamblers (officially) expected by 2029, this license enables operators to access a lucrative market and engage millions of potential players.

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