Nigeria Supreme Court rules in favour of states to regulate lottery
Tensions between the state and federal regulators date back to 2008 when the Lagos state government approached the Supreme Court of Nigeria asking for it to acknowledge that the national assembly lacks the power to regulate or control lotteries in Nigeria, because ‘lottery’ is considered a residual matter.
By this it meant gambling and lottery is not included in the federal government’s exclusive legislative list which includes policies and jurisdictions it resides over. The list has 68 items that are exclusively reserved for the national assembly to legislate upon. It includes nationally sensitive areas like defence, banking and the creation of new states.
The case was brought about by the Lagos state government seeking for the court to interpret who should preside over lottery regulation.
Ruling has “far reaching” implications and redefines lottery in Nigeria
The ruling was handed down by a seven-member jury on 22 November and has far-reaching implications for gambling and lottery in Nigeria.
“The implications of this judgment are far reaching as it has effectively redefined the Nigerian lottery industry,” local law firm Templars law said in a client note dated 25 November.
“The National Lottery Act can no longer operate generally throughout the Federal Republic of Nigeria as it previously did,” the note said. “The Act will now only apply to Nigeria’s FCT (Federal Capital Territory), which is ordinarily within the legislative remit of the national assembly.”
The move has been celebrated by the Lagos state government, while the Lagos State Lotteries and Gaming Authority described the ruling as “a significant milestone for the gaming industry in Nigeria”.
“We look forward to seeing the positive impact it will have on our economy and society,” the statement said.
Samuel Rowland, COO for the Lagos State Lotteries and Gaming Authority, said the ruling highlighted the importance of constitutional adherence in legislative processes.
“This ruling could also prompt a re-evaluation of how other areas of law are legislated and enforced in Nigeria, potentially leading to more legal challenges regarding the distribution of powers between state and federal authorities.”
Brazil’s state and federal regulators locked into similar dispute
Brazil’s state and federal regulators are grappling with a similar dispute over whether Rio de Janeiro’s state lottery regulator (Loterj) can award lottery and betting licenses that enable operators to provide their services nationally.
On 14 October Loterj requested a preliminary injunction from the Supreme Court to reject a lawsuit by the government seeking to ban its licensees from operating outside the state. The legal battle is ongoing.