The Director-Normal of the Cross River State Lotteries and Gaming Company, Mr. Michael Eja, has projected that the newly launched reciprocity licensing framework of the Federation of State Gaming Regulators of Nigeria (FSGRN) will considerably broaden income streams for state governments whereas boosting investor confidence in Nigeria’s gaming sector.
Talking with journalists in Lagos, Eja defined that the federation, which at present has 25 member states, designed the reciprocity system to take away duplication of licensing necessities, enhance regulatory effectivity, and foster a unified funding local weather for operators.
Based on Eja, the brand new framework requires that any license issued have to be collectively endorsed by all member states.
This enables gaming operators to run companies seamlessly throughout the federation with out making use of for a number of licenses in several jurisdictions.
He famous that the revenue-sharing association ensures that each one states profit financially whereas nonetheless retaining their powers of regulation, monitoring, and enforcement underneath state legal guidelines.
“The true innovation right here is within the income mannequin.
“By harmonising licensing and sharing revenues, states will see a measurable enhance in internally generated income (IGR) whereas offering readability and certainty to traders,” Eja acknowledged.
Gaming income potential
The Cross River DG stated the framework has the potential to rework the gaming sector right into a multi-billion-naira income supply for sub-national governments, given the business’s speedy progress and powerful investor urge for food.
- He urged state governors, attorneys-general, and lawmakers at each the state and federal ranges to offer their full help, stressing that the initiative may place Nigeria as one in all Africa’s main regulated gaming markets.
- Eja known as on banks, telecommunications corporations, and meals & beverage corporations planning promotional campaigns through the festive interval in Cross River State to acquire the required license from the Company earlier than commencing such actions.
“This measure is to ensure correct regulation, safeguard shopper pursuits, and forestall avoidable litigation,” he stated
What it is best to know
Till lately, the foundations round gaming (lotteries, sports activities betting, casinos, and many others.) in Nigeria weren’t properly outlined. Completely different states had totally different licensing guidelines.
An operator who wished to run in lots of states needed to apply individually in every state. That meant extra charges, extra paperwork, extra ready.
As an example, acquiring a licence from the Nationwide Lottery Regulatory Fee (NLRC) was inadequate to function or stick with it gaming or lottery enterprise in Lagos State with out acquiring a corresponding licence from the Lagos State Authorities underneath the provisions of the Lagos State Lotteries and Gaming Authority Legislation 2021.
Part 33(3) of the 2021 Legislation prohibits any individual from working or conducting any sport of likelihood in Lagos State with out acquiring a licence or authorisation from the Lagos State Lotteries and Gaming Authority.
- In November 2024, the Supreme Courtroom dominated that the Nationwide Lottery Regulatory Fee (NLRC) not has the facility to control lotteries and gaming throughout Nigeria, limiting its utility to the Federal Capital Territory and granting states the authority to control lotteries.
- To convey order to the chaos that adopted, about 25 states got here collectively to type the Federation of State Gaming Regulators of Nigeria (FSGRN). Their purpose was to work collectively to create a system that’s honest, clear, and easy.
- The FSGRN launched the Subnational Reciprocity Licensing Framework, introducing a single license known as the “Common Reciprocity Certificates (URC).” As a substitute of making use of individually in every state, a gaming operator wants only one URC that works throughout all states which can be a part of the FSGRN.
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