The Lagos state government has commenced the implementation of a five percent withholding tax (WHT) deduction on gaming winnings.
In a newspaper advert on Thursday, Are Bashir, chief executive officer (CEO) of the authority, said the deduction is in line with applicable tax laws and regulatory directives governing the industry.
According to the statement, the deduction applies to net winnings from licensed gaming platforms operating within the state and will be made at the point of payout.
“All licensed gaming operators in Lagos have been directed to comply immediately with the framework,” Bashir said.
“Under the new arrangement, 5% of qualifying gaming winnings will be automatically deducted before payment is made to players and remitted to the Lagos State Internal Revenue Service (LIRS) as the statutory tax authority.
“According to the State Government, the measure forms part of Lagos’ broader drive to strengthen tax compliance, transparency, and accountability in the rapidly expanding gaming sector.”
The CEO said players must provide their national identification number (NIN) in line with know-your-customer (KYC) requirements, while licensed operators will oversee all deductions and remittances in accordance with regulatory guidelines.
“Players will receive their winnings net of the statutory deduction, with proper records maintained for transparency. The WHT deducted also serves as a tax credit to the player,” he added.
Bashir said that all licensed gaming operators in Lagos state have been formally directed to begin implementing the deductions with immediate effect.
