Nigeria’s Supreme Court Rules National Lottery Act Void, Grants Lottery Regulation to States

Nigeria’s Supreme Court ruled on November 22 that the country’s National Lottery Act is void, affirming that state legislative assemblies, rather than the federal government, should regulate lotteries and games of chance. This landmark decision ends a long-standing dispute over legislative authority and carries significant implications for Nigeria's gambling and lottery industries.

The tension between state and federal regulators dates back to 2008, when the Lagos State Government petitioned the Supreme Court to declare that the National Assembly lacked the authority to regulate or control lotteries. Lagos argued that lotteries fall under “residual matters”—areas not listed in the federal government’s exclusive legislative list. This list consists of 68 items reserved solely for the National Assembly’s jurisdiction, including defence, banking, and the creation of new states.

The case was initiated by Lagos State to resolve the question of whether the regulation of lotteries should fall under state or federal oversight.

The Supreme Court’s ruling, delivered by a seven-member jury, has far-reaching consequences. It effectively dismantles the broad application of the National Lottery Act across Nigeria, restricting its enforcement to the Federal Capital Territory (FCT).

“The implications of this judgment are far-reaching as it has effectively redefined the Nigerian lottery industry,” noted Templars Law, a prominent local firm, in a client advisory issued on November 25. “The National Lottery Act can no longer operate generally throughout the Federal Republic of Nigeria as it previously did. The Act will now only apply to Nigeria’s FCT, which is ordinarily within the legislative remit of the National Assembly.”

The Lagos State Government has welcomed the decision, with the Lagos State Lotteries and Gaming Authority describing the ruling as “a significant milestone for the gaming industry in Nigeria.” A spokesperson for the authority stated, “We look forward to seeing the positive impact it will have on our economy and society.”

Samuel Rowland, Chief Operating Officer of the Lagos State Lotteries and Gaming Authority, highlighted the ruling’s broader implications. “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,” Rowland remarked. He emphasized the importance of constitutional adherence in legislative processes.

This ruling not only reshapes the governance of lotteries in Nigeria but also underscores the ongoing complexities in the relationship between state and federal authorities. It sets a precedent that could influence other areas of legal and regulatory authority in the country.

Interestingly, the legal struggle in Nigeria mirrors a similar conflict in Brazil, where state and federal regulators are locked in a dispute over the jurisdiction of lottery and betting licenses. In Brazil, the Rio de Janeiro State Lottery (Loterj) is challenging a federal lawsuit aimed at prohibiting its licensees from operating outside the state. On October 14, Loterj sought a preliminary injunction from Brazil’s Supreme Court to maintain its authority to issue licenses for nationwide operations.

While the legal battle in Brazil continues, Nigeria’s resolution could provide a framework for other nations facing similar disputes over the delineation of state and federal regulatory powers.

By fLEXI tEAM