The Supreme Court of Nigeria ruled that the country's "National Lottery Act" is invalid, and the state legislatures, rather than the Nigerian federal government, should regulate lotteries and gambling games.
The tension between state and federal regulatory agencies dates back to 2008, when the Lagos State government applied to the Supreme Court of Nigeria, requesting it to recognize that the National Assembly has no authority to regulate or control Nigeria's lotteries, as "lotteries" are considered residual matters.
This means that gambling and lotteries are not included in the exclusive legislative list of the federal government, which covers policies and jurisdictions governed by the federal government. This list has 68 items exclusively for the legislation of the National Assembly, including sensitive national areas such as defense, banking, and the establishment of new states.
The case was brought by the Lagos State government, asking the court to interpret who should oversee lottery regulation.
The ruling has far-reaching implications, redefining Nigeria's lottery industry
The ruling was made by a jury of seven on November 22, having a profound impact on Nigeria's gambling and lottery industries.
Local law firm Templars law stated in a client report on November 25: "The ruling is far-reaching as it essentially redefines the Nigerian lottery industry."
The notice states: "The 'National Lottery Act' no longer applies universally across the Federal Republic of Nigeria as before. The act now only applies to the Federal Capital Territory of Nigeria, which is usually within the legislative jurisdiction of the National Assembly."
The Lagos State government celebrated this move, with the Lagos State Lottery and Gaming Authority calling the ruling "a significant milestone in the Nigerian gaming industry."
The statement said: "We look forward to seeing its positive impact on our economy and society."
Samuel Rowland, Chief Operating Officer of the Lagos State Lottery and Gaming Authority, said the ruling highlights the importance of adhering to the constitution in the legislative process.
"This ruling may also prompt a reevaluation of the legislative and enforcement methods in other legal areas of Nigeria, and could lead to more legal challenges regarding the distribution of powers between state and federal authorities."
State and federal regulatory agencies in Brazil are embroiled in a similar dispute
The state and federal regulatory agencies in Brazil are also struggling to deal with a similar dispute, namely whether the Rio de Janeiro State Lottery Regulatory Agency (Loterj) can issue lottery and gaming licenses, enabling operators to provide services nationwide.
On October 14, Loterj applied to the Supreme Court for a preliminary injunction, dismissing the government's lawsuit prohibiting its licensees from operating outside the state. This legal battle is still ongoing.
