Last Monday (November 22), Nigeria’s Supreme Court declared that the National Lottery Act was invalid and that state legislatures, not the federal government, should control lotteries and games of chance.
Tensions between state and federal regulators began in 2008 when the Lagos state government petitioned the Nigerian Supreme Court to recognize that the national assembly does not have the authority to control or regulate Nigerian lotteries because “lottery” is regarded as a residual matter.
This implied that the federal government’s exclusive legislative list, which covers its policies and jurisdictions, does not include gaming or lotteries. There are 68 items on the list that are only up for national assembly legislation. It covers topics that are important to national interests, such as finance, defense, and the establishment of new states.
The Lagos State Government filed the lawsuit, asking the court to decide who should oversee lottery regulations.
The ruling redefines the lottery in Nigeria and has “wide-ranging” effects.
A seven-member panel rendered the decision on November 22nd, and it has significant ramifications for lottery and gaming in Nigeria.
The local legal firm Templars law stated in a client note dated November 25 that “this judgment has far-reaching implications as it has effectively redefined the Nigerian lottery industry.”
The memo said that the National Lottery Act could no longer be used broadly across the Federal Republic of Nigeria as it once was. “The Act will now only apply to Nigeria’s Federal Capital Territory (FCT), which is typically under the national assembly’s legislative purview.”
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The Lagos State Lotteries and Gaming Authority called the decision “a significant milestone for the gaming industry in Nigeria,” and the Lagos State government has praised the action.
“We anticipate that it will have a positive effect on our economy and society,” the statement read.
The Lagos State Lotteries and Gaming Authority’s COO, Samuel Rowland, stated that the decision emphasized how crucial it is for legislative procedures to comply to the constitution.
“This decision may also lead to a reassessment of the laws and enforcement practices in other areas of Nigeria, which could result in additional legal challenges concerning the division of powers between state and federal authorities.”
State and federal officials in Brazil are embroiled in a similar battle.
In a similar disagreement, state and federal authorities in Brazil are debating whether Loterj, the state lottery regulator in Rio de Janeiro, has the authority to provide lottery and betting licenses that allow operators to offer their services across the country.
Loterj asked the Supreme Court for a preliminary injunction on October 14 to dismiss a government case that sought to prohibit its licensees from conducting business outside the state. The case is still pending.
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