The Lagos State Lotteries and Gaming Authority has directed mobile network operators, including MTN, Airtel, Globacom, and 9mobile, along with licensed value-added service providers, to conduct a compliance check.

The MNOs are expected to, within 30 days, confirm that gaming businesses using their platforms in Lagos are properly licensed and up to date on tax obligations.

The directive requires affected companies to provide transaction records, carrier billing data and revenue sharing information for gaming operators covering the period from November 22, 2024, to the date of the authority’s public notice. LASG also wants MNOs and VAS providers to stop onboarding gaming businesses that cannot demonstrate valid state licensing and to suspend existing gaming services that are not duly authorised.

Going forward, mobile network operators, VAS aggregators and VAS providers must verify the licensing and gaming tax compliance status of every gaming operator using their platforms to offer services in the state.

LASG said the records would be used to determine the gaming taxes, statutory levies and other payments due from affected operators, including applicable penalties and interest.

The requirements place additional compliance responsibilities on telecommunications companies and technology intermediaries that facilitate gaming services, even where they are not the companies directly operating the betting or lottery businesses.

“The Authority hereby clarifies that a licence, authorisation or approval issued by the Nigerian Communications Commission (NCC) for telecommunications or VAS activities does not constitute a licence or authorisation to conduct or facilitate lottery, betting or gaming activities in Lagos State,” it stated.

LASG also clarified that the involvement of a telecom operator, VAS aggregator, payment channel or carrier billing platform does not remove the requirement for the underlying gaming business to hold a valid licence recognised by the state regulator.

The authority said the compliance directive is backed by provisions of the Lagos State Lotteries and Gaming Authority Law 2021, which restrict the operation and facilitation of gaming activities without the required authorisation.

Section 33(3) of the law prohibits a person without a subsisting licence or authorisation from operating or conducting gaming activities, deploying gaming equipment, managing or accepting wagers, renting property, employing personnel or advertising for gaming activities in Lagos State.

The notice also drew attention to Section 101(5), which provides that where an offence committed by a company is established to have occurred with the consent or connivance of a director, manager, secretary or other principal officer, or is attributable to that officer’s neglect, the individual and the company may both be held liable.

The authority therefore advised directors and principal officers of telecommunications companies, VAS aggregators and other intermediaries to exercise due diligence to ensure their platforms are not knowingly or negligently used to facilitate unlawful gaming activities.

It warned that after the 30-day compliance period expires, it would issue the appropriate statutory notices and pursue available regulatory and enforcement measures against operators and entities found to be non-compliant. (The Guardian)