Nigeria’s gambling industry is booming. With an estimated market size of $1.8 billion, it is one of the largest in Africa, attracting local and international operators alike. However, before any operator can legally launch their services in the country, they must first obtain a gambling licence from the National Lottery Regulatory Commission (NLRC). Understanding the requirements, costs, and timeline for obtaining this licence is critical for anyone looking to enter the Nigerian gambling market.
Licensing Process and Costs
The process of obtaining a gambling licence in Nigeria is regulated by the National Lottery Act of 2005. Operators can apply for a licence to conduct various forms of gambling, including sports betting, lotteries, and online casinos. The cost of obtaining a licence varies depending on the type of gambling being offered, with sports betting licences costing approximately ZAR 1.5 million (around £70,000), while casino licences can be significantly more expensive.
The application process involves submitting a comprehensive business plan, proof of financial capability, security checks, and a clear outline of the software and payment solutions to be used. The entire process can take between 6 to 12 months, as the commission conducts extensive background checks and compliance assessments. While the timeline might be longer than in other African countries, such as Kenya, Nigeria offers a stable and growing market that makes the investment worthwhile.
Comparing Nigeria’s Licence Requirements with Other African Countries
When compared to countries like Kenya and South Africa, Nigeria’s licensing process is more costly and time-consuming. In Kenya, operators can expect to pay far less for a sports betting licence (around ZAR 500,000 or £25,000) and complete the process within 4 to 6 months. However, Nigeria's higher costs reflect its larger market and more developed infrastructure.
Additional Services Needed to Go Live
Once a gambling operator secures a licence, they must also establish essential services to ensure a smooth launch. These include:
- Banking and Payment Systems: Operators must work with Nigerian banks or mobile payment providers such as Paga and Flutterwave to ensure seamless deposits and withdrawals for users.
- Software Providers: Gambling software must be sourced from reliable companies to meet Nigerian standards. SBTech and Evolution Gaming are trusted providers used by many Nigerian operators.
- Customer Support: Providing multilingual, responsive customer support, particularly in English and Nigerian Pidgin, is essential to ensuring customer satisfaction and retention.
- Responsible Gambling Measures: Operators must also set up systems that allow users to limit their betting activity and access support for gambling addiction.