The sports betting industry is thriving all around the world, employing more than 200,000 people across 25,000 businesses. The global industry continues to grow due to increased demand, better betting options and regulatory changes.

The Nigerian sports betting industry has been growing at a rate of more than 6 per cent per year, reaching an estimated $294.20 million US dollars in 2024. However, things could be about to take a dramatic shift as lawmakers in the country are considering whether to prohibit sports betting activities in future.

In this post, we discuss the reasons why sports betting could soon be banned within Nigeria and what this would mean for the industry and the wider economy in the country.

Sports betting is popular in Nigeria and is on the rise

Nigeria has a younger demographic than is typical in many other parts of the world, suggesting there are more technologically savvy young adults and adults interested in engaging with online sportsbooks. Many others also enjoy playing bets with traditional bookmakers. They may bet on regional games or international sporting competitions such as the football World Cup.

It has been estimated that there are around 60 million people in the country between 18 and 40 years of age that enjoy participating in sports betting activities. Without prohibition of sports betting activities, it is likely that this figure would continue to increase at a fast pace. The success of gambling in the country is mirrored elsewhere around the world as new online casinos are launched on an almost weekly basis in Canada, the US and the UK. These countries all have tough but fair regulations in place to ensure both sports betting and online casinos are ran fairly, the players are safe, while the state also takes a substantial cut, providing a boost for the economy.

Who is responsible for regulating sports betting in Nigeria?

It is the National Lottery Regulatory Commission (known as NLRC) that is responsible for the licensing and regulation of all lottery and gambling activities in the West African country. The commission was founded in 2005, employs more than 1,600 members of staff and is run by Director-General Lanre Gbajabiamila.

What has been suggested as changes to Nigeria’s sports betting regulations?

In February 2024, Nigeria’s House of Representatives had to address the misconceptions in the media regarding a supposed ban on sports betting in the country. A bill had recently been drafted by the house, supposedly calling for a ban based on the mental health effects of gambling.

However, it appears that the aim of the bill had been misinterpreted and it instead called for the NLRC to optimise its compliance procedures and create a simpler, safer environment for bettors and stakeholders.

Rather than changing the law to ban sports betting. The House of Representatives are instead asking the NLRC to make changes to their current processes to help ensure the rules set out by the Lottery Regulatory Commission Act 2005 are being abided by.

The concern is that there are too many gambling operators in the country that are flying under the radar, failing to protect their customers from harm with poor practices and not holding to current licensing for the location they are in.

There is recognition of the positive impacts of regulating and permitted sports betting can have. For instance, there are economic benefits through increased tax revenues and the increased job opportunities provided by sports betting shops. There is also the risk that by banning sports betting in law, unscrupulous operators will continue to offer betting activities without being overseen by a regulator, putting users at risk of fraud and financial crime.

Regional differences in sports betting in Nigeria – north and south divide

News reports from October 2024 have highlighted a difference in the acceptance of sports betting in different areas of the country. The betting industry has grown rapidly in recent years and this has included areas that are governed by Islamic laws known as Sharia.

The Northern city of Kano is one such location governed by Sharia law. Sharia was first introduced into the city of Kano in the year 2000, and was also introduced to 11 other Muslim-majority northern states. Under this law the act of gambling is not permitted. As a consequence, sports betting shops in Kano have been facing closure.

The southern half of the country is not governed by this type of law and therefore does not face the same restrictions.

What lies ahead for the sports betting industry in Nigeria?

It appears that the bill presented by the House of Representatives earlier in 2024 was widely misinterpreted by the media. Rather than outright banning sports betting activities, the government is seeking better regulation of the industry and protection for consumers.

Therefore, in regions where gambling is permitted, we are likely to see sports betting continue to grow. Also, more consumers may choose to make use of online sportsbooks as access to smartphones and reliable internet connections continues to widen.