The Lagos State Lotteries and Gaming Authority has given mobile network operators, including MTN, Airtel, Globacom and 9mobile, 30 days to verify the licensing and tax compliance status of gaming businesses using their platforms in the state.
The directive also covers licensed value-added service providers and other intermediaries that support gaming services.
Under the notice, affected companies must provide transaction records, carrier-billing data and revenue-sharing information relating to gaming operators from November 22, 2024, to the date of the notice.
The authority said the information would help determine gaming taxes, statutory levies and other payments due from affected businesses, including applicable penalties and interest.
The directive places additional compliance responsibilities on technology and telecommunications companies that facilitate gaming transactions, even when they do not directly operate the betting businesses.
Telecom operators must verify gaming licences
The authority has instructed operators and service providers to confirm that gaming businesses using their platforms hold valid licences recognised by Lagos State.
It has also directed them to stop onboarding gaming businesses that cannot demonstrate the required authorisation.
Existing gaming services that are not properly authorised are to be suspended under the directive.
The regulator emphasised that approval to provide telecommunications or value-added services does not automatically grant permission to operate a betting or gaming business.
This distinction is important because a platform may have the technical ability to distribute a service without necessarily meeting the separate regulatory requirements governing that service.
For telecom operators, the directive means that compliance checks must extend to relevant businesses using their networks and billing arrangements.
Why the regulator wants transaction records
Carrier billing allows certain purchases or services to be charged through a mobile phone account or related telecom billing arrangement.
Gaming operators may also use technology intermediaries to facilitate customer access, payments or service delivery.
The authority wants records of these transactions to assess whether operators have complied with the applicable licensing and tax requirements.
Such records can help regulators establish the scale of activity, identify the businesses involved and determine whether statutory payments are outstanding.
The requirement also increases the importance of clear contractual arrangements between telecom operators, value-added service providers and the gaming businesses they support.
Companies may need to review onboarding procedures, compliance documentation and internal monitoring systems to meet the requirements.
Lagos warns against facilitating unlicensed gaming
The authority said its directive is backed by the Lagos State Lotteries and Gaming Authority Law 2021.
The law contains restrictions on operating or facilitating gaming activities without the necessary authorisation.
The regulator also warned that company directors and principal officers could face consequences in circumstances covered by the law where an offence is committed with their consent, connivance or neglect.
The authority said it could issue statutory notices and pursue available enforcement measures after the 30-day compliance period expires.
The precise consequences for individual businesses will depend on the applicable law, the facts established and the enforcement process.
What the directive means for telecom and digital businesses
The move highlights the growing role of telecom operators and digital intermediaries in enforcing compliance across services delivered through mobile networks.
Companies that provide connectivity or billing infrastructure may need stronger procedures for checking the regulatory status of business customers.
The requirement could also affect how gaming operators select distribution partners and maintain documentation for their services.
For the wider technology sector, the directive demonstrates that digital distribution does not remove the need to comply with sector-specific laws.
Businesses operating across multiple states may also need to assess the relevant requirements in each jurisdiction rather than assume that one approval automatically covers all markets.
The next step will be whether affected companies complete the verification process within the stated period and how the authority applies its enforcement powers.
