Betting tax in Nigeria: the 5% Lagos takes from your winnings

By Victor Anozie · 2026-09-21 · updated 2026-10-13 11:16 WAT

Lagos takes ₦50 from every ₦1,000 of net winnings before you are paid, which is 5%. The money goes to the Lagos tax office, not to your bookie. Vanguard, Nairametrics and iGaming Business reported the directive that applies from February 2026.

The Lagos State Lotteries and Gaming Authority issued the directive. It covers every payout from a Lagos-licensed platform, even if you live outside Lagos. Your bookie passes the cut to the Lagos State Internal Revenue Service and keeps none of it.

The tax falls on net winnings, not on the full amount that hits your account. That means your stake comes back to you without a cut and only the gain is taxed. This split matters when you compare the payout total with the profit you expected.

Say you stake ₦500 and the ticket leaves ₦2,000 of profit after the match ends. Your bookie must tax only the profit. The tax taken is ₦100 and the total paid to you is ₦2,400, which is stake plus profit after tax.

You see the shortfall only at payout, not when you place the ticket. The odds on the ticket do not change and the stake you paid does not change. What changes is the gain that finally reaches you.

Most betting guides online still make no mention of this tax. Any guide written before that month describes a payout that no longer exists on these platforms. Look for the date on any page you read about fees.

Tax rules change the meaning of old posts and old comments. A page from last year can look right and still miss the current cut. That is why the month on an article matters more than its headline.

I have not timed any payout and the times quoted online come from sites that did not say how they measured. Your own withdrawal record is the only timing that matters to you. Keep a note of each payout for your own use.

The detail here comes from press reports, not from a bookie advert. That matters because an advert can leave out a cut that still applies. I use the press wording for who takes the cut and who issued it.

Check the licence badge on your platform when a payout looks short. Keep your National Identification Number ready, as checks without it can delay your payout. Do this before you query a shortfall.

Sources

• Vanguard – supports 5% withholding tax on gaming winnings, applies from February 2026
• Nairametrics – supports 5% withholding tax on gaming payouts, applies from February 2026
• iGaming Business – supports Lagos enforcement of withholding tax on player winnings, applies from February 2026