Executive summary

A recent report issued by the United Nations confirms that nearly 70% of Sub-Saharan Africa's population are under the age of 30, thereby fueling the demand for digital platforms such as sports betting and gaming. Accordingly, considering the population and age demography of some countries within the West region economy, the industry appears to stand out as a source of tax revenue and accompanying rules and regulations.

This Alert explores the evolving tax and regulatory landscapes of the Gaming and Betting industry in Ghana and Nigeria, being two of West Africa's vibrant markets, highlighting some of the potential and challenges presented by the rapidly growing sector.

Background

Despite the economic volatility in West Africa, the outlook remains positive. For example, the African Bank Development Group (AfDB) projects a recovery in economic performance, with growth expected to rebound to 4.1% in 2024 and further strengthen to 4.5% in 2025. To this end, the respective governments and businesses within the West region seek innovative structures to diversify and enhance their revenue streams and efficiency.

Industry highlights

The Gaming and Betting industry encompasses businesses that offer customers "games of chance" or skill-based competitions, based on random selection or outcomes of real or virtual events. This includes a range of activities such as gambling, wagering, sports betting, casino games, lottery draws and virtual competitions. These games can either be physical or digital, including sports betting, slot machines, poker, roulette and promotional prize schemes.

According to the "Lottery Market Report 2025" issued by Research and Markets (www.researchandmarkets.com), Africa's gaming and betting industry has witnessed accelerated growth in recent years, largely driven by digital innovation, increased mobile penetration and a youthful population.

In Ghana, the Gaming and Betting sector has evolved significantly. Specifically, the Gaming Commission confirmed that as of June 2025, there were approximately 90 licensed operators within Ghana. These operators offer a range of activities including sports betting, online and land-based casinos and remote gaming. In addition, Ghana operates a national lotto system managed exclusively by the National Lottery Authority (NLA), which oversees state-run lotto operations, while the general gaming and betting space is largely driven by private sector participation.

In Nigeria, the Gaming and Betting industry has experienced significant growth, particularly in the online betting segment. The National Lottery Commission confirms that, as of July 2025, there were approximately 70 operators licensed to conduct gaming and betting activities, including lotto, sports betting, casino gaming and consumer sales promotions. Almost certainly, the country's young demography, sports enthusiasm, increased use of mobile phones and access to internet connectivity have driven the steady rise of digital betting platforms.

Regulatory overview

From a regulatory perspective, most African countries have adopted different approaches to governing their Gaming and Betting industry.

Specifically, in Ghana, the Gaming and Betting industry is currently regulated by the Gaming Commission of Ghana (the Ghana Commission), a corporate body established under the Gaming Act, 2006, Act 721. The object of the Ghana Commission is to regulate, control, monitor and supervise the operation of games of chance in Ghana.

The National Lottery Regulatory Commission (NLRC), as established under the National Lottery Act of 2005 (as amended), initially regulated gaming and lottery activities throughout Nigeria. However, some Nigerian states enacted their own legislations to oversee gaming activities within their jurisdiction.

For instance, Lagos State, via its Lotteries and Gaming Authority (LSLGA), set up the Lagos State Lotteries and enacted the Gaming Authority Law, 2021, to oversee gaming activities within the state; as a result, operators have to adhere to both federal and state regulations. This created a dual regulatory framework for businesses, resulted in compliance complexities and increased operational costs for businesses, to note a few issues.

In a bid to clarify these complexities, a jurisdictional dispute (Attorney General of Lagos State v. Attorney General of the Federation & Ors.) was initiated between the federal and state governments regarding authority over the regulation of Gaming and Betting activities. The Supreme Court of Nigeria held on 22 November 2024, that the National Lottery Act, 2005, should apply solely within the Federal Capital Territory (FCT), thereby limiting the NLRC's jurisdiction to the FCT. The court also noted that Nigeria's National Assembly lacks the constitutional power to make laws relating to the regulation of the Gaming and Betting industry within states in Nigeria. Notably, the key implications of the court judgement provide that:

• Licensed operators that have only obtained the federal agency license should now be required to obtain a license by the relevant state authority where they have their business establishment.
• State governments without clear regulations on Gaming and Betting must now promulgate such legislations within their respective states.

Note that currently, only approximately 45% of Nigerian states (including Lagos, Ogun and FCT) have a clearly defined regulation on Gaming and Betting, while an additional 27% have a well-established licensing structure but are still in the process of enacting well-defined rules for operators.

Tax landscape

Ghana

The taxation of Gaming and Betting activities in Ghana is governed primarily by the Income Tax Act, 2015 (Act 896), as amended. A significant amendment introduced by the Income Tax (Amendment) Act, 2023 (Act 1094) imposed a 20% tax on Gross Gaming Revenue (GGR) from betting, gaming and other games of chance. This amendment also introduced a 10% Withholding Tax (WHT) on players' winnings. However, the requirement to withhold tax on players' winnings was repealed under Act 1129, effective 2 April 2025. Consequently, effective 2 April 2025, players should no longer encounter WHT on their winnings.

The table below highlights the key tax features now applicable in Ghana.

Nigeria

In Nigeria, the fiscal framework for Gaming and Betting has evolved in phases. Prior to 2024, taxation of operators was largely limited to the lottery tax regime introduced by the National Lottery (Amendment) Act, 2017 (NLA), which applied a tax rate of 7% on net proceeds and exempted qualifying operators from the provisions of the extant Companies Income Tax Act (CITA) and Value Added Tax Act. The landscape further advanced with the introduction of the "Deduction of Tax at Source (Withholding) Regulations, 2024, (WHT Regulation)," which for the first time, imposed tax collection at source on winnings paid to players. ((For background, see EY Global Tax Alert, Nigeria issues deduction of tax at source (withholding) regulations 2024, dated 11 July 2024.)

However, in line with the government's plan to consolidate and harmonize multiple taxes, the Nigerian Tax Act (NTA), 2025 was enacted and is expected to take effect from 1 January 2026. Fundamentally, the NTA provides that lottery and gaming companies should no longer be taxed under a separate framework. Instead, they should be covered within the scope of NTA rules, as generally applicable to companies in Nigeria; with tax rates ranging from 0% to 30% depending on company size, as defined by the rules. (For background, see EY Global Tax Alert, Nigeria Tax Act, 2025 has been signed — highlights, dated 30 June 2025.)

The table below highlights a progression of the key features of the current tax provisions and the potential changes under the NTA.

Administrative challenges - tax and regulatory perspectives

Aspects of taxing Gaming and Betting activities in Ghana present challenges. Although the taxation of the operators does not appear challenging, the taxation of the players remains an unaddressed issue.

Specifically, lottery winnings were subject to a 10% WHT. The objective was to tax the winnings of the players at the source, as these players were unlikely to register with the GRA and file personal income tax returns. With the repeal of the WHT, players are less likely to pay tax on their winnings, thereby thinning tax revenue that the government should have received from the winnings.

Nigeria faces a different kind of tension. The Supreme Court's decision, discussed above, provides that states should regulate betting and gaming within their territories. At the same time, the NTA has pulled lottery and gaming companies into the federal tax net, making them subject to corporate income tax under the new NTA. This raises practical questions. For example, if the states regulate and issue licenses to operators, shouldn't they also have a claim to tax revenue from these activities? If so, would this be in addition to the applicable tax under the NTA, thereby raising double taxation issues for the entities?

The problem is compounded by operational realities. Most betting companies are incorporated in one state but run nationwide networks through agents and digital platforms, which makes it unclear whether all states in which they operate can introduce their own income-based levies, potentially taxing the same income under different states.

Nonetheless, when compared to the administrative complexities noted for Nigeria, Ghana offers a more straightforward model. The Gaming Commission serves as the central regulator, while taxation is clearly structured under a GGR regime. This unified system of tax and regulatory administration reduces compliance costs and helps ensure predictable government revenue.

Nigeria could draw lessons here, particularly around the benefits of centralization and clarity in assigning taxing rights.

Conclusion/next steps

The evolving landscape of gaming and betting taxation in Ghana, Nigeria and the wider West African region presents both significant changes and notable challenges.

In Nigeria especially, the new NTA framework signals a shift that operators cannot ignore. In the coming months, the changes will require careful consideration of how the rules interact with existing state regulations, corporate income tax and broader compliance obligations.

For gaming and betting operators, this is the time to take stock. Practical next steps could include:

• Making regulatory and tax-impact assessments to understand how the new rules affect business models
• Undertaking tax planning and restructuring where necessary to align operations with federal and state requirements
• Engaging with regulators to clarify gray areas and reduce potential exposure to double taxation or compliance disputes

Approaching the changes proactively should help operators remain compliant and position themselves to operate more efficiently in what is becoming a highly regulated sector.