The law
Are betting winnings taxable in Nigeria?
Yes. Section 4(1)(h) of the Nigeria Tax Act 2025 lists prizes and winnings among the income chargeable to tax, and the Act took effect on 1 January 2026.
The tax is collected through withholding. The Deduction of Tax at Source (Withholding) Regulations 2024 brought winnings from lottery, betting and gaming into that system from 1 October 2024.
Section 198 of the new Act keeps regulations made under the old tax laws in force where they fit the Act, so the withholding rule carried over into 2026.
The rates are 5% of winnings for Nigerian residents and 15% for non-residents. The bookmaker deducts the tax and pays it to the tax authority; you receive what is left.
Worked example
How the 5% tax on bet winnings is worked out
In February 2026 the Lagos State Lotteries and Gaming Authority (LSLGA) told all Lagos-licensed gaming platforms to deduct 5% of net winnings at payout. The money goes to the Lagos State Internal Revenue Service (LIRS).
Net winnings are what you win minus what you staked. 1win’s Nigerian terms spell out the formula as total winnings minus total stakes and losses, with the tax taken automatically when you withdraw.
On a single winning slip, a ₦10,000 stake that returns ₦60,000 gives net winnings of ₦50,000. Five per cent of that is ₦2,500, which leaves ₦57,500 to withdraw.
Withdrawal receipts are your record of tax already taken. SportyBet, for one, shows every payout in the Transaction History of your account, so keep a copy before you close an account. If you plan to switch, our ranking of the best betting sites in Nigeria names the Lagos licence holder behind each licensed brand it lists.
Stakes
Is there VAT on betting stakes in Nigeria?
No. Section 185(1)(m) of the Nigeria Tax Act 2025 exempts “money, stakes or securities” from VAT, and the Act defines a stake as the amount wagered on a game.
A ₦1,000 stake therefore stays ₦1,000. VAT now falls only on the bookmaker’s margin and its other taxable services.
Bookmakers carry their own taxes as well. Section 62 taxes the income of lottery and gaming businesses and lets them deduct winnings paid, agent commission and regulators’ levies. In Lagos, the LSLGA also charges relevant operators a Good Causes Levy of 10% of gross gaming revenue.
Those charges sit with the operator, so the part of tax on betting winnings in Nigeria that you see is the 5% taken from your profit.
FAQ
When did the 5% tax on betting winnings start?
Withholding on lottery, betting and gaming winnings applies from 1 October 2024 under the 2024 withholding regulations. Lagos then told its licensed platforms, in a notice published in February 2026, to apply the 5% to net winnings at payout.
Who collects the betting tax in Lagos?
The bookmaker deducts it at payout and remits it to the Lagos State Internal Revenue Service (LIRS), under the LSLGA directive of February 2026. 1win's Nigerian terms say the deduction happens automatically when you withdraw.
Do non-residents pay more tax on betting winnings?
Yes. The 2024 withholding regulations set 15% for non-residents against 5% for residents, and 1win's Nigerian terms apply the same split to net winnings. Licensing rules are covered in our guide to whether betting is legal in Nigeria.