iGaming in Nigeria: Legal Aspects and the Slot Market Situation in 2024
The editorial team at App2Top has analyzed the current state of the online gambling industry in Nigeria. They specifically focused on legal issues and the slots market.
Each of Nigeria’s 36 states has the authority to establish its own rules regarding gambling. As of 2024, different forms of gambling are legalized in 11 states, mostly in the south.
Currently, the principle in the country is: everything not prohibited is allowed. While regulatory challenges do not arise with physical casinos and other gambling establishments—since two federal laws apply to them—online regulation is more complicated.
The only clearly defined restriction concerns online casinos exclusively. However, there's a nuance: at the regional level, particularly in Lagos—one of the key jurisdictions for operators—the law is more lenient. Companies entering the digital market only need to register with the relevant state authority.
In fact, any organization in Nigeria can obtain a general gaming license. There is no requirement to set up a legal entity in the country or open a local office. Among the established requirements, the candidate company’s share capital must exceed ₦30 million (approximately $19,300). They must pay application fees: ₦50 million ($32,200) for sports betting; ₦100 million ($64,500) for lotteries. An annual tax of 7% on GGR (Gross Gaming Revenue) is then imposed.
Moreover, this year, the government introduced a special permit for offshore companies that can offer online services for five years. The total fees for international operators amount to $500,000. According to the regulator's website, permitted gambling activities include: online casinos, bingo, slots, sports betting, and poker.
It should be noted that there are no official data on the market size in Nigeria. None of the local regulators keep reports. However, according to forecasts, next year the gross gaming revenue (GGR) of Nigeria’s iGaming sector is expected to reach €675.1 million. These figures were reported in April 2024 by iGaming Business, referring to H2 Gambling Capital.
At the same time, iGaming Business, in conjunction with EveryMatrix, published the results of a study on the Nigerian online slots market. In July, EveryMatrix supplemented it. Here are the main findings below.
- The average bet by users is €0.41.
- Each player launches slots 16 times on average over 90 days.
- The average number of spins is 66 times per gaming session.
- The top 3 popular themes among users are: classic — 14%; action — 12%; fruit — 11%. Notably, adventure or action slots are a distinct subgenre. It includes greater interactivity, dynamic gameplay and storyline, and thoughtful symbols (beyond standard sevens, horseshoes, or berries).
- The top 3 fundamental slot features: wild symbol — 13%; slots with a special win multiplier — 10%; scatter symbol — 6%.
- Retention is primarily ensured through bonus free spins—65% of the most highly rated games include this feature. Next is the ability to purchase enhanced multipliers, infinite spins, and other perks for an additional fee — 40%. Finally, there is a high chance of winning a jackpot — 15%.
Top 5 slot providers:
- PragmaticPlay;
- SmartSoft;
- Platipus;
- Habanero;
- Spinomenal.
Top 5 online slots:
- Multi Hot 5;
- Nile Fortune;
- Candy Jar Cluster;
- Hey Sushi;
- 7 & Hot Fruits.
