iGaming in Nigeria: Legal Aspects and the Slot Market Situation in 2024

The App2Top editorial team examined the current state of the online gambling industry in Nigeria. They specifically focused on legal issues and the slot market.

Each of Nigeria's 36 states is authorized to create its own regulations regarding gambling. As of 2024, various forms of gambling have been legalized in 11 of these states, mostly in the southern region.

Currently, the principle in the country is: everything that is not prohibited is allowed. While regulation of traditional casinos and other gambling establishments pose no issues—there are two federal laws covering them—the online sector is more complex.

The only clearly defined restriction pertains solely to online casinos. However, there's a nuance: on a regional level, particularly in Lagos—one of the key jurisdictions for operators—the law is more lenient. Companies entering the digital market merely need to register with the relevant state authority.

In fact, any organization can obtain a general gambling license in Nigeria. There is no requirement to register a legal entity in the country or to open a local office. The set requirements include a minimum capital of over 30 million naira (or 19,300 dollars) for the applicant company, and fees for application submissions must be paid: 50 million naira (32,200 dollars) for sports betting; 100 million naira (64,500 dollars) for lotteries. Furthermore, an annual tax rate of 7% of GGR (gross gaming revenue) is imposed.

Additionally, this year, the government introduced a special permit for offshore companies, which allows them to provide only online services for five years. In total, the fees for international operators amount to 500,000 dollars. According to the regulator's website, approved gambling activities include: online casinos, bingo, slots, sports betting, and poker.

It's important to note that there is no official data on the size of the market in Nigeria, as none of the local regulators keep records. However, according to forecasts, by next year, Nigeria's iGaming sector's gross gaming revenue (GGR) will reach 675.1 million euros. In April 2024, iGaming Business cited these figures from H2 Gambling Capital.

At the same time, iGaming Business, along with EveryMatrix, published research findings on the Nigerian online slot market. In July, EveryMatrix expanded on it. Below are the key findings.

• The average user bet is 0.41 euros.
• Each player launches slots an average of 16 times over 90 days.
• The average number of spins per gaming session is 66.
• Top 3 popular themes among users: classic — 14%; action — 12%; fruit — 11%. Notably, adventure or action slots are a subgenre. They offer greater interactivity, dynamic gameplay and storyline, as well as thoughtful symbols (beyond standard sevens, horseshoes, or berries).
• Top 3 basic slot functions: "wild" symbol — 13%; slots with a special win multiplier — 10%; scatter symbol — 6%.
• Retention is mainly ensured through bonus free spins—65% of the top-rated games feature this. It is followed by the option to purchase increased multipliers, infinite spins, and other tricks for an additional fee—40%. Lastly, there's a high chance to hit the jackpot—15%.

Top 5 Slot Providers:

1. PragmaticPlay;
2. SmartSoft;
3. Platipus;
4. Habanero;
5. Spinomenal.

Top 5 Online Slots:

1. Multi Hot 5;
2. Nile Fortune;
3. Candy Jar Cluster;
4. Hey Sushi;
5. 7 & Hot Fruits.