Iyke Bede writes that a petition by the Federation of States Gaming Regulators of Nigeria (FSGRN) urges the Nigerian Senate to reject the Central Gaming Bill because its proposed functions will law reduce state control of lottery activities and undermine fiscal federalism

For the FSGRN, the concern is not only constitutional but also financial. States currently licence, regulate, and tax gaming operators as part of their internally generated revenue. If the Central Gaming Bill becomes law, they argue, these functions would be taken over by the federal government, reducing state control and undermining fiscal federalism.

State regulators have raised concerns over the Central Gaming Bill (HB.2062), a legislation recently passed by the House of Representatives. The bill proposes to repeal the National Lottery Act No. 7 of 2005 and the National Lottery (Amendment) Act No. 6 of 2017, replacing them with a single framework to regulate gaming across the country.

The Federation of State Gaming Regulators of Nigeria (FSGRN) has asked the Senate not to approve the bill. In a petition addressed to Senate President Godswill Obot Akpabio, the group argued that the National Assembly’s lawmaking powers in this area extend only to the Federal Capital Territory (FCT). Any attempt to extend such powers to the states, they said, would be unconstitutional and inconsistent with Nigeria’s federal structure.

The petition is backed by the Supreme Court’s judgment of November 22, 2024, in Attorney General of Lagos State & Ors v. Attorney General of the Federation, National Assembly & Ors (SC.1/2008). In that case, the Court ruled that lotteries, betting, and gaming are residual matters under the 1999 Constitution, meaning they are reserved for state legislatures to regulate. The ruling affirmed that the National Assembly may only regulate such activities in the FCT.

For the FSGRN, the concern is not only constitutional but also financial. States currently license, regulate, and tax gaming operators as part of their internally generated revenue. If the Central Gaming Bill becomes law, they argue, these functions would be taken over by the federal government, reducing state control and undermining fiscal federalism.

The petition also responds to arguments raised by federal lawmakers. Supporters of the bill have claimed that online gaming qualifies as interstate commerce, which falls under the Exclusive Legislative List. They relied on Item 62, which covers trade and commerce, to justify a central law.

The Supreme Court, however, rejected this position in its 2024 judgment. On pages 59 to 63, the court stated clearly that the use of online platforms does not alter the constitutional division of powers. “Lotteries and gaming activities, while generating revenue, cannot be regulated by the provisions of an act of the National Assembly,” the court declared.

In its submission, the FSGRN quoted these sections of the ruling, urging the Senate to recognise them as binding. It called on lawmakers to confine any federal regulation of gaming to the FCT, leaving states to manage activities within their own territories.

The dispute goes beyond legal interpretation. While the Central Gaming Bill is presented as a measure to improve national revenue, state regulators see it as an encroachment on their authority. They argue that centralisation would not only weaken state oversight of gaming but also concentrate financial benefits in Abuja.

What emerges is a picture of gaming as a growing sector with clear economic value, and of continuing debates about the balance of power between the federal and state governments. For the Senate, the petition presents a choice: respect the Supreme Court ruling and uphold state control, or proceed with a bill that risks further tension between the two levels of government.

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