The National Lottery Regulatory Commission, has issued a publication, directing remote operators on how to apply for a permit that will allow them to provide online gaming services, to players in Nigeria.
According to the publication, a company is considered a Remote Operator if they: –
- Operate their gaming business outside of Nigeria.
- Seek to provide facilities for gaming, to players in Nigeria online (or through any other means of remote communication).
If an organization already have a valid gaming licence, issued by a foreign gaming regulator, (their ‘Primary Licence’) and wish to legally offer their services to players in Nigerians, they will be required to apply for a Remote Operator Permit, which is valid for Five (5) Years.
Conditions for Granting the Permit
In order to be granted a Nigerian Remote Operator Permit, the operator will need to successfully complete the National Lottery Regulatory Commission (NLRC) Permit Approval Process, which is administered by the Commission’s managed services provider.
The approved Remote Game Operator is expected to adhere to the Permit Terms and Conditions as issued by the NLRC. These Terms and Conditions are subject to amendment from time to time, in order to ensure consistency with the evolving dynamics of gaming, and international best practices.
(See NLRC webpage www.nlrc.gov.ng for the Terms & Conditions)
The Remote Operator Permit will: –
- Allow the operator to advertise Online Gaming Services to players in Nigeria, including the publishing of print media in Nigeria, subject to the advertising conditions below.
- Allow the operator to offer the following online games to players in Nigeria namely: casino games, bingo, slots, sports betting, and poker.
- Exempt the operator from any requirement to set up a local subsidiary of their business in the country provided the operator completes a Non- Residence Registration Request to the Federal Inland Revenue Service of Nigeria (FIRS), which can be completed through the Dedicated System.
- Allow the operator to utilize payment services made available via the Dedicated System.
- Allow the operator to fully repatriate their revenue/funds from Nigeria, provided that tax due and payable on player deposits have first been settled through the Dedicated System to the NLRC and to FIRS.
- Allow the operator to subscribe to affiliate programs.
Repercussions for Non-Compliance
Any failure to adhere to the terms of the Remote Operator Permit, may result in immediate revocation of the Permit.
Serious social responsibility failings, particularly in regard to responsible gaming and underage gaming may result in your company being placed on the Remote Operator Blacklist, which will permanently restrict your ability to re-apply for a Permit.
Remote Operators seeking to provide facilities for gaming to players in Nigeria, either Online or through any other means of remote communication and who do not have a Permit issued by the NLRC, will be committing an offence under the provisions of the Nigerian Gaming legislation.
Application and Annual Permit Fee
In order to process your application, applicants are required to pay a non-refundable Application Fee. This covers the cost of conducting due diligence on your company and its Primary licence, in order to determine whether the company is deemed ‘fit and proper to offer gaming services to players in Nigeria.
The Operator Permit is valid for Five (5)-years and is renewable and subject to an annual Permit fee, payable directly to the Federal Republic of Nigeria, via the NLRC TSA Government Account.
This due diligence is carried out by our managed service provider and is part of the Dedicated System’s registration process.
Outline of the Remote Operator Fee.
| PERMIT FEE, YEAR 1 | One Hundred Thousand US Dollars (USD $100,000.00) for the first year |
| PERMIT FEE, YEARS 2 – 5 | Fifty Thousand US Dollars (USD $50,000.00) annual renewal fee |
Source: www.nlrc.gov.ng
