Gaming Regulators Challenge FEC’s Lottery Concession Decision

Gaming regulators from 23 Nigerian states have raised concerns over the Federal Executive Council’s (FEC) recent decision to grant a 15-year concession to Messrs Yuan Resources Limited for deploying a revenue assurance platform in the lottery and gaming industry. The decision, made on May 14th and 15th, 2024, comes under a Design, Finance, Build, Operate, […]

Gaming regulators from 23 Nigerian states have raised concerns over the Federal Executive Council’s (FEC) recent decision to grant a 15-year concession to Messrs Yuan Resources Limited for deploying a revenue assurance platform in the lottery and gaming industry.

The decision, made on May 14th and 15th, 2024, comes under a Design, Finance, Build, Operate, and Transfer (DFBOT) arrangement.

The Federation of State Gaming Regulators (FSGR) warns that this development might be sub judice, as the Supreme Court is currently handling a related case, Suit No. SC/1/2008, between the Honourable Attorney-General of Lagos State and the Honourable Attorney-General of the Federation. This case seeks to interpret Section 4(7) of the 1999 Constitution regarding gaming regulation authority in Nigeria.

The FSGR emphasizes the constitutional right of State Houses of Assembly to regulate lotteries and gaming activities. Section 4(7) of the 1999 Constitution (as amended) grants states legislative power over any matter not included in the Exclusive Legislative List.

Furthermore, the Constitution’s supremacy is underscored by Section 1(1) and (3), stating that any law inconsistent with the Constitution is void to the extent of the inconsistency.

Judicial decisions have reinforced this interpretation. For instance, the Federal Court of Appeal in Edet v. Chagoon (2008) confirmed that pools betting and casino gaming are residual matters, thus falling under state jurisdiction.

Additionally, the Supreme Court ruling in Attorney General of Lagos State v. National Sports Lottery Limited (2023) upheld that state high courts have the authority to determine lottery operations within their states.

The FSGR calls for the federal government to acknowledge the constitutional and judicial positions on gaming regulation.

It urges President Bola Ahmed Tinubu, the Senate President, the Speaker of the House of Representatives, and other key officials to uphold the rule of law and suspend any actions related to the concession until the Supreme Court delivers its verdict.

Despite proposing solutions like adopting the South African Gaming Regulatory Framework to the National Lottery Regulatory Commission (NLRC), the FSGR has yet to receive a response.

The FSGR’s member states continue to stress the need for federal compliance with the constitutional provisions and respect for state legislative powers to ensure stability in the gaming industry.

The signatories of this open letter include regulators from states such as Abia, Akwa Ibom, Anambra, Bayelsa, Benue, Cross River, Delta, Ebonyi, Edo, Enugu, Ekiti, Imo, Kogi, Nasarawa, Ogun, Ondo, Osun, Oyo, Plateau, Rivers, Taraba, Lagos, and Kaduna.

Signed by The Federation of State Gaming Regulators on May 16, 2024.

Addresses includes Asiwaju Bola Ahmed Tinubu, President of the Federal Republic of Nigeria, the Senate President, National Assembly, the Speaker, House of Representatives, National Assembly, the Chairman, Nigeria Governors’ Forum, Speakers, 36 State Houses of Assembly and Honourable Attorney-General of the Federation.