Stakeholders tackle double taxation in sports betting

The issue of double taxation in the Nigerian sports betting industry may soon be resolved as federal and states representatives have agreed to proffer a solution to the lingering problem.

Operators of sports betting companies in the country last month in Lagos lamented the issue of double taxation by the Federal Government and states at a summit organised by the Association of Nigerian Bookmakers, saying it was killing the industry.

Akin Alabi, founder of NairaBet.com and Acting Chairman, ANB, said operators were in dilemma over whom to pay taxes.

“Each state says they are in charge of gaming and betting and the National Lottery Regulatory Commission says they are the ones in charge. So who do we pay to? Do we pay twice? And that is not even talking about the company taxes that we pay. So, it’s strangling our businesses coupled with forex issues. We need to be sure who we pay to,” Alabi said at the summit.

But there appears to be light at the end of the tunnel after the summit. Precious Puanoni, a Special Assistant to the Director General, National Lottery Regulatory Commission, said the body was ready to collaborate with the states to resolve the issue. He expressed optimism that the National Assembly would “do the needful” in amending the lottery act to tackle the problem.

Puanoni, who attended the summit, said, “We’ll destroy the industry if every state wants to collect tax from every operator; then they will be paying to 36 states and it doesn’t make sense. We’ve always invited the states (for collaboration); we even give licenses to people operating in Lagos and other states. The issue of money is trivial; the issue of regulating and sanitising the industry is what will even generate the money.”

On the issue of harmonising the tax law between states and the FG, CEO Lagos State Lottery Board, Lanre Gbajabiamila, said, “We are working on the bridge, we’ve been on it for a long time and I think it’s actually time to move forward, harmonise all the laws and make sure the laws don’t overlap each other. Other states, not just Lagos, believe they should regulate the industry themselves because there is a downfall in the economy and everybody needs to take the bull by the horn and source for their Internally Generated Revenue.