The tax on gambling winnings in Nigeria, in plain terms
One national rate, enforced state by state.
Withholding tax is chargeable on lottery, betting and gaming prizes at the rate of 5% for residents and 15% for non-residents.
The Nigeria Tax Act 2025 takes effect. It taxes gaming operators' profits, lets them deduct winnings paid, and exempts stakes from VAT.
The Chief Executive of the Lagos State Lotteries and Gaming Authority, in a public notice, instructed all gaming and lottery operators to withhold 5% of customers’ net winnings at payout.
The withheld tax must be paid to the Lagos State Internal Revenue Service. The customer is required to provide his/her National Identification Number. The amount withheld is credited against the customer's income tax liability (Nairametrics, 21 February 2026). KPMG Nigeria's Gaming Tax Report for 2026 reviews the 5% withholding tax on winnings.
How much tax on your winnings: worked examples
Only the winnings are subject to the withholding tax; the stake is not. Thus, the tax is 5% of the net winnings.
| Stake | Return | Net win | 5% withheld | You receive |
|---|---|---|---|---|
| ₦1,000 | ₦5,000 | ₦4,000 | ₦200 | ₦4,800 |
| ₦10,000 | ₦110,000 | ₦100,000 | ₦5,000 | ₦105,000 |
| ₦50,000 | ₦1,050,000 | ₦1,000,000 | ₦50,000 | ₦1,000,000 |
| ₦500,000 | ₦10,500,000 | ₦10,000,000 | ₦500,000 | ₦10,000,000 |
You get your stake back in full; only the profit is taxed. A win of $100,000 in net terms is about ₦136.9 million at ₦1,369.33 per dollar (Quidax USDT bid, 25 September 2026), so the 5% would be about ₦6.85 million.
Who deducts the tax on gambling winnings
What each casino's own terms say.
- Lagos-licensed books
The Lagos notice names 1xbet.ng, 22bet.ng, Melbet and Betwinner. Melbet may withhold commissions, taxes and fees as stated in its terms and conditions (5.13). 1xBet’s terms of use state it charges a 7.5% tax on winnings, a provision copied from its terms and conditions for Côte d’Ivoire. As for Betwinner, terms and conditions state nothing on tax.
- International crypto casinos
According to its terms of use (7.5.6), Cloudbet and Thrill (7.3) state you are liable to pay any taxes on your winnings. BC.Game, which also operates without a license in Nigeria, also states it will not withhold taxes.
- You
Just because a betting company does not withhold taxes, does not mean taxes do not apply. You should keep records of your winnings to give as evidence if required.
These companies, Melbet, 1xBet and Cloudbet, have stated their tax provision in their terms and conditions, which can be found in our reviews of these betting companies.
Crypto casino winnings and tax
A crypto payout is still a gaming win.
When you win in Litecoin, the naira value depends on the price when you sell. Keep the casino's withdrawal record, the exchange's sale record and the bank credit together; our guide to withdrawing to a Nigerian bank shows where each one comes from. Whether a gain on the coin itself is taxed separately is a question for a tax adviser.
What gambling operators pay under the Nigeria Tax Act 2025
For context: the tax on the other side of the counter.
- Company income tax on profits, with winnings paid, agency commissions and regulator levies deductible.
- No VAT on Stakes is provided for in the Act thereby placing a VAT liability on the operator for the margin as well as other services provided.
- These fees and levies are determined by the State gaming boards.
None of this is charged to you directly. It explains why Lagos-licensed books build tax into their systems while casinos licensed abroad do not. See is crypto gambling legal in Nigeria for how the licences differ.
What the law says
What the law saysSince a Supreme Court ruling of 22 November 2024, each state licenses gambling within its borders. Crypto is legal and regulated by the SEC. A casino licensed abroad is not licensed by any Nigerian state, and our reviews say which kind each casino is.
Check before you play
Lagos law makes promoting unlicensed gaming an offence, and the Lagos authority publishes a list of operators it calls illegal; none of them appear on this site. Check that playing is lawful where you live. Our guide is crypto gambling legal in Nigeria explains the rules.
Tax on gambling winnings: common questions
Yes, the 2024 Withholding Tax Regulations imposes a 5% withholding tax on gaming winnings of residents. Non-residents’ gaming winnings are subject to a 15% withholding tax. As provided in a 2026 notice by the Lagos State Lotteries and Gaming Authority, all gaming licensees in Lagos State are required to withhold 5% from the winnings of residents.
A Lagos-licensed operator withholds 5% or ₦500,000 of your ₦10,000,000 net win. You receive the remaining win and your stake, ₦9,500,000. The withheld amount serves as a tax credit and is linked to your National Identification Number (NIN). A casino licensed abroad gives you the full ₦10,000,000 win and you are responsible for paying the tax.
The international ones we review do not. Cloudbet's terms (section 7.5.6) and Thrill's (section 7.3) make any tax on winnings the player's responsibility, and BitStarz and BC.Game pay in full. Lagos-licensed books that accept crypto, such as 1xbet.ng, are the ones expected to withhold.
The amount you win less the amount you stake. A stake of ₦1,000, wins ₦5,000. The net win is ₦4,000. Therefore, the operator will withhold ₦200 and pay you ₦4,800.
Count wins after tax
And count losses too.
Losses get no relief. Setting a naira budget for gambling and treating it as spent is advisable.
Take a break from gambling if you are no longer enjoying it and speak to someone.
Gamble Alert: +234 916 295 7989 (24/7), toll-free +234 705 889 0073. MANI: 0809 111 6264.
Free, confidential helplines. You must be 18 or older to gamble.