Here in this post, we are going to give you a detailed guide on the Steps To Collect Gambling and Gaming License in Nigeria. We hope you find this article informative.
Gambling is one of the highest yielding revenues generating streams in Nigeria. Be it Casino, Pool, Betting, Lotto or whatever category it falls into, people have shown massive interest in it considering its immense potential of rewarding its players with what it’s known as “quick money.”
In gambling, people stake a certain amount of money, placing the odds against the home team or the visiting team.
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https://i.onthe.io/smngoz52115459qul.6a375548.jpgThere are several options attached to it with designated amount of odds (normally seen as points you use to accumulate the cash).
When the game goes in your favour you win the money you gambled for but when it goes south, you also lose your money used in staking the game.
The gambling business is a highly lucrative business any business-minded individual could begin provided you follow the right steps which of course in this article you shall be learning how to go about it.
In an online publication by Vanguard newspaper, “about 60 million Nigerians between 18 and 40 years of age may be spending up to N1.8 billion on sports betting daily, an investigation by the News Agency of Nigeria (NAN) reveals.
This is an incredibly high income earning avenue any business-minded individual can go into as a business. It is quite unfortunate that only a few people have been able to identify and take advantage of this opportunity.
According to an article published by European Gambling, it explains the chances the Nigeria gambling sector has within the next few years.
“As stated by PwC, Nigeria’s gross gambling revenues will increase by 16 percent in the course of the next five years.
What is more, Nigeria is to launch a nationwide lottery titled Quick Lotto, and former chairman of the Senate Committee on Capital Market Ayo Arise believes that the launch will generate employment and tax revenues.” This is why venturing into the gambling business is really a big fish to catch.
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Before going on to seek for an operational license from the Nigeria Lottery Regulatory Commission (NLRC), there are certain considerations to be taken since those considerations will, later on, be one of the major requirements in your application process.
Registering with the Corporate Affairs Commission (C.A.C.)
The Corporate Affairs Commission is the regulatory body that officially recognizes and controls all activities of corporate businesses in Nigeria.
In order to run a corporate business in Nigeria you must obtain a certificate of incorporation from the Corporation giving you the permission to operate your business in the Nigeria vicinity.
Below are necessary steps to be taken in order to obtain a Certificate of Incorporation from the Corporate Affairs Commission (C.A.C.).
- You are to have a duly stamped Particulars of Shareholders (Form CAC2).
- Also, a duly stamped Memorandum and Articles of the Business representing lottery business in its objects;
- A completed Details of Company Secretary (Form CAC2.1).
- A completed Details of Registered Address of Company (Form CAC3).
- A completed Details of Company Directors and (Form CAC7)
- And finally, a completed Statutory Compliance with the provisions on CAMA).
After having duly obtained a Certificate of Incorporation from the Corporate Affairs Commission, the next step is to apply for Gambling/ Gaming License.
Obtaining Gambling and Gaming License in Nigeria
The Nigeria gambling industry is regulated by the 2005 National Lottery Act, and the 2007 National Lottery Regulation where specific requirements are set in place to regulate the gambling business activities in Nigeria.
Let’s take a quick look at the process involved to obtain gambling and gaming licenses.
The Requirements for Obtaining a Gambling/ Gaming License?
- As part of the requirements, you are to write an application letter addressing it to the Director General of Nigeria Lottery Regulatory Commission indicating your desire to start a gambling business in Nigeria alongside the application fee.
- Then you will have to obtain and fill the application form.
While returning the duly completed application form, come along with the following documents:
- Bank reference
- Details of the Company’s human capital base including accounting, administrative and security systems.
- Evidence of clearance from relevant regulatory agencies;
- Technological evidence to operate the online lottery business;
- Certificate of Incorporation;
- Copy of Memorandum and Article of Association of the lottery Company;
- Details of Board of Directors of Company;
- Profile of the Lottery Company;
- Detailed Rules of the lottery games.
- Evidence of share capital which is a minimum of N100, 000, 000 (One Hundred Million) shares.
- An operational base for the lottery business.
- Once you are cleared, you will be issued a clearance certificate rendering you eligible for business operation in the gambling industry.
Choosing the location for your business
One of the primary things to consider before starting up a business is geography. This is not left out in the gambling business.
However, when choosing a location two things need to be considered; one, the online geographical location and two, the offline setting.
The online geography has to do with the platform on which your business will operate on since most of the gambling businesses are virtually done online.
On the other hand, offline geography has to do with the physical location of your business; in other words, the office where people can come to make bookings.
Choosing online Geography
Thanks to technological advancement, several things that would require tedious effort to setup like the gambling website and the gambling software are made available on request.
It is important to make your proper research to know which of the service providers are really doing well in terms of building websites and software.
For instance, websites like iGamers, Gamer Launch, uCoz, iClan, and Wix are good examples of website builders who can help you build your online gambling websites. It is crucial to make your research and know which of the service providers you intend to follow.
Choosing offline Geography
It is crucial to understand that in as much as it is an online gaming business, you still need a physical meeting point—your office—where people can come to make physical transactions.
This is because not everyone has access to the internet or smart phone to run their gambling and gaming online without having to go to any physical office.
Bet9ja for instance, one of the numerous global online gaming companies is run both online and offline. People who are not too conversant with the online process of betting prefer going to the gambling centers to initiate physical transaction and printing of game tickets; while those who are good with their smartphones execute their gambling and gaming activities within the comfort of their homes.
When choosing your offline location you really need to understand your target market. Are you going to be serving mostly the young people or the teenagers?
Or are you serving both? What are your age ranges? Let’s say between ages 18 to 55. After you have successfully determined these things, choosing your geography or business location would not be too difficult.
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Gambling is an incredibly lucrative business to venture into especially here in Nigeria where gambling is extremely on high demand.
Do you have what it takes to start up one for yourself? Why not give it a try you might be surprised by the return on investment.
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