The National Lottery Regulatory Commission (NLRC) does not have the authority to issue licenses and enforce regulations for gaming and lottery operations in any State across the nation, according to the Ikeja High Court.
This statement was given by Justice Atinuke Ipaye in his decision in the case LD/49089GCM/2021, which was brought by the Lagos State Lotteries and Gaming Authority.
Shade International Gaming Limited (doing business as Betika) and Neomobile Entertainment Ltd. are the first and second defendants in the case.
They were sued for refusing to apply for a license from the Authority before starting their business in Lagos State.
The respondents hinged their refusal on the ground that they already have been licenced by the NLRC and need not regularize their gaming operation within Lagos State.
The originating summons was brought pursuant to Order 5 Rule 4 (2) and Order 5 Rule 5 of the 2019, High Court of Lagos State Civil Procedure Rules 2019 and Sections 19, 35, 86 and 96 of the Lagos State Lotteries and Gaming Authority Law 2021.
The agency raised two questions for the court’s determination; “Whether the failure of the firms to obtain lotteries and related gaming activities license from the agency as required by the Lagos State Lotteries and Gaming Authority Law 2021, while carrying on the business of lotteries and related gaming activities in Lagos State is not unlawful.
The applicant also asked the court to determine; “Whether the agency can compel the firms to pay appropriate registration fees for obtaining license and other statutory remittances for carrying on the business of lotteries and related gaming activities in Lagos State as stipulated by the Lagos State Lotteries and Gaming Authority Law 2021”.
In her judgment, Justice Ipaye held that the Federal Government cannot through the National Assembly legislate on any issue not contained on either the exclusive and concurrent legislative list.
The court therefore granted all the reliefs sought by the applicant.
Justice Ipaye held that that the failure of the 1st and 2nd respondents to obtain the lotteries and other related gaming activities license from the applicant as required by the Lagos State Lotteries and Gaming Authority Law 2021, while carrying on the business of lotteries and related gaming activities in Lagos State is unlawful.
The trial judge therefore ordered the 1st and 2nd respondents to pay the appropriate registration fee and other statutory remittances for carrying on the business of online lotteries and other related gaming activities in Lagos State.”
The court made a declaration that the 1st and 2nd respondents cannot continue in the business of lotteries and other related gaming activities in Lagos State without obtaining appropriate license from the applicant.
The court therefore ordered that since the 1st and 2nd respondent have been carrying on the business of lotteries and other related gaming activities illegally in Lagos State, they shall each pay the statutory registration fee to obtain license for conducting lotteries and other related gaming activities in Lagos State.
The court also ordered the 1st and 2nd respondents to each pay all outstanding statutory remittances owing and due from the commencement of their respective business operations to the date of judgment, 8th November 2022.
It would be recalled that despite the hearing notice issued by the court, the respondents neglected to file a response to the Originating processes throughout the pendency of the suit.
The court therefore granted leave to the applicant to move its summons.
During the adoption of argument, the counsel representing the applicant argued that the applicant is statutorily established by the Lagos State Lotteries and Gaming Authority Law 2021 to license and regulate lotteries and gaming activities within Lagos State, thus, it is an illegality for the respondents not to obtain the relevant licence before commencing their business within Lagos State, whether online or physical.
Counsel argued further that ‘lotteries and related gaming activities are items on the residual legislative list’ and as such only the State Houses of Assembly can validly legislate on gaming matters.
He argued and that the National Assembly through the National Lottery (Amendment) Act 2017, has usurped the powers of the states to legislate on lotteries and related gaming activities, which amounts to a flagrant disregard of the provision of section 4 of the Constitution of the Federal Republic of Nigeria 1999 (as amended).
In the judgment, the court aligned itself with the applicant’s counsel submission and stated that matters relating to lottery, betting, gaming and other connected activities are not specified or contained in either the exclusive or concurrent legislative list, therefore leading to the inevitable conclusion that the National Assembly cannot legislate on such matter. Also, the court relied on several Judicial precedents, particularly, the case of Edet V. Chagoon & Anor (2008) 2 NWLR (pt. 1070) @ 85 esp. @ 103 para C-E in arriving at its decision.
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