Gaming regulators in the country have raised concerns over the recent decision of the Federal Executive Council (FEC) to grant a 15-year concession to Messrs Yuan Resources Limited to deploy a revenue assurance platform in the lottery and gaming industry.

The FEC meeting on May 14th and 15th, 2024, had, among other decisions, awarded Messrs Yuan Resources Limited the concession to deploy a revenue assurance platform under the Public Private Partnership arrangement in the lottery and gaming sector.

The concession which will be for 15 years, is to be done via the Design, Finance, Build, Operate and Transfer option.

A statement released to the Nigerian Tribune by the Head of Operation, Oyo State Gaming and Lottery Board, Fisayo Oke conveyed the warning of the Federation of State Gaming Regulators (FSGR) that the FEC decision might be subjudice.

They made reference to that the Supreme Court was 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 that the State Houses of Assembly have the constitutional right to regulate lotteries and gaming activities.

The statement added: “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 pool 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.”

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