Tax on Betting Winnings in Nigeria — Practical Guide
Here’s how Nigeria taxes gambling wins today — what rate applies, who withholds it, quick math examples, and what records to keep. Plain English, no drama.
- Winnings tax is withheld at source by the payer/platform: typically 5% for Nigerian residents, 15% for non-residents.
- VAT (7.5%) applies to gambling as a service (operator side); it’s not usually a separate deduction from your winnings.
- Always match names, complete KYC, and save receipts/reference IDs for clean cash-out.
What’s taxed — and who takes it?
The tax
Withholding Tax (WHT) on winnings from lotteries, gaming & reality shows. Current prevailing rates are 5% (residents) and 15% (non-residents). It’s taken from your winning amount before payout.
Rates and enforcement began under the 2024 WHT reforms and subsequent implementation in late-2024/early-2025.
Who withholds?
The payer/platform is required to deduct WHT at source and remit to FIRS. You should see the deduction in your cashier/statement or payout breakdown.
Keep your transaction reference — it’s your proof the tax was withheld.
Quick math examples (resident vs non-resident)
| Scenario | Gross win | WHT rate | WHT amount | Paid to you |
|---|---|---|---|---|
| Resident punter | ₦100,000 | 5% | ₦5,000 | ₦95,000 |
| Non-resident | ₦100,000 | 15% | ₦15,000 | ₦85,000 |
VAT vs. WHT — don’t mix them up
VAT (7.5%)
VAT applies to the service (betting/gaming offered by the operator). It’s an operator-side obligation, not an extra “fee” off your winnings at cash-out.
WHT on winnings
A direct deduction from your winning payout, at the current prescribed rate (5%/15%). You should receive the net amount after this deduction.
Policy can evolve. We track changes and update this page when new rules land.
Keep it clean — fewer delays, fewer flags
Match details
Same full name on your betting account, deposits and KYC docs.
Save proofs
Screenshot results, cashier lines, and tax lines until money lands.
Verify early
Complete KYC before big wins to avoid “pending” purgatory.
Betting tax in Nigeria — quick FAQs
Do all wins get taxed?
As a rule, wins that meet the platform’s definition of “winnings” are subject to WHT at the prevailing rate. Small promotional credits may have different treatment — check the T&Cs.
Is this extra income tax on top?
WHT is a deduction at source. Personal tax treatment depends on your overall circumstances and current rules. Keep your records and seek advice if in doubt.
Why is my payout lower than expected?
Likely due to WHT and/or unresolved KYC or bonus rollover. Check the cashier lines for “withholding” and confirm your verification status.
Does VAT reduce my winnings?
No. VAT is an operator-side tax on services. Your winnings are impacted by WHT, not VAT.