Tax on Betting Winnings in Nigeria (2025 Guide)
Since 2025, Nigeria has moved from “only operators pay tax” to a system where player winnings can also be taxed at source. This guide explains in plain language how betting tax on winnings works for Nigerian players, what rates usually apply and what to expect when you withdraw.
Quick view: how betting tax on winnings is usually handled
This is a simplified overview for players. Exact rules depend on federal/state law, the type of game and whether the operator is licensed in Nigeria or offshore.
| Where you bet | How tax is usually handled | Who deducts it | What you see as a player |
|---|---|---|---|
| Nigeria-licensed online bookmaker | Withholding tax on winnings may be taken at source when you withdraw. | Bookmaker / payment gateway (on behalf of tax authorities). | Net payout is lower than gross win; some slips show “tax” or “withholding”. |
| Retail shop / POS betting in Nigeria | Tax may be applied on higher winnings depending on how the operator is set up. | Shop operator (if compliant) at the time of payout. | Cash-out may include a small deduction before you receive cash. |
| Offshore / non-Nigerian sites | Many do not deduct Nigerian tax at source, but you can still be liable personally. | Usually no deduction by the offshore operator. | You receive the full payout, but local tax duties can still exist in theory. |
How Nigeria’s betting tax on winnings works (simple explanation)
In recent years, Nigeria introduced rules that allow the government to collect tax directly from gambling winnings using a withholding tax (WHT) system. In practice, this often works as follows:
- You place a bet on a Nigeria-licensed bookmaker (online or in-shop).
- Your bet wins – the system calculates gross winnings (stake + profit).
- The bookmaker or payment processor calculates tax on the winnings portion according to current regulations.
- That tax amount is withheld and paid to the tax authorities.
- You receive the net amount after the tax has been deducted.
Public sources as of 2025 describe federal rules that apply withholding tax on gambling winnings with different rates for residents and non-residents. States can also have their own levies or fees. Because this framework is still evolving, always verify current rates with official sources or a tax professional.
Example scenarios (simplified)
These examples are only illustrations to show how deductions can appear on betting slips. They are not exact representations of current law.
| Scenario | Gross win | Illustrative tax deduction | Net payout |
|---|---|---|---|
| Small multiple bet on a Nigeria-licensed site | ₦10,000 | ₦500 (sample 5% withholding on winnings) | ₦9,500 paid to player |
| Larger accumulator win in a betting shop | ₦100,000 | ₦5,000 (sample 5% on winnings portion) | ₦95,000 paid at the counter |
| Win on an offshore site that doesn’t apply NG tax at source | ₦50,000 equivalent | ₦0 withheld by operator | ₦50,000 received; local tax duties could still exist depending on law. |
Again, these are only simplified examples to show the idea of gross vs net winnings. Real numbers depend on the current legal rate, your residency status and how the operator is licensed.
How Nigerian betting operators handle withholding
Online NG-licensed sites
Most serious operators update their platforms to show tax breakdowns on slips and withdrawal screens. You may see separate lines for “stake”, “winnings”, “tax”, and “net payout”.
Shops and POS outlets
In retail locations, tax is sometimes embedded into the payout calculation. Always ask for a clear printed slip or receipt that shows how your net cash was calculated.
Offshore brands
Offshore sites tend not to withhold Nigerian tax automatically. This can look attractive in the short term, but does not remove any legal obligation you may have as a Nigerian resident under local law.
Useful Nigeria guides related to winnings and payouts
For a full picture of how money moves in and out of betting accounts in Nigeria, see our related hubs:
Betting tax FAQs for Nigerian players
How much tax is taken from betting winnings in Nigeria?
Recent federal rules introduced a withholding tax on gambling winnings, with different rates reported for residents and non-residents. Exact percentages and thresholds can change, so always rely on the latest information from official tax guidance, your betting operator or a qualified tax adviser.
Who deducts the tax – the betting company or FIRS?
In practice, betting operators and payment gateways are expected to deduct tax at source when you withdraw or when winnings are settled, and then remit it to the authorities. That’s why you often see a difference between gross win and net payout.
Are small wins also taxed?
Some systems apply withholding automatically on eligible winnings above certain thresholds, while others treat all wins the same. How this works in detail depends on current regulations and the operator’s implementation. Always check your slip and the bookmaker’s terms.
Do I still owe tax if I bet on offshore sites?
Offshore bookmakers often do not deduct Nigerian tax at source, but that does not automatically remove your obligations as a Nigerian resident. For a reliable answer on your own situation you should speak to a qualified tax professional or contact FIRS.
Are bonuses or free bet winnings taxed?
Many systems focus on net winnings rather than the original source (stake vs bonus), but treatment can vary by operator and by how the law is interpreted. Check how your bookmaker describes tax on bonus-related wins in its terms and conditions.
Can state and federal authorities both tax gambling winnings?
Nigeria has a mixed federal and state framework for gaming and betting. The federal level can impose rules such as withholding tax, while some states may have their own levies or licensing fees on operators. This complexity is one reason why professional tax advice is recommended for high-value winnings.