Gambling Taxation in Nigeria
In recent years, the gaming industry in Nigeria has continued to develop. This is thanks to the country’s vast and young population, better broadband access, and an explosion of internet-enabled mobile devices. Sports betting has steadily emerged as a very profitable part of the Nigerian economy, taking advantage of the country’s enormous passion for football. Some of the country’s most successful leagues, such as EPL and La Liga, have millions of followers, and betting helps Nigerians to benefit from what they enjoy.
There are two groups of people in gambling: winners and losers. But, winners may still be “losers” if they do not pay their taxes. The government has ruled that all money won in gambling is taxable income, which ensures that paying taxes in Nigeria on sports betting winnings is mandatory.
Gambling winnings are not the same as playing a regular casino game because the income tax department has created certain special laws for gambling games that you must obey unless you want to be prosecuted by the government. In Nigeria, they are very specific about receiving sports betting winnings with taxes, so make sure you don’t miss anything.
A quick history of online betting in Nigeria
Mostly because of Nigeria’s turbulent political past, sports betting in various forms has only recently become popular in this country. For example, Nigeria’s first sportsbook was only established in 2007, and the sport has grown in popularity since then.
According to estimates from 2014, Nigerians — mostly punters aged 18 to 40 — were spending a whopping ₦1.8 billion per day on sport betting, and the number is much higher today. In reality, it is estimated that over 60 million Nigerians gamble.
This equates to just over a third of the country’s population, and the figure has increased in recent years, owing largely to the exponential development of the internet. More than half of its population had internet connections as of 2015, and where there is internet, there are online sportsbooks.
The simplicity, comfort, and pace of online bookmakers — both Nigerian and foreign — were quickly discovered by a new generation of Nigerian sports betting fans. They no longer need to go to a betting shop or kiosk; instead, they can use their machine or mobile device as a kiosk.
Indeed, online bookmakers have forever altered the landscape of sports betting in Nigeria. While many punters still favor betting shops, some have been devoted to betting websites because they are numerous, discreet, and simple to enter and use. In addition, they have even odds and betting lines.
The best Nigerian sportsbooks are listed below, thanks to our trusted team of reviewers. Each is authorised, regulated, and respectable, with a plethora of betting markets, including many for Nigerian sports, as well as a slew of welcome and reload bonuses and free bets
Relevant information about betting winnings that are taxable
The fair market value of every commodity you earn in the game was generally included in taxable gambling profits. So, if you win money from gambling, you must pay a set rate of tax, which varies depending on the amount of money you win. Following the match, you will get a report informing you of your victory and the tax you must pay.
In Nigeria, it is the duty of a gambler to pay their taxes on time if they have won money from sports betting. It will keep them safe, and they will be able to bet in the future. Paying taxes to the government is a nice thing to do, but it has no bearing on the revenue you lose. This is the benefit you can get when paying taxes that the income you lose can be compared to the money you gain.
The problem of betting taxation in Nigeria
Regulators and fiscal institutions across the globe have taken a number of approaches to taxing operators’ gaming operations. The assessment of what comprises taxable benefit (i.e. the tax base) and the applicable tax rate is one of the main areas of emphasis. In Nigeria, the definition of what constitutes net gaming income or the tax base is still vague and contradictory. Inadvertently, this has a clear effect on the applicability of federal and state taxes such as value added tax (VAT) and withholding tax (WHT) on winnings, fees to international partners, and so on.
Sports betting, if well controlled, has proven to be a huge source of tax revenue for governments around the world. However, despite the presence of such actions, this has not been the case in Nigeria, where the industry remains relatively unregulated. As a result, the challenge of multiple taxes and licenses appears to be a problem for small enterprises.
If you’re still unsure about the tax percentage you’ll have to pay, bear in mind that it’s a flat 24 percent. This is the portion of your winnings that you would pay to the government in the form of tax, so it only applies to winnings, so there is no reason to be concerned. It is easy to pay, much like ordinary taxes, but you must first measure the amount to ensure that it is accurate.
If you don’t want to get into trouble when it comes to paying taxes, double-check the amount.
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