In 1965, Nigeria passed the Casino taxation act into law. It was the first major attempt at gambling legislation since the country became a republic two years prior. At the time, the gambling industry itself was still largely unregulated.
In 1990, about 25 years after the law, gambling had gained a larger traction in the country, and even the state wanted its share of the industry’s revenue. Nigeria had to make concessions in its gaming prohibition act of 1997 to allow Nigerians play lotteries, stake at casinos and gamble sports.
Later in 2009, local companies were licensed to sell betting services to Nigerians. With increasing digital penetration and the digitisation of gambling services, the industry grew at an astounding rate, according to measurable market indicators.
Recognising this growth, Nigeria has made attempts to leverage the economic potential of the industry. However, when it comes to intervening against the social and mental implications of gambling prevalence, the lights are still crimson red.
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THE SIGNS ARE THERE: MORE PEOPLE MAY BE GAMBLING IN NIGERIA
Statista, a European business intelligence company, projected a 9.2 percent growth rate for the Nigerian gambling industry every year. Per the same report, the industry is expected to hit a revenue of €525.10 million in 2023. The projections for the end of 2027 currently stand at €758.40 million.
These figures may spell a revenue jackpot for the Nigerian government for several reasons. For one, the National Lottery Amendment Act mandates lottery companies to remit an income tax of 7 percent to the government annually. The higher the industry revenue, the higher the income in taxation for the government.
In the same vein, lottery licenses issued by the National Lottery Regulation Commission are pegged at N50 million, out of a minimum share capital of N100 million for gambling services. For sporting bet permits, gambling services are mandated to pay N30 million.
Given the estimated number of people engaged in gambling activities in Nigeria, the country could even make more. Reports as recent as 2020, for instance, estimate that about one out of every two people engage in betting at least once a day in Nigeria. On the average, these people spend about $5.5 million on gambling every day.
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In 2019, it was reported that gambling services generated about N730 billion at the end of the year. More Nigerians may join with time, considering the projections.
On the flip side however, the projections also suggest that more Nigerians are susceptible to the negative social and psychological effects of gambling. More Nigerians may be victims of compulsive gambling and other related mental health conditions.
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NIGERIA IS COMING TO TERMS WITH THE PROBLEMS OF GAMBLING, BUT IS IT DOING ENOUGH?
Per the available indicators, it appears that Nigeria is beginning to acknowledge the negative consequences of gambling, particularly among the younger population. However, for a nation with a developing gambling culture, there is a conspicuous absence of initiatives to address gambling addiction as a mental health issue, especially among the young demographic.
Working gambling industries — say Europe for instance — protect vulnerable gamblers by actively advocating safe gambling and providing help for problem gamblers.
In the United Kingdom for instance, betting companies are mandated to “actively” promote responsible gambling and refer vulnerable people to helplines and counselling resources made available by the UK National Health Service (NHS).
However, gambling laws in Nigeria are not only vague about protecting consumers from the downsides of gambling but they are also not up to date about recent and emerging challenges.
The National Lottery Act (amended in 2016), for instance, only reads that gambling companies “protect the interests of participating stakeholders and public”. It does not identify clear directives for protection against addiction and other gambling-related mental health issues.
The licensing and operational guidelines also only prohibit underage gambling and mandate companies to include self exclusion; it does not provide any other explicit directives to cater for vulnerable people in the industry
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FIJ sampled 15 random licensed online betting apps in Nigeria, according to the website of the National Lottery Regulatory Commission (NLRC). Out of the 15, only three — Bet9ja, BetPawa and SportyBet — listed helplines for compulsive gamblers that need professional help.
However, none of the available resources belong to a state-owned helpline facility. They either belong to non-governmental organisations or foreign helpline agencies.
To test for accessibility, FIJ called the helplines from September 26 through to October 2. Out of the three available organisations, FIJ could not reach any.
FIJ tried Gamble Alert, the helpline contact recommended by Sporty Bet, four times between the specified date. However, the phone was not answered. The phone numbers listed by BetPawa, belonging to Tranquil and Best Behavioural Health organisation, also did not connect.
As a final indicator, national policies only became inclusive of gambling challenges as recently as 2019. The revised National Adolescent Health Policy in 2019 included underage gambling and gambling addiction as priority areas. The effect, however, did not reflect until 2023, in the budget of the Federal Ministry of Interior.
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WHAT ARE THE STAKEHOLDERS SAYING?
Mrs Akin Olusade (not real name), a public school teacher in Ondo State, believes that advocacy and protection against addiction should come first from the family.
“Family, as they say, is the first agent of socialisation. For instance, my own son emptied his account last year to play bet, thinking he could make more money before he went to school. Mind you, that was not the first time that he would squander even his own money on this thing,” she said.
“I am glad I knew early enough to take him for counselling. I think now that phones are popular, parents should pay more attention to making their children aware of this and protecting against it.”
Speaking on awareness and the availability of data on gambling addiction in general, the Human Development Initiative (HDI), a mental health support organisation, revealed that most people do not consider gambling a serious issue, in an interview with FIJ.
The front desk professional at HDI, who spoke to FIJ, explained that gambling addiction is often linked to suicide and depression.
“Half of the time we get suicide cases. People do not really call for gambling addiction cases. It is along the line that you find that they were into gambling, the lost all their money and they are about to end their own life because of it,” said the professional.
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Mohammed Ahmed Ademola, the Director of Youth Mental Health at Asido Foundation, a mental health advocacy organisation, shed light on the potential challenges facing gambling addiction advocacy and intervention efforts in Nigeria.
In his interview with FIJ, he explained that gambling addiction is a behavioural addiction.
“I don’t think we have a clear position on it yet. So we may not even be able to push for an intervention. It is even more delicate because gambling itself is a business with revenue for the government. It’s like alcohol and tobacco. The best they may be able to do now is to encourage advocacy.”
“For us to justify a call for interventions on gambling addiction, we need more concrete data and information that are localised in Nigeria. We need these things to form the basis of a concrete position.”
“That is why Nigeria has a mental health bill. That is why Nigeria has progressed on the advocacy to decriminalise suicide. It is an important thing to look into, I believe. Youths are involved. Many young people do these things and suffer the bad side effects.”
“As of now, I am not aware of any major intervention targeted at gambling addiction yet.”
The post ANALYSIS: Nigeria Is Raking in Money From Gambling. What About Addicts? appeared first on Foundation For Investigative Journalism.