Gaming Outlook -Nigeria Gaming Outlook -Nigeria Licensing and Operating a Gaming Company in Nigeria Presented by: Yahaya Maikori

Outline About Nigeria Gaming history Eras of the Nigerian Gaming Industry ◦ era ◦Post 1999 era market share in the gaming industry Industry Revenue Nigeria on the African continent Setting up in Nigeria Lagos as a case study General Entry Requirements for foreign entities: Rules and Regulations General Taxation Requirement

Overview of the Nigerian Gaming Industry Brief history ◦Pools was predominant before lottery was introduced by Ghanaians ◦Largely unregulated and all comers affairs ◦Coupon transactions that was not transparent and prevented accountability ◦Just another (minor) source of revenue for the Internal Revenue Service Pre

Nigerian Gaming Industry Nigerian Gaming Industry Laws and policy Casino taxation 1965 Lagos State Lotto Authority, Cap L33 Lotteries and Pools Betting Law Cap L76 Cross river casino & Gaming Houses(control &licensing) law 1983 Banning on the importation of slot machines Pre (cont’d):

Nigerian Gaming Industry Law & Policy The Constitution of the Federal Republic of Nigeria 1999 Taxes and Levies (approved list for collection) Act 1998 Casino and Gaming Law of Lagos State 2004 National Lottery Regulatory Commission 2007 Partial lifting of ban on slots machine Privatization Post

Post 1999 Era (cont’d) Technology The advent of technology – mobile and internet, has impacted and led to the advent mobile,, online, and retail gaming Mobile/telecom Internet access/ telecom Government cashless society policies Cable/live broadcasts of sports

Gaming industry chart Gaming industry chart

Sample Revenue (Lagos state operator)

Nigeria V Africa : Projections & the future “……….South Africa even with the most mature market, it doesn’t mean that it is going to outgrow Nigeria and Kenya. In fact, PWC gas tipped south Africa as the slowest growing of the 3 markets. Taken all together the 3 regions are expected to generate as much as $2.9 billion by 2017 representing a significant spike interest from gamblers for all gambling options available in the 3 countries” - calvinayre.com “For the forecast period as a whole, gross gambling revenues will expand at a projected 16.3% compound annual rate to $66 million in 2017”. PWC gaming outlook on Nigeria, 2013

Some facts about Nigeria

Setting Up in Nigeria: Lagos as a Case Study Applying for a license Incorporate a Nigerian company or JV with existing company 15% local content (Nigerian ownership) Demonstrate experience, expertise and knowledge of gaming Record in the gaming industry and examination of previous operation in other jurisdiction Demonstrate financial capability and sustainability LSLBNLRCOTHERS LOTTERY 200mil for 5years Varies/emerging SPORTS BETTING 20mil per annum Not regulatedVaries/emerging INTERACTIVE5mil per annum Not regulated PROCESSING PERIOD 3 to 6 months

Registrations,Permits & Others Nigerian Investment Promotion Commission (NIPC) Special Control Unit against Money Laundering (SCUML) National Office for Technology Acquisition and Promotion (NOTAP) Domain name (.ng) Capital Importation Certificate Pension and health scheme Federal Inland Revenue services - Tax Identification Number - Value Added Tax Registration

Tax 1. Federal taxes Education tax Company tax Value added tax With Holding Tax 2. State taxes Withholding Tax (WHT) Personal Income Tax (PIT) Other local taxes Gaming/ good causes taxes

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