Performing the Right Action – iGB
Benjamin Yanap, the leader of the Anambra State Gaming Board, clarifies how the state’s regulatory body is striving to entice gaming enterprises to put money into the state while making certain that players’ rights are safeguarded.
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Performing the Right Action
Benjamin Yanap, the leader of the Anambra State Gaming Board, clarifies how the state’s regulatory body is striving to entice gaming enterprises to put money into the state while making certain that players’ rights are safeguarded.
“A lot of people don’t even know what regulation entails,” Benjamin Yanap stated. “In Anambra, we are performing the right action – we are making sure that every operator is in compliance.”
As the leader of the Anambra State Gaming Board, the regulatory body for this state in southeastern Nigeria, Yanap is accountable for overseeing the state’s gaming industry while making sure that it remains an appealing region for operators.
The regulatory body was set up in 2016 as a shared venture between the Anambra State Investment Promotion and Protection Agency (ANSIPPA) and worldwide gaming companies. Yanap mentioned the move was intended to reduce government bureaucracy and operating expenses.
“The state government understood at the time that they needed to establish a system,” Yanap stated. “Before that, many people were losing out, but even then there were laws, although they were not being enforced.”
In reality, pertinent regulations were established as far back as the 1970s, but they were only rigorously enforced beginning in 2016.
“At present, with the swift advancement of the domestic gaming sector, everyone is recognizing the advantages it provides,” he stated. “The positive aspects include: internally generated funds, tourism, employment opportunities. Naturally, there are also some negative effects, such as addiction problems. We must establish a suitable regulatory framework to ensure both businesses and players can reap the benefits and address the negative issues.”
Complete openness
This prompted Nigeria to implement a licensing scheme, requiring all prospective license holders to register as Nigerian companies and furnish the National Lottery Commission with their equity information, as well as bank guarantees or insurance policies to demonstrate their capacity to operate within the state. Directors also need to undergo background checks to ensure they fulfill their tax responsibilities.
Furthermore, the tax rate for sports betting is 1.5% of gross revenue, lower than other Nigerian states, such as Lagos at 2.5%, Yarnap pointed out. The licensing fee is also comparatively low, at 10 million Naira (£22,770), compared to Lagos’ 50 million Naira.
However, this fee must be paid in addition to the federal betting tax, which is 20% of gross revenue. While acknowledging this double taxation model “is contradictory,” Yarnap believes there is value in obtaining both federal and state licenses.
“I advise anyone to obtain both licenses,” he said.
It might not be enjoyable for business owners to hear they must pay double taxes, but the tax rates are fair enough for robust companies, they can manage two taxes.
If you prepare two plans, you can still break even. As long as you have a good payout rate and provide appealing bonuses or prizes, you’ll succeed.
Ethical Concerns
Although this double taxation model might encourage operators to enter the market without authorization, Yarnap states that illicit gambling is not currently a significant issue, though a reporting system has been established to enable citizens to report illegal activities.
These systems can also be used to report underage gambling, Anambra State has a strict 18+ age limit on all games of chance. Those who break the rules will face penalties or even license withdrawal.
He says this is part of a “one-on-one” responsible gambling approach, including reducing excessive advertising and limiting where betting shops can be opened.
Ultimately, he wants to go further and ensure customers don’t overspend.
“Our goal is to create an automated system that allows us to monitor all the bets,” he said. “This way, if a player bets the equivalent of half their income, we can intervene.”
Healthy Competition
In Yarnap’s opinion, Anambra State is competing with Lagos and Rivers State to become the most appealing starting point for gambling operators.
While it might be the eighth most populated region in the nation, it is also the second most densely populated after Lagos. In 2017, Governor Chief Willie Obiano declared that the region had the lowest poverty rate.
“We are a safe haven for investors here,” said Yarnap. “Our inhabitants have a significant amount of discretionary income and a history of wagering.”
As a consequence, there are many widespread forms of gambling: “We have athletic betting, casinos, lotteries, virtual games, and even raffles where people can win prizes like chickens, which may seem humorous, but it’s very popular.
“We also have pool betting, which is quite large, so we have a variety of different products to cater to different individuals.”
He added that this is almost entirely done through physical channels.
“Every meeting I go to, I hear about massive numbers for mobile gaming growth, but in Nigeria, people prefer physical,” Yarnap explained. “Some companies get as much as 80% of their revenue from physical operations.
He stated that while internet connectivity is not an issue, mobile payments simply haven’t gained the trust of the people, meaning that Anambra state—or Nigeria—shows no sign of following in the footsteps of Kenya’s M-Pesa driven mobile gaming boom.
“It will require some time to catch up. When mobile payments are accepted, we will see growth, but it will take time.
“But just because players aren’t on mobile doesn’t mean the market isn’t expanding,” he continued.
While individuals utilize their mobile devices, they continue to place wagers in physical locations and subsequently claim their prizes at retail establishments, as observed in certain regions of the United States. Currently, there’s a trend towards traditional, physical businesses.
Ultimately, he stated that his role is straightforward: “Operators are obligated to disburse winnings promptly, and bettors must be shielded from gambling-related issues.
“In essence, our objective is to enhance the industry’s safety and regulatory oversight,” he further elaborated. “This initiative specifically targets those who approach gaming with seriousness.”
Benjamin Anaup will be a participant in the “Keeping Up with Times: Regulators Keeping Pace with Technological Innovation” panel discussion on the second day of the ICE Africa event, scheduled for October 2-3 at 11:15. For additional details, please visit the designated website.
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