The Remote Operator Permit is a specialized license issued by the NLRC, allowing foreign-based companies to operate various online gaming activities within Nigeria, provided they already hold a valid gaming license from an internationally recognized regulator. This permit is designed to streamline the licensing process for remote gaming operators and allows them to access Nigeria’s lucrative gaming market without incorporating a local entity.
Regulatory Body
The National Lottery Regulatory Commission (NLRC) is responsible for issuing, regulating, and overseeing remote gaming permits in Nigeria. The NLRC ensures that operators comply amongst others with Nigerian laws and ethical standards, including responsible gaming practices, underage gaming prevention, and anti-money laundering (AML) policies
Scope of the Remote Gaming License
The Remote Operator Permit allows operators to:
Advertise online gaming services to players in Nigeria including the publishing of print media subject to the advertising conditions set by NLRC.
Offer casino games, bingo, slots, sports betting, and poker online game to players in Nigeria.
Utilize payment services made available through NLRC’s dedicated system.
Fully repatriate its revenue/funds from Nigeria provided that tax due and payable on player deposits have first been settled through the dedicated system of the NLRC and to Federal Inland Revenue Service of Nigeria (FIRS).
Subscribe to affiliate programs
Exempt the holder from having to establish a local subsidiary of your company in Nigeria as long as you submit a Non-Residence Registration Request through the Dedicated System to the Federal Inland Revenue Service of Nigeria (FIRS).
Notably, operators holding a Remote Operator Permit are exempt from local incorporation in Nigeria. This exemption simplifies the process and allows them to operate without setting up a Nigerian subsidiary.
Application Requirements
Obtaining a Remote Operator Permit involves a detailed and multi-phase application process with rigorous requirements:
1. Documentation Submission
Application Letter: Stating the applicant’s intent to obtain the Remote Operator Permit.
Game and Operations Details: Information on game events (sports betting, virtual games), distribution channels (web-based, mobile apps), and marketing strategies.
Financial Information: Evidence of financial capability, such as a two-year bank statement, proof of funding, and details of service level agreements (SLAs) with payment solution providers.
Corporate Documentation: Includes the certificate of incorporation, corporate structure, AML and KYC policies, and responsible gaming policies.
2. Technical Documentation
Gaming Platform Architecture: Detailed technical documents on software and hardware specifications.
Player Data Policies: Policies regarding data privacy and third-party data consent are mandatory and must be published on the company’s website.
Systems Integrity: All platforms are required to undergo testing by an NLRC-recognized lab to ensure compliance with standards, with certifications like GLI or iTech Labs being commonly accepted.
Approval Process and Timeline
The NLRC approval process is structured in three phases:
Application Stage: Operators submit the required documentation, and the NLRC conducts a due diligence review.
Provisional Approval: Once the initial application is approved, the operator has 90 days to demonstrate operational capacity, pay permit fees, and execute the Terms & Conditions for remote gaming.
Post-Licensing Compliance: After obtaining the substantive permit, operators must integrate with the NLRC’s Sentinal system, which monitors and processes all player transactions and ensures compliance with tax requirements.
The entire process, from application submission to final permit issuance, can vary depending on the completeness and compliance of submitted documents but generally spans 1-3 months.
Costs and Fees
The cost of the Remote Operator Permit includes:
Application Fee: There is currently no application fee for this permit.
Annual License Fee: $100,000, payable each year over the five-year permit period, totaling $500,000 for the full period.
Gaming Duties: License holders are required to pay a 4.5% tax on all player deposits, which is deducted at the transaction source through the Sentinal platform.
Compliance Costs: Technical compliance, including testing and integration with the NLRC’s systems, may involve additional costs, particularly if operators require updates to their gaming platforms.
It is important to note that holders of the license are exempted from corporate income tax.
However, they must register a ‘Non-Residence Business Request’ with the Federal Inland Revenue Service (FIRS).
Compliance Obligations and Renewal
The Remote Operator Permit has strict compliance requirements:
Responsible Gaming and Data Policies: Operators must maintain policies to prevent underage gambling and protect player data.
Sentinal System Integration: All transactions must be routed through the NLRC’s Sentinal platform to ensure real-time tax deductions.
Annual Renewal: The license is valid for five years, with an annual fee of $100,000. Renewal requires proof of compliance and timely payment of fees.
Non-compliance may result in immediate permit revocation and blacklisting by the NLRC, as well as permanently restricting re-application.
Conclusion
Nigeria’s Remote Operator Permit offers an efficient pathway for international gaming companies to legally operate within Nigeria’s burgeoning online gaming market. Without doubt, the permit provides several advantages. By understanding and adhering to these requirements, remote operators can confidently expand their operations in Nigeria and leverage its large, active gaming audience and booming market.
