Nigerias booming iGaming industry is facing a double blow as both government regulation and telecom policy shifts begin to reshape the landscape.
Recent regulatory adjustments, particularly the shift to a new billing model, are tightening the financial screws on gaming providers across the country. These changes, driven by the National Lottery Regulatory Commission (NLRC), demand that operators pay hefty upfront fees based on projected revenue rather than actual earnings, raising serious concerns about sustainability and cash flow for many businesses.
Meanwhile, players remain largely insulated from these behind-the-scenes shifts. In fact, many are still enjoying perks like new casino no deposit bonus codes, which are easily accessible through NoDepositRewards.org , allowing them to test casino games without dipping into their own funds.
Now, with another significant cost barrier being introduced in the form of End User Billing (EUB) for USSD services, Nigerias mobile-first betting sector is under increasing pressure to adapt or risk losing market traction.
End User Billing: The Cost of Convenience
As of June 2025, telecoms have fully rolled out EUB, transferring the cost of USSD sessions directly to mobile users. Once subsidised by banks, these sessionsused for wallet top-ups, betting transactions, and account verificationnow incur a N6.98 fee (about $0.005) every 20 seconds, deducted from users airtime.
This change may seem negligible, but for Nigerias large base of low-income or micro-transaction bettors, it could discourage repeated use and reduce player engagementespecially in areas with limited internet access, where USSD remains the primary channel.
MTN Nigeria, however, has attempted to ease concerns. The customers were already paying for this. The only difference now is that rather than deduct it from your bank account, it will be deducted from your airtime explained Lynda Saint-Nwafor, Chief Enterprise Business Officer at MTN.
Banking on a Settlement
The EUB rollout comes after the resolution of a long-standing standoff between banks and telecom operators over unpaid USSD fees. Nigerian banks had owed Telcos approximately N180 billion ($122 million). Recently, 13 out of 16 commercial banks settled N171 billion ($116 million), allowing the new billing policy to take full effect.
Gbenga Adebayo, Chairman of the Association of Licensed Telecom Operators of Nigeria ( ALTON ), confirmed that about 95 per cent of the outstanding debt had been recovered, removing the final roadblock to EUBs nationwide enforcement.
Operators Caught Between Cost and Compliance
With the dual pressure of increased regulatory fees and new telecom cost structures, iGaming operators now face rising overheads on multiple fronts. The NLRCs policy, which requires fees based on projected, rather than actual, revenue, is particularly contentious. For smaller operators and startups, this model could prove unsustainable without external funding or sharp user growth.
In response, platforms may begin shifting strategy, optimising app-based experiences, scaling back on USSD reliance, or offering loyalty incentives to retain engagement.
What Does the Future Hold for Nigerias iGaming Ecosystem?
While users continue to explore casino platforms using bonus offers and low-risk promos, providers are navigating an increasingly complex financial terrain. The convergence of telecom policy shifts and regulatory reforms may ultimately reshape how platforms operate, and who survives, in Nigerias highly competitive iGaming space.
One thing is clear, however, the cost of doing business in Nigerias gaming sector has gone up, and only the most pragmatic operators are likely to thrive in this evolving environment.
