CASINO AND GAMING REGULATIONS LAW OF LAGOS STATE
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CASINO AND GAMING REGULATION LAW
ARRANGEMENT OF SECTIONS
1. General Applications
2. Application for licence.
3. Withdrawal of application.
4. Rectification of disqualifying Circumstances.
5. Disqualified from making profit.
6. Application for licence to submit rules for proposed Games.
7. Form of licence.
8. Licence Fees.
9. Gaming Tax.
10. Payment of gaming Tax.
11. Penalty for late Payment of gaming tax.
12. Failure to record taxable Revenue and render accurate Returns.
13. Condition of Licence
14. Resolution of Disputes.
15. Appeal to the Authority.
16. Non-payment by patrons.
17. List of excluded persons
18. Entry of names.
19. Refusal of entry to license Premises.
20. Cheating and other fraudulent Acts.
21. Employee Registration.
22. Suspension or Revocation of Registration.
23. Serving of Notices
24. Bank Guarantee
25. Undesirable Advertising.
26. Certification and Registration of Equipment.
27. Maintenance of Registered Equipment.
28. Equipment to be of Approved type.
29. Records to be kept by Licensee.
30. Stakes and Prizes.
31. Credit Extension.
32. Prohibited Transactions by Licensees.
33. Suspension and Revocation of Licences.
34. Records, books and Accounts to be kept by Licensee.
35. Audited Financial Statements.
36. Other Records.
37. Returns to be Rendered.
38. Reserve fund to be kept by Licensee.
39. Financial Interests in Licensee.
40. Internal Controls.
41. Specifications for Chips and Tokens.
42. Use of Chips and Tokens.
43. General Requirements for Surveillance and Security Systems.
44. Surveillance systems: Count Rooms and Casino Cage.
45. Surveillance systems: Table Games and Card Rooms.
46. Surveillance Systems: Gaming Machines.
47. Surveillance systems: Casino Security Offices.
48. Casino Surveillance System Equipment Malfunctions.
49. Surveillance System Recording Requirements.
50. Compliance with Surveillance Systems Requirements.
51. Interpretation.
52. Citation and Commencement
CASINO AND GAMING REGULATIONS 2008
L.S.L.N NO. 26 OF 2008
In exercise of the powers conferred by Section 31 of the Casino and Gaming Law, 2007 and all other powers enabling him in that behalf, the Commissioner for Finance in Lagos State, makes the following Regulations—
1. General Applications.
(1) Any license, registration, certificate of suitability, authorization or consent granted by the Approving Authority (referred to in these Regulations as the “Authority”) shall be deemed to be irrevocable depending on continuous suitability for licensing, registration, authorisation or consent and, without limiting the Authority’s right to conduct an investigation.
(2) The Authority shall have the right at any time to call for such information, to be submitted to it within 14 days or such longer period as it may allow, and deem necessary to satisfy itself as to such continuous suitability.
(3) Any person applying for a licence, registration authorisation or consent shall satisfy the Authority that he is qualified to be granted such licence, registration, certificate, authorisation or consent, as the case may be.
(4) The Authority shall not be liable for any act of omission done or conduct carried out in good faith in the execution of its duties the provisions of the Law and there regulations.
(5) No official, employee or agent of the Authority shall be held liable for any act or omission done or conduct carried out in good faith—
(a) in the execution of their duties under the provisions of the Law these regulations, or
(b) in respect of the delegation granted to such officials, employees or agents by the Authority.
(6) The minutes of meetings of the Authority shall, subject to section 5(6) of the Casino and Gaming Law (referred to in this Regulations as the Law), be open to public inspection by interested persons at the offices of the Authority, during the normal office hours.
2. Application for licence.
(1) An application for a licence to establish or operate a Casino under these regulations shall be made in the prescribed manner set out in Form A of the forms in the First Schedule to these Regulations and shall contain and be accompanied by such documents and Information as may be specified or required by the Authority.
(2) It is grounds for denial of an application and an offence punishable by a fine not exceeding five million Naira (N5,000,000.00) or imprisonment for a term not exceeding six (6) months or to both such fine and imprisonment, for any person to—
(a) make any false statement of material fact in any application submitted to the Authority, knowing it to be false;
(b) omit to state in any such application any material fact required to be stated; or
(c) present a misleading statement as a material fact.
(3) It is the duty of an applicant to ensure that all information in an application are true and complete at the time the Authority considers the application and should anything stated in an application change the applicant shall promptly notify the Authority.
(4) An applicant who may, with the approval of the Authority, be amended in any respect at any time prior to final consideration by the Authority.
3. Withdrawal of application.
(1) A written request for withdrawal of an application may be submitted at any time prior to final consideration by the Authority.
(2) The Authority may, in its discretion, grant the request.
4. Rectification of disqualifying Circumstances.
An applicant who may be disqualified under Section 11 of the Law, may prior to disqualification, be granted a reasonable period, not exceeding 60 days, as may be determined by the Authority, to rectify the disqualifying circumstances.
5. Disqualified from making profit.
A person, who is the direct or effective cause of any disqualifying circumstance of an applicant, shall not accept more for his interest in the applicant than such person paid for it, or such greater amount approved by the Authority.
6. Application for licence to submit rules for proposed Games.
(1) Every applicant for a licence to establish or operate a Casino shall through the Authority, submit with every application, the type of fames proposed for the Casino and rules for the games. The rules shall include the maximum percentage of commission to be deducted in play and the odds to be paid.
(2) The Authority may approve or reject any game or rule so submitted, or approve same, subject to such amendments as any be considered necessary.
7. Form of licence.
Every licence issued under these regulations shall be in the manner prescribed by the Authority.
8. Licence Fees.
(1) There shall be chargeable—
(a) in respect of any application submitted to the Authority, an application fee or two hundred and forty million Naira (N240,000,000.00);
(b) in respect of every premises in which a Casino is established or operated an annual licence fee of One hundred and twenty million Naira (N120,000,000.00)
(2) The license fee payable under paragraph (1) (a) above shall be paid to the Authority on issuance of the licence.
(3) The licence fee payable under paragraph (1) (b) above shall be paid to the Authority on or before the 31st of December of every year. The first payment will commence the year ending twenty four(24) months after the payment of the licensee fee payable under paragraph (1) (a).
(4) If the licence fee payable under paragraph (1) (b) and not paid in accordance with paragraph (3), the licensee shall pay a penalty on the amount of any licence fee outstanding at a rate of five percent (5%) of the Licence fee for each week or part of a week during which the licence fee remains unpaid:
Provided that such penalty shall not exceed twice the amount of the licence fee in respect of which such penalty is payable.
(5) Where the Chief Executive Officer, described in Section 8 of the Law, is satisfied that failure on any licensee to make payment of the licence fee within the prescribed period was not due to an intent to avoid or postpone liability for payment of the amount due, the Chief Executive Officer may remit in whole or in part any penalty payable under these Regulations.
(6) The Authority may from time to time review the license fees indicated under paragraph 1 above.
9. Gaming Tax.
(1) The gaming tax payable under Section 24 of the Law shall be paid at the rate of 3% percent of the licensee’s gross gaming revenue.
(2) For each table game, gross gaming revenue equals the closing bankroll plus credit slips for cash, clips, or tokens returned to the Casino cage, plus drop, less opening bankroll and fills to the table.
(3) For each gaming machine, gross gaming revenue equals metered win or loss.
(4) For each card game and any other game in which the licensee is not a party to a wager, gross gaming revenue equals all money received by the licensee as compensation for conducting the game.
(5) If in any tax period, the amount of gross gaming revenue is less than zero, the licence may deduct the excess in the succeeding tax periods, until the loss is fully offset against gross gaming revenue.
10. Payment of gaming Tax.
(1) Every licensee shall—
(a) not later than the 7th day of each month submit a return in the specified form, containing such information as may be required, in respect of its gaming operations during the preceding month; and
(b) simultaneously pay to any gaming tax due in respect of the preceding month.
(2) The preceding month contemplated in subparagraph (1) of this paragraph shall be the month ending at the close of a licensee’s gaming day on the proceeding Sunday, at the time stipulated in the licensee’s approved system of internal control.
11. Penalty for late Payment of gaming tax.
(1) If the gaming tax payable under Section 24 of the Law is not paid, the licensee shall pay a penalty on the amount of any outstanding tax at the rate of two percent (2%) of the tax for each week or part of a week or part of a week during which the tax remains unpaid: Provided that such penalty shall not exceed twice the amount of the tax in respect of which such penalty is payable.
(2) Where the Chief Executive Office is satisfied that the failure on the part of any licensee to pay the tax within the prescribed period was not due to an intent to avoid or postpone liability for payment of the amount due, he Chief Executive Officer may remit in whole or in part any penalty payable under this Regulation.
12. Failure to record taxable Revenue and render accurate Returns.
(1) A licensee who wilfully fails to record revenue in the records and in the format in which it should be recorded under the provisions of these Regulations or any rule of the Authority, shall be guilty of an offence and shall be liable on conviction to a fine not exceeding ten million Naira (N10,000,000.00).
(2) A licensee who wilfully furnishes false or misleading information in any return required by those Regulations shall be guilty of an offence and shall be liable on conviction to a fine not exceeding ten million Naira (10,000,000.00) or imprisonment for a term not exceeding five years (5) or to both such fine and imprisonment.
13. Condition of Licence
Every licence shall be subject to the following conditions in addition to any other conditions as may be endorsed on the licence—
(a) the licensed casino shall be established and operated in accordance with the provisions of the law of The Lagos State Government, The Lagos State Casino and Gaming Law 2007, and the Regulations and, the terms and conditions of the licence and directions given by the Regulatory Authority from time to time.
(b) the Casino may be kept open to the public for gaming 24 hours per day, 365 days per year.
(c) The licensee shall ensure that—
(i) all casino installations, equipment and procedures for security and safety purposes are used, operated and applied in a manner which will best serve the interests of the public attending the licensed casino;
(ii) the operations of the licensed casino are conducted at all times in a proper competent manner;
(iii) all facilities and amenities in the licensed casino are maintained at all times in such condition as to provide for the comfort and convenience of the public attending the licensed casino;
(iv) adequate security, supervision and control is maintained by the licensee in areas and places located on the licensed premises to provide for the security, safety and convenience of the public attending the licensed casino;
(d) the licensee shall comply to the satisfaction of the Board with all undertakings given in its licence application and stipulations issued by the Board based on the aforesaid undertakings;
(e) this licence is a revocable privilege contingent upon continuous suitability for licensing;
(f) the licensee shall, in the conduct of its business deal only with reputable third parties;
(g) the licensee shall not be in any form of default that may place the licence in jeopardy;
(h) the Board may in terms of Section 34 of the Law impose on the licensee certain penalties for failure to comply with, or contravention of, any term or condition of this licence, which includes inter-alia, suspension, or revocation of the licence;
(i) all games shall be played in accordance with rules approved by the Authority and the licensee shall on application, supply a copy of such rules free of charge to any person who takes part in the game;
(j) no premises other than the premises specified in the licence shall be used for the purpose of playing as game approved by the Authority under these Regulations;
(k) a copy of the licence shall be prominently displayed in a conspicuous place in the Casino;
(l) the maximum percentage of commission that may be taken by a licensee on prescribed games shall be twenty-five per centum, and the maximum odds that that may be paid shall be, where applicable, 35 n 1 in roulette and evens in other games;
(m) a licensee shall deliver to the Authority in such form as the Authority may prescribe, daily and monthly returns of gamin;
(n) a licensee shall make adequate arrangements with the Police for security and the prevention of fraud on players in the casino and shall on request at any time, in the course of a play, permit any superior police officer in uniform to enter the Casino;
(o) The word ‘Casino’ shall be prominently displayed on the exterior of the premises which house licensed premises;
(p) A Casino licensee must have a central computer or such other approved monitoring system, connected to all gaming machines exposed for play, to record and monitor the activities of such machines.
14. Resolution of Disputes.
(1) A disputed claim for payment of a gambling debt may be resolved by the Authority in accordance with this Regulation
(2) Whenever a dispute arises as between a patron and a licensee, as to the payment of alleged winnings or a precise amount of the winnings to the patron by the licensee, or payment of a gambling debt or a precise amount of the debt by a patron to the licensee, and other parties are unable to resolve the dispute, then—
(a) either party or both of them shall refer the dispute to the Chief Executive Officer of the Authority or his delegate for resolution;
(b) the Chief Executive Officer shall, upon referral of the dispute, expeditiously resolve the dispute.
(3) For the purposes of resolving the dispute, the Chief Executive Officer may conduct inquiries, inspect books or documents and question such persons as are necessary or relevant or connected to the dispute: Provided that the Chief Executive Officer shall afford both the patron and licensee an opportunity to present their cases to him before he resolves the dispute.
(4) The Chief Executive Officer’s decision on the dispute shall, save in the case of appeal, be final and binding on the parties.
(5) After making a decision on the dispute, the Chief Executive Officer shall inform a Party aggrieved by his decision that such a party has a right of appeal against such decision to the Authority.
(6) Save where an appeal has been lodged under the provisions of these Regulation, the party against whom the Chief Executive Officer has made a decision shall be obliged to pay the winnings or gambling debt within a period to be determined by the Chief Executive Officer.
(7) The Chief Executive Officer may delegate any power, function or duty under this Regulation to any member of staff of the Authority, on such conditions as he may determine.
15. Appeal to the Authority.
(1) A patron or licensee aggrieved by the decision of the Chief Executive Officer may, within fourteen (14) days of being notified of such decision, lodge an appeal in writing to the Approving Authority.
(2) The appeal shall be determined and be heard by the Authority in such a manner and in accordance with such procedure as the Authority may determine: Provided that the Authority shall afford the parties to the appeal the opportunity to present their cases before it makes a decision on appeal.
16. Non-payment by patrons.
Where a patron is obliged to pay gambling debt in terms of an order made by the Chief Executive Officer and has not appealed to the Authority against the said order, or is obliged to pay a gambling debt in terms of an order made by the Authority on appeal and has not made an application for review on the Authority’s decision or order, but fails to make such a payment, the Authority may include such a patron’s name in the list of excluded persons, in accordance with Regulation 17 of these regulations.
17. List of excluded persons
(1) The Authority may establish a list of persons who are to excluded or ejected from such licensed premises
(2) The criteria to be applied by the Authority for inclusion of a person upon the list established in subparagraph (1) of this paragraph are—
(a) contravention of the gambling laws of any country;
(b) non-payment of gambling debts;
(c) any court order prohibiting such person from entering any or specific licensed premises; or
(d) any conduct which in the opinion of the Authority is undesirable.
18. Entry of names.
(1) Before a name is placed on the list, the Authority shall first review the information and evidence in it’s possession and make a determination that there is sufficient reason to believe that any one of the criteria specified in Regulation 17 of these Regulations is applicable to the candidate.
(2) No name shall be placed on the list until such time as the person concerned has had notice of the intention of placing his or her name on the list and had been given an opportunity to be heard: Provided that the provisions of this paragraph shall not be applicable to a person whose name appears in exclusion lists of any other gambling regulatory body.
(3) Failure to respond to an invitation by the Authority to be heard or failure to request the opportunity to be heard shall not result in the Authority being prevented from conduction such a hearing in the absence of that person, and from placing that person is name on such a list of the evidence is sufficient.
(4) Any person whose name has been placed on the list may, upon payment of such fee as the Authority may determine, petition the Authority in writing and request that his name be removed from such list, specifying the grounds believed by the petitioner to constitute good cause or removal of his name
(5) The Authority shall, within sixty (60) days of receipt of a petition, either deny the petition or set the petition for hearing.
(6) The burden of showing good cause for removal from the list shall at all times rest with the petitioner.
(7) An excluded person who knowingly enters licensed premises from which he is excluded or knowingly partakes in any gambling from which he is excluded, shall be guilty of an offence and shall be liable on conviction to a fine not exceeding five million Naira (N5,000,000.00) or imprisonment for a term not exceeding five (5) year or to both such fine and imprisonment.
Refusal of entry to license Premises.
19. A licensee shall refuse any person not authorised under this Law, entry to, or prohibit a person from remaining on, its licensed premises.
20. Cheating and other fraudulent Acts.
(1) Any person found cheating at a gambling game shall be guilty of an offence and shall be liable on conviction to a fine not exceeding ten million Naira (N10,000,000.00) or imprisonment for a term not exceeding five (5) years or to both such fine and imprisonment.
(2) Any person found at a license premises using or possessing, with the intent to use, any device to assist—
(a) in projecting the outcome of a game;
(b) in keeping track of the cards played;
(c) in analyzing the probability of the occurrence of an event relating to a game; or
(d) in analyzing the strategy for playing or betting to be used in a game, except as approved by the Authority in writing, upon the written request of a licensee,
Shall be guilty of an offence and shall be liable on conviction to a fine not exceeding ten million naira (N10,000,000.00) or imprisonment for a term not exceeding five (5) years or to both such fine and imprisonment.
(3) The provisions of subparagraph (2) of this paragraph shall not be deemed to prohibit—
(a) the making and referring to handwritten records of the cards played at punto banco or baccarat; or
(b) the making and referring to handwritten records of roulette results.
(4) Any person who—
(a) alters or misrepresents the outcome of a casino game or other event on which wagers have been made after the outcome is determined but before it is revealed to the players.
(b) places, increases or decreases a bet or determines the course of play after acquiring knowledge, not available to all players, of the outcome of the game or any event that affects the outcome of the game or which is the subject of the bet or aid anyone in acquiring such knowledge for the purpose of placing, increasing or decreasing a bet or determining the course of play contingent upon that even or outcome;
(c) claims, collects or takes, or attempt to claim, collect or take, money or anything of value in or from any gambling activity, with intent to defraud, without having made a wager contingent thereon, or to claim, collect or take an amount greater than the amount won;
(d) places or increases a bet after acquiring knowledge of the outcome of the game or other event which is the subject of the bet;
(e) reduces the amount wagered or cancels the bet after acquiring knowledge of the outcome of the game or other event which is the subject of the bet; or
(f) manipulates, with the intent to cheat, any component of a gaming device in a manner contrary to the designed and normal operational purpose for the component, with the knowledge that the manipulation affects the out come of the game or with the knowledge that the manipulation affects the outcome of the game or with the knowledge of any event that affects the outcome of the game of the amounts won or lost.
Shall be guilty of an offence and shall be liable on conviction to a fine not exceeding ten million Naira (10,000,000.00) or imprisonment for a term not exceeding five (5) years or to both such fine and imprisonment.
(5) Any person found using counterfeit chips or other counterfeit wagering instruments in a Casino game or has such chips or wagering instruments in his possession, shall be guilty of an offence and shall be liable on conviction to a fine not exceeding ten million Naira (10,000,000.00) or imprisonment for a term not exceeding five (5) year or to both such fine and imprisonment.
(6) Any licensee, or his officers, employees or agents may question any person in his licensed premises suspected of contravening any of the provisions of this Regulation.
(7) Any licensee, or his officers, employees or agents who has reasonable cause for believing that there has been a contravention of this Regulation by any person, may take that person into custody, inform the Nigeria Police Force or any other authorised person and detain such person in the establishment in a reasonable manner until the arrival of a police officer of any other authorised person.
(8) Any object or device used or capable of being used for cheating at a gambling game may be seized by an Inspector or police officer or any other authorised person.
(9) Any object or device contemplated in subparagraph (8) may not be returned to the owner or any other person and must be retained or destroyed in the manner determined by the Authority.
21. Employee Registration.
(1) For the purposes of registration, a Casino employee shall be such person that has a Casino Occupation as defined in Section 34 of the Law and is an employee of a Licensee.
(2) A licensee shall not employ anybody in a Casino occupation until such time as the prospective employee has applied for and has been granted registration as a Casino employee by the Authority.
(3) Every Casino employee shall have his registration card or certificate available for inspection in sub manner as the Authority may determine at all times when such person is on duty.
(4) A Casino employee may work in the licensed premises as soon as his application has been received for processing by the Authority.
(5) A licensee shall, in respect of every employee required to be registered under this Regulation, keep a copy of such employee’s registration card or certification the employment record of that employee.
22. Suspension or Revocation of Registration.
(1) If an employee, required the registered under this Regulation has his registration—
(a) revoked by the Authority, the licensee that employed such a person shall summarily terminate the employment of that person in any capacity in which he is required to be so registered, or
(b) suspended by the Authority, the licensee that employed such a person, shall summarily suspend the employment of that person in any capacity in which he is required to be so registered, for the period of suspension by the Authority, without liability on the part of the licensee.
(2) The provisions of subparagraph (1) of this paragraph shall be a condition of employment.
23. Serving of Notices
23. (1) Any notice to be given to a person by the Authority under the provisions of the Law or these Regulations shall be given by—
(a) personal delivery;
(b) registered mail;
(c) facsimile transmission; or
(d) e-mail
(2) Any notice given by the Authority under subparagraph (1) of this paragraph shall be deemed to have been received—
(a) in the case of personal delivery, upon delivery of the notice to such person’s address physically;
(b) in the case of registered mail, fourteen (14) days after it has been posted;
(c) in the case of facsimile transmission, at 10.00 hours on the first day of business following the date of transmission; or
(d) in the case of e-mail at 10.00 hours on the first day of business following the date of transmission
24. Bank Guarantee
(1) An applicant is Casino licence shall not be issued unless the Authority is satisfied that properly documented arrangements have been made between the applicant and a licensed commercial bank or financial institutions such that if the licence is granted, the bank will unconditionally guarantee payment of any winnings or debt owed to the State Government which the licensee may be liable to pay in respect of business conducted by him during the period the licence is valid up to an aggregate of ten million Naira (N10,000,000.00), depending on the highest jackpot offered by the licensee.
(2) Subject to subparagraph (3) of this Paragraph, it shall be the duty of the licensee to ensure that the arrangements mentioned in subparagraph (1) of this paragraph remain in force throughout the period of the validity of the licence is liable to pay in respect of business conducted by him during the period of the validity of the licence have been paid.
(3) If, on an application made to it under this paragraph, by the holder of a Casino licence, the Authority is satisfied, as regards that licence, that all sub winnings as are mentioned in subparagraph (2) of this Paragraph have been paid, it may give written consent to the termination of the arrangement mentioned in subparagraph (1) of this paragraph; and the arrangement mentioned in subparagraph (1) of this paragraph; and the arrangements shall be terminated accordingly.
(4) If any such arrangements as are mentioned in subparagraph (1) of this paragraph (1) of this Paragraph are terminated except with the consent of the Authority, under subparagraph (3) of this Paragraph, at any time while it is the duty of a company who is the holder of a Casino licence to secure that they remain in force, that company shall be guilty of an offence and be liable on conviction to a fine not exceeding five million Naira (N5,000,000.00) or imprisonment for a term not exceeding five (5) years or to both such fine and imprisonment.
25. Undesirable Advertising.
(1) A specific advertisement or form of advertising shall undesirable if, in the opinion of the Authority—
(a) it is offensive;
(b) it is misleading;
(c) it is in bad taste; or
(d) it is not in the public interest.
(2) The Authority may, after affording a licensee the opportunity to be heard, by written notice to a licensee, declare any advertisement or form of advertising undesirable on any of the grounds specified in subparagraph (1) of this Paragraph.
(3) No licensee may conduct advertising declared undesirable by the Authority under subparagraph (2) of this Paragraph.
26. Certification and Registration of Equipment.
(1) A licensee shall not keep or maintain any of the following equipment which has not application in the manner and form determined by the Authority, been separately approved and registered by the Authority.
(a) roulette tables;
(b) roulette wheels;
(c) blackjack tables;
(d) craps tables;
(e) punto banco tables;
(f) bacarrat tables
(g) poker tables;
(h) gaming machines;
(i) dice; and
(j) such other equipment as the Authority may determine;
(2) A licensee may at any time, in the manner and form determined by the Authority, apply for the de-registration of equipment registered under sub-paragraph (1) of this paragraph.
27. Maintenance of Registered Equipment.
A licensee shall not alter the operation of registered equipment without the prior approval of the Authority and shall maintain all equipment in a suitable condition.
28. Equipment to be of Approved type.
Subject to Regulation 46, of these Regulations, a licensee shall not keep or expose for play any equipment which may be used in the operation of a game other than equipment which is identical in all material respects to equipment approved by the Authority for distribution by the manufacturer or applier.
29. Records to be kept by Licensee.
A licensee shall keep such records in respect of equipment contemplated in these Regulations the Authority may require or approve.
30. Stakes and Prizes.
(1) Table game—
(a) a minimum and maximum stakes allowed as may be determined by the Authority and the prizes payable in respect of winning wagers applicable to every licensed game shall at all times be displayed on the table or in a conspicuous place immediately adjacent.
(b) Payoff schedules or award cards must accurately state actual payoffs or awards applicable to the particular game and shall not be worded in such a manner as to mislead or deceive the public.
(2) Gaming machines;
(a) Gaming machines exposed for play must have a theoretical and demonstrable return to the public of not less than ten percent (10%)
(b) All winning combinations together with the corresponding prizes must be clearly displayed or be easily accessible by the player on every gaming machine exposed for play.
31. Credit Extension.
(1) A licensee may extend credit, subject to such limits as may be determined by the Authority, to qualified patrons provided that prior to the extension of credit, the licensee obtains and documents in its records, sufficient information regarding the patron’s identity, credit history and financial capabilities in such manner as required by the licensee is approved system of internal control.
(2) Failure by a licensee to deposit for collection negotiable instrument by the close of the banking day following its receipt, or the banking day following the completion of a continuous and uninterrupted residence by the patron concerned in the accommodation facilities located at the same licensed premises of the license whichever is the later, shall be deemed to be an extension of credit.
32. Prohibited Transactions by Licensees.
(1) Cash shall not be exchange for cash except to enable the patron to participate in gaming where cash is used as the stake or for the purpose of converting such cash after participation in gaming.
(2) A cheque or other negotiable instrument shall not be issued nor shall any transfer of funds be effected on or on behalf of a patron in exchange for cash or other negotiable instrument, chips or tokens unless the licensee is satisfied that the patron has genuinely participated in gaming.
33. Suspension and Revocation of Licences.
A licence may be suspended or revoked if—
(a) upon the complaint made by the Commissioner of Police for the State, the Authority is satisfied that the licensee had failed to comply with any of the requirements of his licence, or the provisions of the Law or this Regulations;
(b) the Authority is satisfied that it is in the public interest so to do; or
(c) in any criminal proceeding however arising, the court recommends to the Authority that the licence be revoked.
34. Records, books and Accounts to be kept by Licensee.
(1) The records, books and account which licensees are under this Regulations bound or keep, shall be in such form as the Authority may from time to time prescribe.
(2) All records required to be kept by a licensee under this Regulations shall be retained by the licensed or a period of at least three (3) years.
(3) Each licensee shall keep generally accepted accounting records on a double entry system of accounting maintaining detailed, supporting subsidiary records identifying revenue, expenses, assets, liabilities and equity; and
(a) gaming machine analysis reports which by each machine reflects turnovers and payouts and compare actual hold percentages to theoretical hold percentages on a daily, monthly, quarterly, annual rolling basis;
(c) the records required by the licensees approved system of internal control;
(4) Any other records that the Authority specifically requires to be maintained.
35. Audited Financial Statements.
(1) Each licensee shall, in order to comply with subparagraph (3) of this Paragraph, after the end of each financial year, prepare annual financial statements in accordance with statements of generally accepted accounting practices.
(2) Each licensee shall engage an independent auditor registered by the Chartered Institute of Accountant in Nigeria, who shall audit the licensee’s annual financial statements in accordance with generally accepted auditing standards.
(3) Each licensee shall submit to the Authority two copies of its audited annual financial statements and any report communication the results of the audit, including management letters, not later tan ninety (90) days or such extended period as the Authority may determine, after the last day of the licensee’s financial year.
(4) The Authority may request additional information or documents from either the licensee or the auditor of the licensee, through the licensee, regarding the financial statements or the services performed by the auditor.
36. Other Records.
Each licensee shall keep at it’s licensed premises or registered offices and shall provide to the authority on its request, the following records or documents or its equivalent.
(a) a copy of the memorandum and articles of association of the company, including any amendment;
(b) a copy of the company’s certificate to commence business;
(c) a register of all current and former officers and directors;
(d) a register of all shareholders listing each shareholder’s name, address, the number of shares held and the date the date the shares were acquired; and
(c) any other record that the Authority specifically requires to be maintained.
37. Returns to be Rendered.
Each licensee shall, in the manner and format determined by the Authority, submit such information at such intervals as the Authority may determine.
38. Reserve fund to be kept by Licensee.
Every licensee shall keep in respect of each Casino a reserve fund of ten million naira (10,000,000.00).
39. Financial Interests in Licensee.
(1) No person may hold or acquire any interest in a licensee as agent or nominee for an undisclosed principal or beneficial owner
(2) Any person who contravenes, or fails to comply with, the provisions of this Regulation, shall be guilty of an offence and shall be liable on conviction to a fine not exceeding five million naira (5,000,000.00)
40. Internal Controls.
(1) Each licensee shall establish and maintain administrative and accounting procedures for the purpose of determining the licensee’s liability for taxes and fees under the Law and for the purpose of exercising effective control over the licensee’s internal financial affairs.
(2) The procedures must be designed to reasonably ensure that—
(a) assets are safeguarded;
(b) financial records are accurate and reliable;
(c) transactions are performed only in accordance with management’s general or specific authorization;
(d) transactions are recorded adequately to permit proper reporting of gaming revenue and of fees and taxes; and
(e) function, duties and responsibility are appropriately segregated and performed in accordance with sound practices by competent, qualified personnel.
41. Specifications for Chips and Tokens.
(1) Chips and tokens must be designed, manufactured, and constructed in compliance with the Law and these Regulations so as to prevent counterfeiting of the chips and tokens.
(2) Chips and tokens must not deceptively resemble any current or past coinage of the State or any other Nation.
(3) In addition to such other specifications as the Authority may approve—
(a) the name of the issuing gaming establishment must be inscribed on each side of each chip and token, and the city or other area where the establishment is located must be inscribed on at least one side of each chip and token, other than chips used exclusively at roulette;
(b) the value of the chip or token must be inscribed on each side of each chip and token, other than chips used exclusively at roulette;
(c) the manufacturer’s name or a distinctive logo or other identification mark of the manufacturer must be inscribed on at least on side of each chip and token, other than chips used exclusively at roulette; and
(d) each chip must be designed to that when stacked with chips and tokens of other denominations and viewed on closed circuit television, the denominations of the chip can be distinguished from that of the other chips and tokens in the stack.
42. Use of Chips and Tokens.
(1) A licensee that uses chips or tokens at its gaming establishment shall—
(a) comply with the Law pertaining to chips or tokens;
(b) sell chips and tokens only to patrons of its gaming establishment and only at their request;
(c) promptly redeem its own chips and tokens from its patrons;
(d) post conspicuous signs at its establishment notifying patrons that the law prohibits the use of the licensee’s tokens, and that these Regulations prohibit the use of the licensee’s chips, outside the establishment for any monetary purpose whatever; and
(e) take reasonable steps, including examining chips and tokens and segregating those issued by other licensees to present sales to its patrons of chips and tokens issues by another licensee.
(2) A licensee shall not redeem its chips or token if presented by a person, the licensee knows or reasonably should know, is not a patron of its gaming establishment.
43. General Requirements for Surveillance and Security Systems.
(1) The Authority shall have discretion under this Regulation to demand varying levels of requirements of surveillance and security systems from one licensee to another licensee.
(2) Every licensee shall install, maintain and operate at all times a surveillance system comprised of camera, monitors, video recorders, and a video printer, that provides the coverage required by this Regulation.
(3) the surveillance system must include date and time, generators that display on each videotape recording the date and time of the recorded events and the displayed date and time must not obstruct the recorded view.
(4) All equipment that may be utilized to monitor or record views obtained by the surveillance system must be and remain located in a room used exclusively for Casino surveillance purposes and the entrance to the surveillance room must be located away from the view of Casino employees and the general public.
(5) The Authority and its agents shall at all times be provided immediate access to the surveillance room and other surveillance areas.
(6) The surveillance system and its equipment must be directly and securely wired in a way to prevent tampering and an auxiliary power source must be available and capable of providing uninterrupted power to te surveillance system in the event of a power loss and provide sufficient lighting to operate the surveillance system.
(7) The licensee must have the capability of creating first generation copies of video surveillance tapes that are standard VHS format or other format approved by the Authority.
44. Surveillance systems: Count Rooms and Casino Cage.
(1) Every licensee shall install, maintain, and operate at all times a surveillance system that monitors and records clear unobstructed views of all area and transactions within—
(a) the room for purposes or hard count and soft count any area where uncounted coin is stored during the drop and count process, including walls, doors, scales, wrapping machines, coin sorters, vaults, safes, and general work surfaces;
(b) the room for the hard count and the soft count, including walls, doors drop boxes, vaults, safes, and counting surfaces that must be transparent; and
(c) the Casino cage, including customer windows, employees window, cash drawers, vaults, safes, counters, chip storage, and fill windows.
(2) All transactions within the room for hard count and soft count and Casino cage, must be recorded with sufficient clarity to permit identification of each employee and his movements, and to permit identification of all currency; coins and paperwork.
(3) The room for hard count and soft count shall have audio monitoring and recording capabilities.
(4) The soft and hard count room tapes must be retained for a minimum of thirty (3)) days.
45. Surveillance systems: Table Games and Card Rooms.
(1) Every licensee who operates table games or a card room shall install, maintain, and operate at al times a surveillance system that possesses the capability to monitor and record clear and unobstructed views of the following—
(a) all table game and card room areas with sufficient clarity to permit identification of all dealers, patrons, spectators and pit personnel;
(b) all table games or card table surfaces, including table bank trays, with sufficient clarity to permit identification of all chip, cash, dice and card values, and the outcome of the game;
(c) roulette tables and wheels so as to permit views of both the table and the wheel on one monitor screen;
(d) all drop boxes and table numbers; and
(e) all card room or podium banks, including any drawers, cabinets and safes.
(2) The surveillance system must have the capability to view and record simultaneously both the table game area and the table game surface.
46. Surveillance Systems: Gaming Machines.
(1) Every licensee who exposes gaming machines for play shall install, maintain, and operate at all times a surveillance system that possesses the capability to continuously monitor and record clear, unobstructed overall, and continuous views of all areas that contain gaming machines with sufficient clarity to identify all patrons and employees.
(2) Every licensee who exposes gaming machines for play shall install, maintain, and operate at all times a surveillance system that possesses the capability to monitor and record clear and unobstructed views of all slot change booths, including their cash drawers, counter tops, counting machines, customer windows, and employee windows, recorded with sufficient clarity to permit identification of all transactions, cash, paperwork, patrons and employees.
47. Surveillance systems: Casino Security Offices.
(1) The surveillance system must cover all areas of any security office in which any person may be detained, questioned, interviewed or interrogated by Casino security officers.
(2) Security office coverage must include both audio and video and it must be recorded at all times that a person is detained, questioned, interviewed or interrogated there, and the signal must terminate in the surveillance room
(3) The recordings must be retained by the licensee for at least fourteen (14) days after the recorded even.
(4) In each office or room covered by this Regulation, a sign must be conspicuously displayed which states that the area is under constant audio and video surveillance.
48. Casino Surveillance System Equipment Malfunctions.
(1) Every licensee shall establish and maintain a written log of any and all Casino surveillance system equipment malfunctions, and retain the log for at least one (1) year after the date of the most recent entry in the log.
(2) Each malfunction must be repaired within 24 hours.
49. Surveillance System Recording Requirements.
(1) In addition to any other videotape recording requirements that are or may be imposed under Regulation 43, 44, 45, 46, 47, and 48 of this Regulations, every licensee shall record all view, activities, and locations as the Authority may from time to time require, with shall also include all entrances and reception areas.
(2) Every licensee shall videotape record and maintain a written log of all activities observed by Casino surveillance personnel that appear unusual or irregular, or that violate or appear to violate any law of the state, the Law, the Regulations or rules promulgated under them and notify the Authority immediately, upon knowledge of such activities.
(3) Every licensee must retain all videotape recordings for at least fourteen (14) days after the recordings produced, unless a longer time period is required under these Regulations, or by order of the Authority.
(4) All videotape recordings must be made in rela time or extended play time and not in a time lapse recording mode.
50. Compliance with Surveillance Systems Requirements.
50. A licensee shall comply with the requirements set forth in Regulations 43, 44, 45, 46, 47 and 48 of this Regulations not later than fourteen (14) days prior to the start of its gaming operations.
51. Interpretation.
In these Regulations unless its otherwise expressly provided for or the context otherwise requires—
“the Authority” means the Regulatory Board appointed under Section 3 of the Law;
“Casino” means any building or part of a building in respect of which a licence has been issued, and to which members of the public authorized by the licensee have access for the purpose, among other things, of playing at prescribed games of chance;
“cash” means coin and currency that circulates, and is customarily used and accepted as money, in the State;
“cheating” means to unlawfully alter the elements of chance, method of selection or criteria which determine—
(a) the result of a game; or
(b) the amount or frequency of payment in a game.
“chip” means a non metal or partly metal representative of value, redeemable for cash, and issued and sold by a licence for use at the licensee is licensed premises;
“drop” means the total amount of money, chips, tokens and credit markers contained in the drop box;
“equipment” means any equipment, device, component or machine used remotely or directly in connection with gambling;
“fill” means the issue of additional chips to the table;
“Final action” in relation to any application, means the date when the Authority grants or refuses an application;
“games” means games of chance authorized under the licence to be played in the Casino;
“the Law” means the Casino and Gaming Law, 2007;
“licence” means a licence issued to any applicant in accordance with the provisions of the Law and these Regulations;
“licensee” means an applicant to whom a licence has been issued.
LAWS OF LAGOS STATE
LAWS OF THE FEDERAL REPUBLIC OF NIGERIA
