Prior to the enactment of the Lagos State Lotteries Law in 2004, the lottery industry was unregulated and formed part of the informal sector.

LSLB became functional in 2005 with an exclusive licencee. However, in response to global development in the gaming industry and the peculiarity of the Nigerian environment, the Law was amended in 2008. The amendment empowered LSLB to issue multiple lottery licences in addition to the State owned lottery licence thereby providing a competitive platform for lottery operators in the State.

The amendment also paved way for the regulation of different aspects of gaming activities in the State.