Accra: A press statement by the Ghana Lotto Operators Association (GLOA) is urging stakeholders, media, and the public not to compare the GHS 44.9 million paid by some 29 licensed Private Lotto Operators to the NLA to the over GHS 173 million paid by KGL to the same institution. GLOA also confirmed that KGL is the largest contributor to NLA in terms of revenue generation for the Republic.
According to Ghana News Agency, Section 2(1) of the National Lotto Act, 2006(Act 722), states that 'National Lotto shall be conducted for the purpose of raising revenue for the nation and for other purposes stated in this Act.' Therefore, per Section 2(1) of Act 722, KGL has proven its worth by helping the National Lottery Authority (NLA) to fulfil its primary objective of raising revenue for the nation. The statement emphasized that while generating revenue is not principally aimed at employment creation or grassroots economic activity, it inherently leads to such outcomes.
The statement pointed out that KGL operates as a collaborator under the same National Lotto Act, specifically Section 2(4) of the National Lotto Act, 2006(Act 722). It acknowledged that Private Lotto Operators are not duly recognized under Act 722 as they are neither Lotto Marketing Companies nor Collaborators. Thus, they are supposed to be licensed and regulated by the National Lottery Authority (NLA) under Section 22(1) of the Veterans Administration, Ghana Act, 2012(Act 844).
Despite GLOA and its members controlling 70-80% of the market share in the lottery industry, the statement indicated that comparing GLOA's 44.9 million cedis to KGL's 173 million cedis is not inherently flawed. It suggested that GLOA's expected contributions should surpass the GHS 44.9 million payments to the Republic through NLA.
The statement further elaborated that achieving results in mobile-based transactions requires huge investments in modern IT infrastructure, software systems integrations, and substantial financial commitments. It argued that access to a dedicated USSD platform does not necessarily expand transaction volumes or reduce operational complexity, citing the poor performance of past NLA mobile initiatives as evidence.
KGL's contributions extend beyond statutory payments to NLA. The company also pays GHS 3 million annually to the NLA Stabilization Fund and GHS 2 million to support NLA's Good Causes Foundation. These payments surpass individual license fees of Private Lotto Operators. Additionally, KGL's operations have created jobs for millions of Ghanaians, benefiting various sectors including telecom companies, banks, and media houses.
The statement highlighted the underdeveloped nature of the lottery market in Ghana, suggesting that the space is large enough to accommodate KGL, Private Lotto Operators, and other Collaborators. It called for industrial harmony, emphasizing the need for peaceful coexistence among stakeholders recognized by the National Lottery Authority (NLA) to raise revenue and create jobs.