Court halts Vodafone’s “Mooore Money” promotion

Accra, Aug. 17, GNA – An Accra Fast Track High Court on Wednesday restrained Vodafone Ghana Limited, their agents, assigns and servants from promoting, sponsoring and advertising the ongoing promotion dubbed “Mooore Money.”

It, however, ordered the National Lotto Authority (NLA) to give an undertaking within 21 days indicating that if at the end of the trial it turned out that the promotion was a game of chance the authority would pay adequate compensation to Vodafone.

The court presided over by Justice Dennis Adjei in his ruling on an interlocutory injunction did not award any cost.

This was after Mr Kojo Graham, counsel for NLA, had moved a motion before the court after attempts to have the matter settled amicably with Vodafone had broken down.

The National Lottery Authority (NLA) took Vodafone Ghana Limited, one of the nation’s communication giants, to court over its “Mooore Money” promotion.

Joined in the suit are the Gaming Commission and two of its officials, Mr Peter Yeboah and Mr Kofi Ahinkorah.

In the motion filed by NLA, it is seeking an order restraining Vodafone and their agents, servants and assigns from promoting, sponsoring and advertising the ongoing purported promotion dubbed “Mooore Money”.

The NLA is further seeking an order restraining the defendants from associating with, engaging or supervising any draw organized for the Vodafone Moore Money promotion.

The NLA is seeking the court’s order to restrain Mr Yeboah and Ahinkorah from issuing any purported permits or licenses in the name of the Commission for lottery schemes disguised as consumer promotions, pending the appointment of the Gaming Commissioner and the constitution of the Gaming Commission as stated in Section 4 (2) of the Gaming Act, Act 721.

Additionally, the NLA is seeking an order preventing Mr Yeboah and Mr Ahinkorah from charging and collecting in the name of the Commission five per cent gaming tax or promotional fee from Vodafone Ghana or any other applicants.

The Authority is seeking general and special damages, cost and any other reliefs that the court may deem fit.

In its statement of claim, the NLA said it was a statutory body established by the National Lotto Act, 2006 (Act 722) which gave it authority to regulate, supervise and manage the national lotto as well as the enforcement of laws relating to lottery within the country.

It said on August 1, this year, Vodafone Ghana launched a lottery disguised as a promotion by name Vodafone Moooore Money scheduled to run from August 1 for 10 cycles, each cycle ending with the one millionth SMS.

The NLA contended that the promotion was indeed a lottery, which had been massively marketed nationwide and was open “to subscription only by subscribers to Vodafone network”.

The Authority stated that in the promotion “participants win by competing to hit particular milestone numbers such 100th, 1,000th and 10,000th up to one millionth SMS” averting that was wholly by chance.

According to the NLA, the Vodafone promotion in factual form and legal substance constituted “a lottery since it satisfies all the three key elements of lottery under the laws of Ghana”.

The elements are that there was a prize or reward to be won, that the determination of a prize winner was by chance and a consideration or payment for the opportunity to enter to participate in the game.

The NLA observed that the marketing and sponsorship of Vodafone‘s promotion was in breach of Section 4 of the National Lotto Act which prohibited operation of lottery by all persons other than the NLA.

“Operators of games of chance are subject to assessment and payment of Value Added Tax (VAT) according to the VAT Act, but the defendant has failed to pay VAT on its Past ‘promotions’ which were in fact lottery conduct in breach of Act 722,” it said.

The NLA is therefore seeking an order compelling Vodafone Ghana Limited to account for all proceeds and payments received from subscribers from the commencement of the promotions from August 1.

Mr Festus Kayi, counsel for Vodafone, argued that the promotion was not a lottery but a game of chance.

According to him, Vodafone sought permission from the Gaming Commission before commencing the promotion.

He recalled the frustration he had gone through to have the matter settled amicably stressing that if the court went ahead to grant the application Vodafone would suffer great loss.