GLOA defends KGL's contribution to NLA; says figures cannot be compared

A press statement issued by the Ghana Lotto Operators Association (GLOA) has urged stakeholders, the media, and the general public not to compare the GH¢44.9 million paid to the National Lottery Authority (NLA) by some 29 licensed Private Lotto Operators with the more than GH¢173 million paid by KGL to the same institution. GLOA also confirmed that KGL remains the largest contributor to the NLA in terms of revenue generation for the Republic.

According to Section 2(1) of the National Lotto Act, 2006 (Act 722), "National Lotto shall be conducted for the purpose of raising revenue for the nation and for other purposes stated in this Act."

Therefore, GLOA argued that KGL has demonstrated its value by helping the National Lottery Authority fulfil its primary objective of raising revenue for the nation.

The association noted that the principal purpose of establishing the NLA is revenue generation, rather than employment creation or grassroots economic activity. However, it acknowledged that revenue generation naturally leads to job creation and economic activity at the grassroots level, whether through USSD platforms, point-of-sale terminals, or paper-based coupons.

Different Business Models
KGL operates as a collaborator under the National Lotto Act, specifically Section 2(4) of Act 722.

GLOA stated that Private Lotto Operators are not formally recognised under Act 722, as they are neither Lotto Marketing Companies nor Collaborators. According to the association, members of GLOA and other Private Lotto Operators are licensed and regulated by the NLA under Section 22(1) of the Veterans Administration, Ghana Act, 2012 (Act 844).

The statement argued that comparing GLOA's GH¢44.9 million contribution to KGL's GH¢173 million contribution is not inherently flawed, given that Private Lotto Operators are estimated to control between 70 and 80 per cent of the lottery market. As such, GLOA contended that the sector should be generating significantly higher returns for the Republic through the NLA.

Exclusive Market Access Does Not Automatically Create an Advantage

The association stressed that participation in lottery activities by Ghanaian citizens is voluntary and cannot be compared to mandatory obligations such as tax payments to the Ghana Revenue Authority.

It noted that success in mobile-based lottery transactions requires substantial investments in modern IT infrastructure, software integration, ISO certifications, and marketing.

According to GLOA, achieving a competitive advantage in the digital lottery space requires significant capital investment, estimated at between US$500 million and US$1 billion, to build and maintain infrastructure comparable to that currently operated by KGL in partnership with mobile network operators.

The association further rejected claims that access to a dedicated USSD platform automatically translates into increased transaction volumes and reduced operational complexity.

It pointed to the NLA's previous digital lottery initiatives, including Mobi Game 2 Sure in 2008 and Mobile 5/90 between 2015 and 2017, as examples of projects that failed to achieve sustainable success.

According to the statement, revenues generated through Mobile 5/90 amounted to GH¢517,967.50 in 2015, GH¢1,259,185.10 in 2016, and GH¢367,812.30 in 2017. Due to poor performance, the NLA subsequently discontinued the initiative.

Similarly, revenue generated through the *890# VAG Lottery Intake and *890# NLA 5/90 platforms in 2020 amounted to GH¢31,786.85 and GH¢938,005.14 respectively. The poor performance of the service ultimately led to the termination of the partnership between the NLA and Tekstart Afrika Limited.

GLOA argued that these historical challenges demonstrate that KGL's success did not come easily, but was achieved through substantial investment, commitment, and operational excellence.

KGL Bears Significant Infrastructure Costs

The association questioned whether any member of GLOA—or even the combined resources of the association—could match the level of financial investment KGL has made to sustain its operations without imposing financial risk on the NLA.

According to the statement, system upgrades, integration with telecommunications networks, cybersecurity protection, and ongoing maintenance require investments running into millions of US dollars.

It added that the payment of winning tickets, extensive marketing campaigns, and corporate social responsibility initiatives also involve significant expenditure.

KGL Remains the Largest Contributor to NLA Revenue

Beyond its statutory payments to the NLA, KGL contributes GH¢3 million annually to the NLA Stabilisation Fund, which was established to support Lotto Marketing Companies operating through kiosks.

The company also contributes GH¢2 million annually to support the NLA's Good Causes Foundation.

GLOA noted that each of these annual contributions exceeds the individual licence fee of GH¢1.5 million paid by a Private Lotto Operator.

KGL Supports More Than One Million Livelihoods

The statement further highlighted KGL's contribution to employment and economic activity across the country.

According to GLOA, KGL Group supports millions of livelihoods directly and indirectly through its operations and partnerships.

Beneficiaries include mobile network operators such as MTN, Telecel, and AirtelTigo, as well as banks, advertising agencies, media organisations, and numerous other businesses.

Wider Economic Impact

The association stated that KGL's marketing and sustainability investments contribute significantly to Ghana's broader economic ecosystem by helping businesses expand, retain workers, and create new employment opportunities.

Through the KGL Foundation, it added, the livelihoods of many households—particularly among the youth—have been improved through investments in education, healthcare, and sports development.

According to GLOA, KGL's overall contribution to the economy exceeds GH¢1 billion annually through taxes, direct investments, and social intervention programmes.

Call for Holistic Evaluation

GLOA maintained that Ghana's lottery market remains underdeveloped and large enough to accommodate KGL, Private Lotto Operators, and other collaborators.

The association stressed that industrial harmony is essential if all licensed entities are to realise their full potential.

It further stated that no one is opposed to the activities of Private Lotto Operators and agents. In many countries, retail lottery sales account for between 60 and 70 per cent of the market, while digital platforms contribute between 30 and 40 per cent.

According to the statement, Private Lotto Operators can enhance their competitiveness by deploying modern point-of-sale terminals, introducing paper coupons with stronger security features, and adopting effective marketing strategies.

"The Republic needs KGL to raise revenue in accordance with Section 2(1) of Act 722," the statement said.

"The Republic also needs Private Lotto Operators, Lotto Marketing Companies, and Collaborators to create jobs for people operating in kiosks across the country."

The statement concluded that all stakeholders in the lottery industry have an important role to play and should focus on peaceful coexistence, revenue generation, and job creation rather than engaging in conflict and undermining one another.