Makers and Partners urges government to review gaming tax

Makers and Partners (MAP), an audit firm, has urged the government to reconsider its current tax regime that requires casino operators to pay 20 percent of their Gross Gaming Revenue (GGR) as corporate tax.

Nii Addo Mensah, Managing Partner at MAP, noted that operators are required to pay a licensing fee to the Gaming Commission, which is approximately nine percent of their income.

“Land-based casinos also face additional expenses, such as rent, which accounts for around 25 percent of their income, and staff costs, which make up about 40 percent. With these high operational costs, paying a GGR tax of 20 percent as corporate tax becomes difficult,” he stated.

Nii Mensah made the appeal in an interview with the Ghana News Agency (GNA) during the inaugural Ghana Gaming and Lottery Awards.

The event, organised by Syndicated Entertainment Solution Limited in collaboration with the Gaming Commission of Ghana and the National Lotteries Authority (NLA), aimed to promote responsible gaming practices, foster innovation, and recognize outstanding contributions in the industry.

Nii Mensah further suggested that these major cost drivers should be recognized as allowable tax deductions.

“Casino operators must be allowed to deduct their license fees, rent, and staff costs before they apply the GGR tax,” he said.

This, Nii Mensah said, would help reduce the burden on the already struggling industry.

In its quest to acquire the needed revenues, in April 2023, the government passed the Income Tax Amendment Act 2023 (Act 1094).

Among other provisions, the Act introduced a gross gaming revenue (GGR) tax of 20 percent.

It also introduced a 10 percent tax on winnings from the gaming industry.

Nii Mensah, who doubles as a tax consultant and the Executive Director of the Gaming Operators Association of Ghana, stated that the gaming industry played a critical role in shaping Ghana’s economic landscape, particularly in job creation.

Touching on the awards, he said the award scheme would highlight the contributions of all stakeholders and promote best practices within the gaming and lottery industry.

He therefore lauded operators in the lottery and gaming space for cooperating with their regulators and commended the NLA and the Gaming Commission for taking measures to streamline and sanitize the industry, “this will help uphold integrity.”

Mr. Gary Nimako, Board Chair of the NLA, also noted that the awards scheme would encourage all stakeholders to comply with regulations and best practices in the lottery and gaming space.

He reiterated that the lotto and gaming industry, though regulated by law, has witnessed some unscrupulous entities infiltrating the system.

The Board Chair said the NLA was poised to create a safe environment by enforcing compliance with regulations and ensuring that consumers were protected from scams.

Mr. Nimako said to ensure transparency and uphold integrity, the Authority had published a list of licensed operators on its website and in the dailies, hence, cautioned the public to engage only with these operators.