The Ghana Lotto Operators Association (GLOA) has urged stakeholders, the media, and the general public to avoid making direct comparisons between the GH₵44.9 million paid to the National Lottery Authority (NLA) by 29 licensed Private Lotto Operators and the more than GH₵173 million contributed by KGL Group.
In a press statement, GLOA acknowledged that KGL remains the single largest contributor to the NLA in terms of revenue generation for the state.
According to the association, Section 2(1) of the National Lotto Act, 2006 (Act 722), stipulates that the National Lotto exists primarily to raise revenue for the nation. GLOA argued that KGL’s significant financial contributions have enabled the NLA to fulfill this mandate.
“The principal objective of the NLA is revenue generation for the Republic,” the statement noted, adding that employment creation and grassroots economic activities, while important, are secondary outcomes of a successful lottery industry.
Different Business Models
The statement explained that KGL operates as a collaborator under Section 2(4) of Act 722, while Private Lotto Operators function under a different legal framework.
It further argued that private operators are licensed and regulated under Section 22(1) of the Veterans Administration, Ghana Act, 2012 (Act 844), emphasizing that the two groups operate under distinct business models.
Despite this distinction, the statement maintained that comparisons remain valid because Private Lotto Operators are estimated to control between 70 and 80 percent of the lottery market share.
“With such market dominance, it is reasonable to expect higher contributions to the Republic through the NLA,” the statement asserted.
Digital Success Requires Heavy Investment
The association rejected claims that access to a dedicated USSD platform automatically guarantees higher transaction volumes and profitability.
Citing historical examples, it pointed to the NLA’s previous digital lottery initiatives, including MOBI GAME 2 SURE and MOBILE 5/90, which reportedly generated relatively modest revenues before being discontinued.
According to figures cited in the statement, MOBILE 5/90 generated GHS517,967.50 in 2015, GH₵1.26 million in 2016, and GHS367,812.30 in 2017 before operations ceased.
Similarly, the *890# USSD lottery platform reportedly generated limited revenues in 2020, leading to its eventual discontinuation.
The statement argued that these experiences demonstrate that KGL’s success was achieved through substantial investments in technology, infrastructure, and marketing rather than through exclusive access to digital channels.
High Infrastructure Costs
GLOA highlighted the significant financial commitments required to operate modern lottery systems, including investments in information technology infrastructure, software integration, cybersecurity, marketing, and payment systems.
According to the association, such investments run into hundreds of millions of dollars and are undertaken without direct financial risk to the NLA.
The statement also noted that KGL bears costs related to system upgrades, fraud prevention, payment of winning tickets, corporate social responsibility (CSR), and operational sustainability.
Additional Contributions to NLA
Beyond its statutory payments, GLOA said KGL contributes GH₵3 million annually to the NLA Stabilization Fund, which supports Lotto Marketing Companies, and GHS2 million each year toward the NLA Good Causes Foundation.
The association noted that these annual contributions exceed the GH₵1.5 million licensing fee paid by individual Private Lotto Operators.
Economic Impact
GLOA further stated that KGL’s operations support livelihoods across multiple sectors of the economy, including telecommunications companies, banks, media organizations, advertising firms, and other service providers.
It claimed that KGL’s overall contribution to Ghana’s economy exceeds GH₵1 billion annually through taxes, investments, and support for education, healthcare, and sports development.
Call for Industry Harmony
The association emphasized that Ghana’s lottery industry remains underdeveloped and has sufficient room for Private Lotto Operators, Lotto Marketing Companies, Collaborators, and other stakeholders to thrive.
It called for peaceful coexistence within the sector, stressing that all stakeholders have important roles to play in both revenue generation and job creation.
“The Republic needs all players in the lottery industry,” the statement said. “Rather than undermining one another, stakeholders should work together to expand the industry and maximize its benefits to the nation.”
