The National Lottery Authority (NLA) of Ghana has announced a renewed effort to tackle illegal lottery operations, setting a firm deadline of January 23, 2023, for private lotto operators to regularize their licenses for the 2023 licensing year. This initiative, announced on January 16, 2023, underscores the NLA’s commitment to regulating the lottery industry, which is plagued by unlicensed operators siphoning off significant revenue.
Deadline for Compliance and Threat of Sanctions
In a statement issued in Accra, the NLA cautioned private lotto operators who have not yet complied with licensing requirements to do so by January 23, 2023, or face severe sanctions, including license revocation. “NLA will revoke the licenses of operators who have failed, refused, or neglected to regularize their registration and pay the required licensing fees,” the authority warned. The NLA is collaborating with security agencies to conduct nationwide operations to clamp down on unlicensed and illegal operators, with those arrested facing the full rigors of the law.
The authority has already identified and licensed several entities for the 2023 licensing year under the National Lotto Act, 2006 (Act 722). These include seven third-party collaborators—KGL Technology Limited, Afri Lotto Systems Limited, Blue Star Hi-Tech Company Limited, Fortune Synergy Limited, Wulucky Ghana Limited, Zeta Technologies Limited, and Globalfun Ghana Limited—and eleven private lotto operators, such as Alpha Lotto Limited, Rand Lottery Limited, and Glovita Lottery Limited. The public is advised to engage only with these licensed entities to avoid losses or damages from dealings with unauthorized operators.
Addressing Revenue Losses in the Lottery Sector
The NLA’s crackdown is driven by the significant financial impact of illegal lottery operations. The authority estimates that Ghana’s lottery industry generates approximately GH¢1.8 billion annually, yet illegal operators, numbering around 700 and mostly operating in rural areas, pocket over GH¢1 billion, leaving the NLA with only GH¢800 million. This revenue loss hampers the state’s ability to fund development projects, prompting the NLA to intensify its efforts.
The NLA has also clarified that the commission rate for agents remains at 20%, pending any future changes approved by its Governing Board. This measure aims to maintain fairness and transparency in the industry while encouraging compliance among operators.
Broader Economic Context and Collaborative Efforts
The crackdown comes amid Ghana’s broader economic challenges, including a 52.2% inflation rate and a cedi depreciation to GH¢13 per US dollar in January 2023. The NLA’s actions align with government efforts to boost revenue collection, critical for securing a $3 billion IMF bailout. To strengthen its campaign, the NLA is working with regulatory bodies and security agencies to ensure enforcement. Unlicensed operators are urged to contact the NLA to initiate licensing processes, with customer service helplines (0266-087-966 and 0266-087-946) provided for inquiries.
A Call for a Regulated Lottery Industry
The NLA’s renewed push to regulate the lottery sector reflects its commitment to fostering a transparent and competitive industry. By cracking down on illegal operators, the authority aims to protect consumers, ensure fair practices, and maximize revenue for national development. As the January 23 deadline approaches, the success of this initiative will depend on the cooperation of operators and the effectiveness of enforcement measures.
