Despite the projected GH¢1.8 billion annual worth of Ghana’s lottery sector, the National Lottery Authority (NLA) earns around GH¢800 million, leaving the remaining GH¢1 billion in the hands of illegal lotto operators across the nation.
The NLA’s Director-General, Sammi Awuku, stated this in Accra last weekend, saying the body had created multiple ways to either crack down on illegal operators or distort their activities so that the state could reap the full advantages of lottery earnings.
These include a thorough cooperation effort with state agencies such as the Ghana Revenue Authority (GRA), as well as a new strategy that involves the whole national security apparatus through the development of a special task force to find and capture unlawful operators.
He said that the NLA has increased the commission given to legitimate lottery operators from 20% to 25% as part of efforts to encourage others to participate.
Mr Awuku also stated that the authority had devised a means to conduct its draws at unannounced times of the day in order to outwit the illegal operators, while also working more closely with staff and the general public to intensify their support for an end to the illegal activities that cost the state over a billion Ghana cedis per year.
The NLA Director-General addressed leading journalists at a special Editors Forum to inform them on the NLA’s activities, the impact of illegal operators on the lottery sector, and the steps taken to combat such culprits in the country.
Optimism
Mr Awuku stated that, while the NLA had previously failed to crack down on illegal operators in the country, a carefully crafted strategy had been adopted this time, based on a comprehensive study of their operations and collaborative efforts with other relevant agencies, to ensure that the strategy was successful.
“We are ready to regularise their activities with us so they can stop their illegal activities” .
Some have joined, but many more are hesitant, but I can promise you that this time they will not have their way because we have the full backing of the President and government to carry out this thorough exercise in the benefit of our rising economy and the people of Ghana,” he stated.
Lottery and politics
According to Mr Awuku, only approximately 20 of the estimated 700 illegal lottery organizations, largely in rural regions, are registered with the NLA, which he considers unacceptable.
He used the opportunity to highlight the significant role of illegal lotto operators as financiers of Ghana’s two major political parties, emphasizing the importance of preventing politics from interfering with the NLA’s revenue generation efforts while ensuring that rules are applied uniformly to all such operators.
He described how political divisions within the NLA had previously caused staff frustrations, affecting productivity, and expressed hope that with such a canker nearly cured, NLA revenues would rise further to help accelerate national development for the benefit of all citizens.
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Mr Awuku stated that the NLA now generates revenue from Nigeria and Cote d’Ivoire, where the draw results are utilized for local lotteries, proving the authority’s regional impact.
Financial Performance
The NLA has encountered financial issues in recent years, registering a loss of GH¢788,818 in 2020 and a more significant loss of GH¢17.1 million in 2021.
NLA successfully paid off its debt and had a profit of GH¢2.5 million in 2022, up from GH¢2.6 million the previous year.
Miscellaneous revenue increased from GH¢35.54 million in 2020 to GH¢133.45 million in 2023, driving the recovery.
The NLA’s Board Chairman, Gary Nimako Marfo, stated that the additional 25% charge solely applied to NLA-licensed lottery firms.
He also stated that the NLA would expand its attack on illicit lottery operators, especially as the general election approached.
He cautioned unlawful operators who sought protection from high-ranking party and government officials that the present board and management would not tolerate such interventions that only benefitted a few at the detriment of the entire country.
