The Ghana Lotto Operators Association (GLOA) has confirmed that KGL Technology Ltd. remains the largest revenue contributor to the National Lottery Authority (NLA), while urging stakeholders, the media, and the public to avoid direct comparisons between the GH₵44.9 million paid by 29 licensed private lotto operators and the over GH₵173 million paid by KGL to the Authority.
In a press statement, GLOA emphasized that the two groups operate under different regulatory frameworks and business models, making side-by-side revenue comparisons misleading and unhelpful to the growth of Ghana’s lottery industry.
Revenue Mandate Under Act 722
Citing Section 2(1) of the National Lotto Act, 2006 (Act 722), GLOA noted that the primary purpose of establishing the NLA is “raising revenue for the nation and for other purposes stated in this Act.”
“KGL has proven its worth by helping the NLA fulfill its number one objective for which the Authority was established,” the statement said. “While revenue generation automatically leads to job creation and grassroots economic activity through USSD platforms, point-of-sale terminals, and paper-based coupons, the core mandate remains revenue mobilization for national development.”
GLOA reaffirmed that, based on contributions to the NLA, KGL currently leads in revenue generation for the Republic.
Different Regulatory and Operational Models
According to GLOA, KGL operates as a collaborator under Section 2(4) of Act 722. By contrast, private lotto operators under GLOA are not recognized under Act 722 as either Lotto Marketing Companies or Collaborators. Instead, they are licensed and regulated by the NLA under Section 22(1) of the Veterans Administration, Ghana Act, 2012 (Act 844).
The Association argued that comparing GH₵44.9 million from GLOA members to GH₵173 million from KGL ignores these structural differences. It also pointed out that despite GLOA members controlling an estimated 70-80% of market share in the lottery industry, their contribution to the NLA in the period under review stood at GH₵44.9 million.
Infrastructure Investment vs. Market Access
GLOA dismissed claims that access to a dedicated USSD platform alone guarantees high transaction volumes and operational efficiency. It referenced NLA’s previous digital projects MOBI GAME 2 SURE in 2008 and MOBILE 5/90 between 2015 and 2017 as evidence that success requires more than market access.
“USSD/MOBILE 890# VAG Lottery Intake and USSD/MOBILE 890# NLA 5/90 VAG lotto intake generated only GH₵31,786.85 and GH₵938,005.14 respectively in 2020,” GLOA stated. “The poor performance of the 890# short code forced NLA and Tekstart Afrika Limited to cease operations.”
The Association said KGL’s success was built on capital investments estimated between $500 million and $1 billion in IT infrastructure, software integrations, ISO certifications, and marketing partnerships with mobile network operators.
It added that KGL bears heavy costs for system upgrades, cybersecurity firewalls, ticket payments to winners, and marketing, all at no financial risk to the NLA.
Additional Contributions by KGL
Beyond statutory payments, GLOA highlighted that KGL pays GH₵3 million annually into the NLA Stabilization Fund, which supports Lotto Marketing Companies in kiosks, and GH₵2 million annually to the NLA Good Causes Foundation. Each amount, GLOA noted, exceeds the GH₵1.5 million individual license fee paid by a private lotto operator.
KGL also supports more than one million livelihoods directly and indirectly, including employment through MTN, Telecel, AirtelTigo, banks, advertising firms, media houses, and other businesses in its ecosystem.
Through the KGL Foundation, the company has invested in education, healthcare, sports development, and youth empowerment, with total annual contributions to Ghana’s economy estimated at over GH₵1 billion through taxes and social investments.
Call for Industrial Harmony
GLOA said the lottery market remains underdeveloped and large enough to accommodate KGL, private operators, Lotto Marketing Companies, and other collaborators. It stressed that industrial harmony is essential for all NLA-licensed entities to realize their full potential.
“Absolutely no one is against private lotto operators and agents,” the statement clarified. “In several countries, retail accounts for 60-70% of the market while digital accounts for 30-40%. What private operators need to do is deploy modern point-of-sale terminals or paper coupons with enhanced security features, coupled with the right marketing strategies.”
GLOA concluded that Ghana needs KGL to raise revenue under Section 2(1) of Act 722, and also needs private operators to create jobs through kiosks across the country.
“The Republic needs the services of all stakeholders in the lottery industry. Instead of fighting and undermining each other, stakeholders duly recognized by the NLA should learn to peacefully co-exist, raising revenue and creating jobs,” the Association stated.
Source: Razak Kojo Opoku
