The National Lottery Authority (NLA) has announced a 25% commission for lotto writers in Ghana, up from 20%.
Chairman of the NLA Board, Mr Gary Nimako who announced their approval of the new rate at NLA’s encounter with Editors at Abokobi in the Greater Accra Region, said the change, will take effect at the end of August 2024.
Mr. Nimako clarified that the new 25% commission applies only to lotto companies licensed by the NLA.
The Lotto Act, Act 722, grants the NLA Board the authority to determine the commission rates for lotto writers.
Writers used to receive a 25% commission since the introduction of the lottery in Ghana in 1962.
However, around 2011, the lotto writers petitioned NLA to increase the commission to 30%.
This prompted the NLA to conduct a study on lottery commissions paid writers around the world during which it was discovered that commissions paid around the world were far lower than the 25% NLA was paying.
Consequently, NLA reduced the commission to 20%.
The reduction was to ensure that the lotto companies are able to pay wins and operational expenses in addition to the commission.
However, the dissatisfied lotto writers sued NLA but lost the case.
Notwithstanding this, some private lotto companies had been illegally paying up to 30%.
Therefore, in 2022, the NLA directed the enforcement of the 20% across board, a move that was met with strong opposition from the Ghana Lotto Operators Association (GLOA), the Concerned Lotto Agents Association of Ghana (CLAAG), and the Private Lotto Writers Association (PLAW).
These groups argued that the 20% commission was insufficient to sustain their businesses and households, especially given the current economic challenges.
They therefore called for an increase to 40%.
Illegal operators
Mr. Nimako gave strong warning that the NLA would intensify its crackdown on illegal lotto operators, particularly as the 2024 election year approaches.
He cautioned illegal operators who seek protection from high-ranking party and government officials that the current Board and management would not yield to such interventions.
Legacy debt paid
The NLA has faced financial challenges in recent years, recording a loss of GH¢788,818 in 2020 and a more significant loss of GH¢17.1 million (GH¢17,148,582) in 2021.
However, NLA under current Director General, Samuel Awuku paid the debt in full and managed a turnaround in 2022, posting a profit of GH¢2.5 million (GH¢2,563,980) and GH¢2.6 million (GH¢2,695,631.16).
This recovery followed a substantial increase in miscellaneous income, which rose from GH¢35.54 million in 2020 to GH¢133.45 million in 2023.
Director General of the NLA, Samuel Awuku, announced that a task force, including security personnel and Ghana Revenue Authority (GRA) officials, would be conducting operations against illegal lotto operators.
Despite the estimated GH¢1.8 billion yearly value of Ghana’s lotto industry, the NLA captures only about GH¢800 million, while illegal operators rake in over GH¢1 billion annually.
Mr. Awuku noted that of the estimated 700 illegal lotto companies, mostly in rural areas, only about 20 are registered with the NLA.
Mr. Awuku also highlighted the significant role of illegal lotto operators as financiers of the two major political parties in Ghana.
He stressed the importance of keeping politics from interfering with the NLA’s revenue generation efforts and ensuring that rules are applied uniformly to all operators.
Mr. Awuku recounted how political divisions within the NLA had previously led to staff frustrations, affecting productivity.
Additionally, the NLA generates income from Nigeria and Ivory Coast, where the NLA’s draw results are used for their local lotteries, further demonstrating the authority’s regional influence.