NLA licenses 15 private lotto operators

In a landmark effort to enhance the regulation and transparency of Ghana’s lottery industry, the National Lottery Authority (NLA) has officially issued licenses to 15 Private Lotto Operators (PLOs). This public licensing event, attended by the media, underscores the NLA’s dedication to fostering a fair and competitive environment in the lottery sector.

The issuance of these licenses marks a significant step forward in the NLA’s ongoing mission to regulate the industry effectively, protect legitimate businesses, and ensure fair play. With this latest round, the total number of licensed PLOs in Ghana has increased to 23, following the earlier licensing of eight companies this year. Notable among the newly licensed operators are KGL Technologies, Blue Star Hi-Tech Company Limited, and Fortune Synergy Limited.

The licenses, granted under the NLA Act 2006 (Act 722), Lottery Regulations 2008 (LI 1948), and Veterans Administration Ghana (VAG) 2012 (Act 844), set a new standard for lottery operations in the country. The licensing terms vary, with three companies, including Luma Technologies, Rand Lottery, and Alpha Lotto, receiving 10-year licenses valid from January 2024 to December 2035. The other 12 companies received licenses with terms ranging from two to three and a half years.

The licensed companies are authorized to operate the NLA’s original 5/90 Game, which is currently paper-based but is set to transition to Point of Sale (POS) terminals within the next two years. This modernization is part of the licensing conditions and aims to streamline operations. Additionally, the new licenses empower these companies to report illegal lottery operators, bolstering the NLA’s efforts to combat unauthorized activities.

NLA Board Chairman, Mr. Gary Nimako, reiterated the authority’s commitment to protecting the investments of licensed operators and taking decisive action against illegal operations. He issued a strong warning to unlicensed companies, urging them to cease operations immediately and directed NLA Director General, Mr. Samuel Awuku, to enforce actions against illegal operators.

Despite the estimated GH₵1.8 billion annual value of Ghana’s lottery industry, the NLA currently captures only about GH₵800 million, with illegal operators siphoning off over GH₵1 billion annually. Of the approximately 700 illegal lotto companies, mainly operating in rural areas, only about 20 are registered with the NLA.

During the ceremony, Noah Afornofe, Managing Director of Rand Lottery Limited, spoke on behalf of the licensed PLOs, expressing satisfaction at finally achieving full licensing status. Mr. Awuku reassured the licensed companies of the NLA’s commitment to safeguarding their business interests and addressed rumors regarding the ownership of the NLA’s charity arm, the Good Causes Foundation.

Additionally, the NLA instructed the PLOs to adhere to the newly adjusted commission rate for lotto writers, which has been raised from 20% to 25%. This adjustment, in line with the Lotto Act (Act 722), aims to balance the financial needs of the writers with the sustainability of the lottery companies. Although some private lotto companies have been illegally paying up to 30% commission, the NLA is working to standardize the rate at 25%, warning that non-compliance could result in license revocation.

The issuance of these licenses signals a new chapter in the regulation of Ghana’s lottery industry, with the NLA taking decisive steps to ensure that the sector operates transparently and fairly, benefiting all stakeholders.