The Ghana Lotto Operators Association (GLOA) has pushed back against recent comparisons between the contributions of KGL Technology Limited and licensed Private Lotto Operators (PLOs) to the National Lottery Authority (NLA), arguing that such assessments fail to capture the broader economic impact of private operators across the country.
According to the Association, focusing solely on the amount of money paid directly to the NLA creates a misleading narrative that overlooks employment creation, infrastructure investment, tax payments, and the role private operators play in sustaining economic activity nationwide.
GLOA’s response follows discussions highlighting KGL’s reported contribution of GH¢173 million to the NLA compared with the combined GH¢44.9 million paid by the country’s 29 licensed Private Lotto Operators in licence fees. While acknowledging the figures, the Association insists that the comparison does not reflect the different conditions under which both entities operate.
The Association explained that licensed Private Lotto Operators function under the National Lotto Act and operate as independent businesses licensed by the NLA.
KGL, on the other hand, works with the NLA under a separate collaborative arrangement.
According to GLOA, these differences are important because they influence how revenue is generated and the costs associated with operations.
As a result, the Association believes direct comparisons between the two entities do not provide a complete picture of their respective contributions to the lottery industry.
A major issue raised by GLOA is what it describes as unequal access to the market. The Association pointed to KGL’s access to a dedicated USSD platform, which allows lottery transactions to be conducted through mobile phones.
GLOA argues that such access provides a significant advantage by making it easier to reach customers and process transactions. In an era where digital platforms continue to drive business growth, the Association believes that market access plays a crucial role in determining revenue performance.
The Association therefore maintains that any attempt to compare contributions should take into account the opportunities available to each stakeholder and the environment within which they operate.
Beyond market access, GLOA highlighted the extensive operational costs borne by licensed Private Lotto Operators.
According to the Association, operators maintain large physical networks across the country, requiring substantial investments in infrastructure and logistics.
These include Point of Sale (POS) terminals, lotto kiosks, transportation systems, maintenance services, administrative structures, and other support systems necessary for day-to-day operations.
Operators are also responsible for recruiting, training, and managing thousands of workers involved in lottery sales and distribution.
GLOA estimates that these infrastructure and operational expenses account for about 60 percent of operating costs before taxes, winnings, and regulatory obligations are considered.
The Association says these investments ensure that lottery services remain accessible in communities across Ghana, including areas where digital services may be limited.
While public attention has focused largely on licence fees paid to the NLA, GLOA argues that the contributions of private operators go far beyond these payments.
The Association noted that each licensed operator pays an annual licence fee of GH¢1.5 million to the Authority.
In addition, operators contribute through taxes, payments to the Good Causes Foundation, and compliance with a range of regulatory requirements.
According to GLOA, these contributions collectively support the operations of the NLA and provide additional benefits to the state.
Employment creation remains one of the strongest arguments advanced by the Association. GLOA estimates that more than one million Ghanaians depend directly or indirectly on the activities of licensed Private Lotto Operators for their livelihoods.
This network includes lotto writers, agents, supervisors, sub-agents, transport operators, maintenance personnel, and numerous support workers whose incomes are linked to the lottery industry.
According to the Association, lotto writers receive commission’s equivalent to 25 percent of gross revenue, while supervising agents earn an additional five percent. These earnings, GLOA says, provide sustainable income for thousands of families and inject money into local economies across the country.
The Association also stressed that the private lottery sector supports a wider network of businesses.
Demand for kiosks, equipment, transportation, maintenance services and other operational needs create opportunities for small and medium-sized enterprises in both urban and rural areas.
As a result, GLOA believes the industry’s impact extends beyond lottery sales and contributes significantly to economic activity, entrepreneurship, and tax generation.
In light of these factors, the Association is calling for a broader framework for evaluating contributions within Ghana’s lottery sector.
Rather than relying solely on direct payments to the NLA, GLOA says policymakers and regulators should also consider employment creation, infrastructure investment, taxes, operational expenditures, market access, and overall economic impact.
According to the Association, licensed Private Lotto Operators have consistently supported the National Lottery Authority while investing heavily in jobs and business growth across the country.
GLOA maintains that recognising these broader contributions will provide a more balanced understanding of the industry’s role in national development and help guide future policy decisions for the benefit of all stakeholders.
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