In August 2023, the government introduced a 10% tax on betting and lottery winnings. The goal was to raise revenue and curb youth gambling.
The Ghana Revenue Authority (GRA) aimed to collect around GH¢1.2 billion by year-end. Yet, despite this target, collections have fallen short. Challenges with illegal operators and structural gaps have hindered full revenue capture.
However, Alex Dadey, Executive Chairman of KGL Group, isn’t too happy about it. In a recent interview on TV3 Business Focus, he argued that the tax risks undoing years of hard-won progress. Dadey and other industry experts spent years building Ghana’s betting sector into a modern, regulated industry. Now, he fears this tax could drive people back to unregulated, illegal betting, undermining the efforts to create a safe betting environment.
“We fought it,” Dadey shared, explaining their efforts to engage the GRA. “Taking the lotteries sector as an example, it was so hard to bring it to this level,” he added. Taxing it now, he argues, could push it backward.
The government, however, defends its position. Officials say the tax is part of a larger effort to discourage youth gambling while expanding the tax base.
The measure also aligns with the country’s IMF-backed Post-COVID-19 Economic Growth Program, which emphasizes diverse revenue streams. But Dadey believes there are better ways to guide youth away from gambling without stifling industry growth.
It’s not just industry voices pushing back but fans as well. Sports fans argue that the tax reduces their winnings, and many fear it could stifle a thriving industry. Since its passage in March 2023, the tax has faced opposition, with stakeholders warning it may drive bettors underground.
For Dadey, it’s a matter of timing and vision. He sees Ghana’s betting industry as something fragile yet full of promise, built with years of persistence to become what it is today. Taxing it now, he says, puts all that progress on shaky ground, risking a slide back to unregulated practices.
