The National Lottery Authority (NLA) has reportedly lost around GH¢1 billion due to the activities of illegal lotto operators across Ghana. These unauthorized operators and agents conduct their business without proper licenses or adherence to the regulations set by the NLA, significantly undermining the Authority’s revenue generation efforts. This loss not only affects the NLA but also impacts the funds available for various government initiatives that rely on lottery revenues.
At a recent media briefing, Sammi Awuku, the Director-General of the NLA, highlighted the severity of the situation and outlined several strategies to tackle the issue. These strategies include a comprehensive collaboration with state agencies such as the Ghana Revenue Authority (GRA) and the formation of a special task force involving all national security apparatus to expose and arrest illegal operators. Additionally, the NLA plans to enforce stricter regulations, conduct more frequent inspections, and possibly introduce new technological measures to better monitor and regulate the lottery industry.
To make legal operations more attractive and increase revenue, the NLA has also increased the commission paid to legal lottery operators from 20% to 25% on stakes. This move is part of a broader effort to encourage more operators to join the regulated system and reduce the appeal of illegal operations.
In recent years, the NLA has faced financial challenges, recording a loss of GH¢788,818 in 2020 and a more significant loss of GH¢17.1 million in 2021. However, the Authority managed a turnaround in 2022, posting a profit of GH¢2.5 million, followed by GH¢2.6 million in 2023. This recovery was driven by a substantial increase in miscellaneous income, which rose from GH¢35.54 million in 2020 to GH¢133.45 million in 2023.
To outsmart illegal operators, the NLA has also started conducting its draws at unannounced times of the day, while working closely with staff and the general public to intensify efforts to end illegal activities. Mr. Awuku acknowledged that previous attempts to clamp down on illegal operators had not been fully successful but expressed confidence that a new, carefully crafted strategy, supported by the President and government, would succeed this time. He emphasized the importance of regularizing the activities of illegal operators and invited them to join the legal framework.
Despite the estimated GH¢1.8 billion yearly value of Ghana’s lotto industry, the NLA currently only captures about GH¢800 million, with the remaining GH¢1 billion lost to illegal operators. The NLA is determined to close this gap and ensure that the state benefits fully from the industry.
