Mr Razak Kojo Opoku, University Lecturer and former PR Manager of NLA has stated that KGL does not operate or conduct 5/90 national lotto but only retails it.
“Under Act 722, NLA conduct or operate lottery in Ghana is NOT the same as NLA to Sell or Retail lottery in Ghana. According to Section 4(1) of Act 722, “a person other than the Authority shall not operate any form of lottery”. However, according to Section 35(2), “the Authority shall NOT retail lotto coupons to lotto stakers.
“To operate or conduct lotto simply means to organize Lotto Draws for the public, and this has nothing to do with selling or retailing lotto”, Mr Opoku emphasized.
A statement copied to the Ghana News Agency in Accra said given the terrible nature of the licensing deal, both commercially and legally, the least expected will be an advice that makes it possible for NLA to earn millions of cedis from its 5/90 lotto sold online.
“The current Director-General of the NLA has already told Parliament that the NLA can earn more from the deal
“This reaffirmed the notion that Sulemana Briamah is clearly ignorant about the laws and their interpretations governing the operations, or conduct, retail, and management of 5/90 national lotto.
“We thank God that, finally Sulemana Briamah has admitted that KGL is indeed a licensing Lotto Marketing company(LMC)”.
The statement said Section 28 of Act 722, “A Lotto Marketing Company of National Lotto shall be paid commission determined by the Board.
“Per Section 28 of Act 722, would NLA be able to pay a commission to Lotto Marketing Companies trading via USSD and Web Online since the pre-financing arrangements for selling of lottery products via Online (digitalized lottery tickets or digital lottery tickets or online lottery tickets) are completely different from selling lottery products via Point of Sale Terminals(POSTs) in the Lotto Kiosks? As a matter of fact, Section 28 of Act 722 is ONLY applicable to the Lotto Marketing Companies in the kiosks”.
The statement said lotto Marketing Company selling lottery products via Online need the partnership of Mobile Network Operators(MNOs), and specialized ISO Certification for its own infrastructure.
“However, a Lotto Marketing Company selling lottery products only needs the assisted services of NLA partnered Technical Service Providers such as Lots Services Ghana Limited and Simnet Ghana Limited, as well as NLA partnered Banks across the Country where they would pre-finance the sale of Lotto through loading of credits in exchange for money at the accredited Banks.
“Also, per Section 28 of Act 722, how practically possible would NLA be able to pay a Commission to a Lotto Marketing Company whose nature of license is also seen as a collaboration under Section 2(4) of Act 722 where losses from the game of chance, the collaboration, partnership or joint venture ‘shall not’ be compensated for by the State or from the Lotto Account provided for under Section 32.
“According to Section 32(2) of Act 722, “The proceeds of sale of coupons of National Lotto, any administrative fines imposed on Lotto Marketing Companies and proceeds of any forfeiture made under this Act shall be paid into the Lotto Account”.
Per Section 32(3) of Act 722, how would NLA be able to practically apply this provision to Online Lottery since Coupons are NOT the same as digitalized lottery tickets or digital lottery tickets or online lottery tickets?
“How practically possible and which other existing laws can NLA use to directly control, supervise, regulate, manage, and monitor the platforms of Mobile Network Operators(MNOs)?
“According to Section 32(3) of Act 722, “The Authority shall pay out of the Lotto Account prize monies for winners of National Lotto and Commissions to Lotto Marketing Companies licensed by the Authority”.
Per Section 32(3) of Act 722, how practically possible would NLA be able to directly pay winners of National Lotto via digitalized lottery tickets or online lottery tickets or digital lottery tickets since NLA has no jurisdictional powers and supervision over the Mobile Network Operators(MNOs)? Can National Communications Authority(NCA) even have regulatory power to directly transfer monies to momo vendors and beneficiaries of momo transactions per National Communications Authority Act, 2008(Act 769)?
The Section 32(3) ONLY applies to Lotto Marketing Companies who are selling lottery products via Point of Sale Terminals(POSTs) in the Lotto Kiosks. Administratively, the NLA has existing Revenue Sharing Formula with Lotto Marketing Companies using Point of Sale Terminals in the Kiosks, Technical Service Providers such as Lots Services Ghana Limited and Simnet Ghana Limited which is NOT even stated in Act 722 and L. I. 1948.
The Section 32(3) is NOT applicable to KGL Technology Limited and other Lotto Marketing Companies whose licenses are also considered as a collaboration, partnership or joint venture.
Also, per Regulation 13(3) of Lottery Regulations, 2008(L.I. 1948) under Procedures for Claim of Online Prize, “If the ticket is determined to be a winning ticket, the Lotto Marketing Company or partner bank shall make payment of the amount due the claimant”. Again, under Regulation 13(11), “The Board may authorise the Director-General to designate a limited number of Lotto Marketing Companies to act as agents to validate any claim and pay winning prizes in excess of the permitted amounts but not more than the specified amount authorised by the Board”.
“Section 32(4) of Act 722 can ONLY be fully implemented if Section 32(3) of Act 722 has been fully implemented.
According to Section 32(3) of Act 722, “The Authority shall pay out of the Lotto Account prize monies for winners of National Lotto and commissions to Lotto Marketing Companies licensed by the Authority”. This provision must be satisfied before you can proceed with the implementation of Section 32(4) of Act 722 which states that, “The Authority shall transfer the net balance in the Lotto Account on monthly basis to the Consolidated Fund”.
So, what if there is NO net balance in the Lotto Account after the payments of: Prize monies for winners of National Lotto as stated in Section 32(3) of Act 722?
“ Commissions to Lotto Marketing Companies licensed by the Authority as stated in Section 32(3) of Act 722, Operational and capital expenditure from the Lotto Fund as stated in Section 50 of Act 722”?
The statement said the revelation above based on Facts and Data, it was clear that, for NLA to transfer money to the Consolidated Fund in accordance with Section 32(4) of Act 722, there was the need for the NLA to breach Section 32(3) of Act 722.
“This has always been the case from enactment of National Lotto Act, 2006(Act 722).
“From 2012-2020(9years), NLA transferred a total amount of GHS 209, 409, 495.24 to the Consolidated Fund yet within that same period of 2012-2020, NLA was indebted to winners of national lotto, Lotto Marketing Companies, Technical Service Providers, Suppliers etc. to the tune of GHS 233, 121, 889.28
“So what is the justification for the Fourth Estate and Sulemana Briamah blaming KGL Technology Limited as the cause of NLA’s inability to transfer money to the Consolidated Fund in accordance with Section 32(4) of Act 722? Completely no basis at all”.
The statement wondered why NLA necessarily transfer money to the Consolidated Fund if they haven’t been able to pay winners of national lotto, commissions to Lotto Marketing Companies, Fees to Technical Service Providers, Salaries and benefits of NLA Workers etc.?
“The alleged troubling and systemic pattern of decline in NLA’s contribution to the Consolidated Fund since 2019 had absolutely nothing to do with KGL.
“Since 2019, KGL has paid over 500 million cedis to the NLA, and how do you blame KGL if NLA is unable to transfer the money paid by KGL to the Consolidated Fund? Is that how Fourth Estate understands public accountability?
“You forgot to write something under point 8 before moving on to point ,
Please, next time, peruse your Articles well before sharing them.”
“In 2018, NLA transferred approximately GHC 33.9million to the Consolidated Fund. It is NEVER true that NLA transferred GHC 37.1million to the Consolidated Fund.
“In 2019, the NLA-KGL deal was signed in November 2019, so how could the operations of KGL affect the profits of NLA, as well as the amount transfered to the Consolidated Fund?
It said it was quite surprising how application of wisdom and knowledge were always lacking in the intellectual arguments put forward against KGL.
“ KGL was operating under a provisional license from 2019-2021, so on what basis can anyone blame KGL for the inability of NLA to transfer money to the Consolidated Fund?
“Is KGL the only company licensed by NLA to retail 5/90 lottery products in Ghana? Are you aware that NLA has licensed over 20-50 companies running lottery products in Ghana. Have you found out how much NLA also gets from these licensed companies?
“Have you considered the Administrative and Operating expenditures of NLA from 2019-2024?
“In 2014, NLA transferred GHS 11.8 million to the Consolidated Fund. Was KGL responsible for the decline in 2014?
“Are you jealous of the performance of KGL or you were expecting KGL to fail?
“KGL makes profits lesser than what the company pays to NLA, and GRA.
“KGL judiciously uses its profits to undertake impactful Corporate Social Responsibilities and Corporate Social Investments across the country.
It said in 2024, KGL paid NLA GHS 157.6 million while KGL only made GHC 70 million. That’s fact. NLA earned more than KGL in 2024. The question any sensible person would ask is that, how did NLA use the GHS 157.6 million that KGL gave them in 2024?
“GHC 3 billion revenue now the same as profit? What a joke of analysis. Take the costs of payments of winning tickets, marketing, I. T. infrastructure and systems, fees to Mobile Network Operators etc out of the GHS 3 billion, and come back again with sensible analysis.
It said KGL was here to stay, grow from strength to strength, and support governments to deliver value to the good people of Ghana.
“It is NEVER true that, NLA will bear all the responsibility of paying all winners who may have bought their NLA 5/90 coupons through the KGL platform if KGL is nowhere to be found”.
- President Commissions 36.5 Million Dollars Hospital In The Tain District
- You Will Not Go Free For Killing An Hard Working MP – Akufo-Addo To MP’s Killer
- I Will Lead You To Victory – Ato Forson Assures NDC Supporters
Visit Our Social Media for More
About Author
