GLOA makes case for jobs, enterprise and community impact

The Ghana Lotto Operators Association (GLOA) has defended the contribution of licensed Private Lotto Operators (PLOs) to the National Lottery Authority (NLA) and the wider economy, stating that recent comparisons between KGL Technology Limited’s reported payments to the state and the contributions of private operators present a distorted picture of the lottery industry.

According to the Association, the 29 licensed Private Lotto Operators (PLOs) operating under the NLA remain among the sector’s largest contributors to employment, grassroots economic activity and revenue generation, and should be assessed on the basis of their overall economic impact rather than headline revenue figures alone.

GLOA contends that comparisons between KGL’s reported GH¢173 million contribution and the combined GH¢44.9 million paid by private operators in licence fees in 2025 fail to account for the fundamentally different operating conditions under which the two entities function.

Different operating models

The Association said Private Lotto Operators and KGL operate under distinct frameworks within the lottery industry.

While the 29 operators function as licensed lotto operators under the National Lotto Act, it noted that KGL operates as a collaborator of the National Lottery Authority under a separate arrangement.

As such, GLOA argued that direct comparisons of revenue contributions without considering the respective operating environments of the two entities are inherently flawed.

“The public is being presented with a comparison between entities operating under fundamentally different conditions,” the Association said.

Exclusive market access

A key concern raised by GLOA relates to what it describes as KGL’s exclusive access to a dedicated Unstructured Supplementary Service Data (USSD) platform.

According to the Association, the arrangement gives KGL access to a significant segment of the lottery market through mobile-based transactions, providing a competitive advantage that is unavailable to licensed private operators.

GLOA stated that market access is a major driver of revenue generation in the lottery business and should be taken into account when evaluating contributions to the NLA.

The Association maintained that exclusive access to a dedicated USSD platform expands transaction volumes while reducing operational complexity.

Heavy infrastructure investments

Unlike operators that rely primarily on digital channels, GLOA said private operators maintain extensive nationwide physical networks that require substantial investment.

According to the Association, operators finance point-of-sale (POS) terminals, lotto kiosks, transportation systems, maintenance services, support infrastructure and administrative operations across the country.

They are also responsible for recruiting, training and supporting thousands of lotto writers, agents, supervisors and sub-agents nationwide.

GLOA said these investments account for approximately 60 percent of operating costs before customer winnings, taxes and other regulatory obligations are considered.

Equipment procurement, repairs, maintenance, transportation and personnel expenses collectively represent a significant financial commitment that enables lottery services to reach communities across the country, the Association added.

Contribution to NLA revenue

Despite these operational costs, GLOA said PLOs continue to make substantial contributions to the National Lottery Authority.

The Association disclosed that each of the 29 licensed operators pays an annual licence fee of GH¢1.55 million, bringing total licence fee payments to approximately GH¢44.9 million in 2025.

Beyond these payments, GLOA said operators also contribute through taxes paid to the state, payments to the Good Causes Foundation and compliance with various regulatory obligations.

According to the Association, these payments constitute an important source of funding within the lottery ecosystem and demonstrate the operators’ commitment to supporting the objectives of the National Lottery Authority.

More than one million livelihoods

GLOA said one of the most overlooked aspects of the private lottery sector is its role as a source of employment.

According to the Association, more than one million Ghanaians derive direct or indirect livelihoods from the activities of private operators.

The nationwide network includes lotto writers, agents, supervisors, sub-agents, transport operators, maintenance personnel and other support workers whose incomes depend on the industry’s continued growth.

The Association said lotto writers receive commissions equivalent to 25 percent of gross revenue, while supervising agents earn an additional five percent.

These commissions, it noted, inject significant amounts of money into local economies and provide sustainable incomes for thousands of households.

“The value of supporting more than one million livelihoods must form part of any serious assessment of the industry’s contribution,” GLOA said.

Wider economic role

Beyond employment, the Association argued that the lottery industry plays a significant role in stimulating economic activity.

According to GLOA, demand for kiosks, equipment, transportation, maintenance services and other operational requirements supports numerous small and medium-sized enterprises across the country.

These expenditures create economic opportunities in both urban and rural communities while generating additional tax revenue for the state.

The Association said the private lottery sector has evolved into an important economic ecosystem that supports entrepreneurship and financial inclusion, particularly within the informal sector.

Call for broader assessment

GLOA has therefore urged government, regulators and policymakers to adopt a broader framework for assessing contributions within the lottery industry.

According to the Association, evaluations should consider not only direct revenue payments but also employment creation, tax contributions, infrastructure investment, payments to the Good Causes Foundation, operational costs, market access and long-term industry sustainability.

GLOA maintained that private operators have consistently supported the National Lottery Authority while making significant investments in jobs and economic development.

The Association also added that the future of Ghana’s lottery sector should be guided by policies that recognise the full economic value generated by all stakeholders, particularly their contribution to employment creation, revenue mobilisation and national development.

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