The lottery industry in Ghana if effectively managed, could generate over GHS 600 million annually, Member of Parliament for Akuapem North Constituency in the Eastern, Sammi Awuku has suggested.
Presenting a statement on the floor of Parliament on Thursday 6, Frebruary, 2025, on ‘Enhancing Lottery Proceeds and Addressing Challenges in Ghana’s Lottery Sector’, Mr. Awuku, who is the immediate past Director-General of the National Lottoeries Authority (NLA), expressed conviction that if the sector is properly regulated, Ghana could maximize the use of lottery proceeds for national development.
The lawmaker has accordingly proposed clear-cut policies to drive tangible growth in the lottery industry through tax incentives and intensify efforts to address illegal operations and inefficiencies.
The NLA, established under the National Lotto Act, 2006 (Act 722), was mandated to conduct national lotteries to raise revenue for the state. Currently, the NLA generates over GHS 300 million annually, but its profits are channeled into the Consolidated Fund, where their impact on targeted development initiatives is diluted due to general government expenditures.
Proposed Reforms and Incentives
Mr. Awuku proposed that tax incentives would encourage industry growth, improve efficiency, and motivate illegal lottery operators to register with the NLA.
He further emphasized that illegal operators control about 60% of Ghana’s lottery market, significantly depriving the state of revenue. By introducing incentives, the government can increase compliance, reduce tax underreporting, and enhance revenue collection.
Addressing Gambling Addiction and Social Impact
While advocating for revenue optimization, Mr. Awuku also highlighted the social risks associated with lottery participation, particularly the risk of addiction among minors and vulnerable individuals. To mitigate these concerns, he called for the establishment of community-based social centers to help individuals struggling with gambling addiction, anxiety, and related social issues.
“I also urge the NLA and its third-party collaborators to set up advisory bureaus in district and regional offices to support individuals battling gambling addiction, in line with international standards set by the World Lottery Association (WLA),” he stated.
Amending the National Lotto Act for Better Utilization of Funds.
To achieve this, he proposed amending the National Lotto Act, 2006 (Act 722) in collaboration with the Ministry of Finance to redirect lottery revenues toward critical sectors such as: Healthcare, Education,Youth Development, Social interventions for persons with disabilities, elderly citizens, and marginalized communities, the District Assemblies Common Fund to assist MPs in constituency development
Tackling illegal lottery operations
Illegal gambling remains a major challenge worldwide, with $1.8 trillion lost to illicit operations in 2022. Ghana is no exception, with unlicensed lottery operators reportedly controlling about 60% of the market, depriving the government of millions in revenue.
To curb this issue, Mr. Awuku urged Parliament to amend Act 722 to impose stricter penalties, including: Higher fines and longer jail terms for illegal lottery operators, forfeiture of assets acquired through unlawful lottery activities to the NLA for operational improvements, by implementing these measures, he believes Ghana can streamline the lottery sector, boost national revenue, and ensure greater social responsibility in the industry.
By: Christian Kpesese
