Don't Compare GHS44.9m to GHS173m: GLOA acknowledges KGL's dominance in revenue generation

The Ghana Lotto Operators Association (GLOA) has acknowledged the dominant role of KGL Technology Limited in revenue generation for the National Lottery Authority (NLA), urging stakeholders, the media and the public not to draw direct comparisons between the contributions of private lotto operators and those of KGL.

In a statement attributed to political analyst, NPP activist and former PRO of NLA Dr Razak Kojo Opoku, GLOA noted that while some 29 licensed Private Lotto Operators collectively paid GHS44.9 million to the NLA, KGL contributed more than GHS173 million to the Authority, making it the largest single contributor to NLA revenue.

According to the association, the comparison fails to take into account the different operational models under which the entities function. It stressed that KGL operates as a collaborator under Section 2(4) of the National Lotto Act, 2006 (Act 722), while Private Lotto Operators operate under a different legal framework.

GLOA further stated that the primary mandate of the NLA, as stipulated in Section 2(1) of Act 722, is to raise revenue for the nation. In that regard, it said KGL has played a significant role in helping the Authority achieve its core objective.

The association argued that KGL's success in the digital lottery space has been driven by substantial investments in technology, software integration, cybersecurity systems, marketing and infrastructure, rather than exclusive access to mobile platforms.

It pointed to previous failed digital lottery initiatives by the NLA, including Mobile 5/90 and the *890# platform, as evidence that success in the mobile lottery market requires significant expertise, innovation and financial commitment.

According to GLOA, KGL bears extensive operational costs, including investments running into millions of dollars for systems maintenance, cybersecurity protection, payment of winning tickets, marketing and corporate social responsibility programmes.

The statement also highlighted additional financial support provided by KGL to the NLA, including an annual GHS3 million contribution to the NLA Stabilisation Fund and GHS2 million annually to support the NLA Good Causes Foundation.

Beyond revenue generation, GLOA said KGL contributes significantly to the broader economy through job creation, partnerships with telecommunications companies, banks, media organisations and other businesses.

The association estimated that KGL's overall contribution to the Ghanaian economy exceeds GHS1 billion annually through taxes, investments and support for education, healthcare and sports development.

Despite recognising KGL's leading role, GLOA emphasised that there remains sufficient room within Ghana's lottery industry for Private Lotto Operators, Lotto Marketing Companies and collaborators to coexist and thrive.

The association called for industrial harmony and cooperation among all players in the sector, stressing that both revenue generation and job creation are critical to national development.

Rather than engaging in rivalry and division, GLOA urged stakeholders in the lottery industry to work together to expand the market, support livelihoods and contribute to national growth.