A former PRO of the National Lottery Authority (NLA), Razak Kojo Opoku, has defended the partnership between the NLA and KGL Technology Limited, describing it as a “perfect deal” that continues to sustain Ghana’s lottery industry and boost national revenue.
In an interview with the Ghana News Agency, Mr Opoku said the comparison between the telecom business model and the lottery business model was misleading and based on an inadequate understanding of the industry.
“Comparing the sale of telecom scratch cards to the operations of the lottery business clearly shows a lack of full knowledge, experience, and competence in how the industry works,” Mr Opoku stated.
According to him, the telecommunications and lottery sectors operate under different regulatory frameworks, the former under the National Communications Authority (NCA) and the latter under the National Lottery Authority (NLA).
He argued that equating the business models of the two sectors was “dishonest and misleading,” as each had distinct legal and operational structures.
Mr Opoku explained that KGL Technology Limited operated as an online Lotto Marketing Company (LMC) under a legal license from the NLA, in compliance with the National Lotto Act, 2006 (Act 722).
He said KGL prepaid for NLA coupons quarterly, with all payments made directly into the official Lotto Account operated by the Authority. The net balances, after statutory deductions, are then transferred by the NLA to the Consolidated Fund.
He emphasised that KGL had invested millions of dollars in technology infrastructure to enable the online sale of NLA’s 5/90 lottery through USSD and web platforms, significantly enhancing the Authority’s revenue generation.
“It is not true that NLA pays commissions to KGL. The current arrangement is supported by Sections 2(4) and 37(d) of Act 722, which give the Authority discretion in structuring its licensing agreements,” Mr. Opoku clarified.
Responding to claims that KGL has monopolised the online lottery business, Mr Opoku said the NLA had granted exclusive licenses to different companies for specific products.
He cited examples including: 959 for KGL 5/90, 766 for Atena, 787 for Wotiriyie, and 946 for Game Park.
He noted that the Authority had never issued multiple licenses for the same online lottery product, a standard practice in the global lottery industry.
Mr Opoku also dismissed assertions that 80–90 per cent of lottery players had moved to online platforms, describing them as “unsupported by any empirical research.”
He explained that while online sales have grown, traditional kiosk-based sales and private banker-to-banker operations continue to dominate about 80 per cent of the market due to higher commissions and direct community engagement.
Highlighting the financial impact of the partnership, Mr Opoku said KGL contributed GH₵157.6 million to the NLA in 2024 alone, an amount he said was unprecedented in the Authority’s history.
“If NLA used eight years, from 2013 to 2020, to pay GH₵182 million into the Consolidated Fund, then KGL’s contribution of GH₵157.6 million in one year should be applauded,” he said.
He added that arguments suggesting NLA should pay a 31 per cent commission to KGL were “financially unsound,” as the company already bears the cost of technology, marketing, maintenance, and risk management.
Mr Opoku challenged The Fourth Estate to substantiate its claim that KGL generated GH₵3 billion annually, arguing that the figure was not supported by official data.
“If the Ghana Revenue Authority knows the actual revenue KGL generates, then it is impossible for NLA, the regulator, to be unaware,” he said.
He further stated that the NLA-KGL partnership had not breached any section of Act 722 or the Lottery Regulations, 2008 (L.I. 1948), and that there was no evidence of corruption, mismanagement, or conflict of interest in the arrangement.
According to him, both the current NLA Board and the Ministry of Finance were satisfied with the performance of the deal, which had improved the Authority’s revenue base without burdening the public purse.
Mr Opoku likened the partnership to that of a car owner and a skilled driver, saying that “if the car owner (NLA) is satisfied with the performance of the driver (KGL), outsiders have no justification to interfere.”
He warned that any move to abruptly terminate or replace KGL could expose the state to judgment debts and jeopardise the sustainability of the lottery sector.
“The NLA-KGL deal remains one of the most strategic and transparent partnerships in Ghana’s gaming industry,” Mr Opoku concluded.
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