The staff of the National Lottery Authority (NLA) in Ghana, represented by the Financial and Business Services Employees Union (FBSEU of NLA), have issued a dire warning regarding the alleged “private capture” of the state-owned lottery industry. Their petition to the Attorney General and the newly appointed Director General of the NLA paints a picture of systematic erosion of the Authority’s mandate through a web of questionable contracts and licensing agreements with private entities. The union alleges that these arrangements, implemented over the past six years, not only violate the National Lotto Act of 2006 but have also severely crippled the NLA’s financial health and operational capacity, putting its very survival at risk.
At the core of the union’s concerns is the proliferation of Private Lotto Operators (PLOs), whose contracts and licenses are deemed unlawful. The union argues that these agreements have undermined the legal framework governing public lottery operations, diverting revenue streams away from the NLA and into private hands. This has resulted in a dramatic decline in the NLA’s revenue, estimated at a staggering GH₵250 million loss between 2017 and 2024, primarily due to the rise of online platforms and third-party operators dominating the market. The consequences of this revenue shortfall are far-reaching, impacting the livelihoods of Lotto Marketing Companies (LMCs), the traditional backbone of the NLA’s nationwide operations, and leading to widespread job losses.
The union specifically points to KEED Ghana Limited (KGL), the operator of the NLA’s popular 5/90 online games, as a prime example of this alleged private capture. They accuse KGL of operating beyond its designated role as a Lotto Marketing Company, alleging that KGL retains lottery proceeds in private accounts, pays winnings without NLA oversight, and refuses to disclose crucial revenue data. Most concerningly, the union claims that the previous NLA Board secretly granted KGL a 25-year exclusive license to operate online lotto, a move they believe jeopardizes the NLA’s autonomy and long-term viability. This exclusive license, according to the union, effectively hands over control of a significant portion of the lottery market to a private entity, further diminishing the NLA’s role and revenue potential.
Furthermore, the union’s petition implicates other private companies like Bluestar Lotto, Alpha Lotto, and Luma Technologies. These companies, initially contracted as technical service providers, were allegedly granted direct licenses to operate as private lotto entities. This arrangement, the union argues, has not only left the NLA with outdated systems but has also actively pushed out experienced LMCs, further weakening the institution and consolidating control within the hands of a few private operators. This practice, according to the union, further marginalizes the NLA and deprives it of the expertise and network that LMCs traditionally provided.
To address these critical issues, the union demands immediate intervention from the government. Their demands include a comprehensive review and suspension of all existing third-party agreements, a thorough audit of licensing practices to identify and rectify irregularities, and the formation of a new NLA Governing Board composed of individuals with a deep understanding of the Authority’s history and operations. They believe that such a board will prioritize the NLA’s interests and ensure its mandate is upheld. The union emphasizes the urgency of these actions, warning that without swift and decisive intervention, the NLA faces imminent collapse, a scenario that would have significant implications for the state’s revenue generation and the livelihoods of those dependent on the lottery industry.
The FBSEU of NLA has made it clear that they are prepared to take all necessary measures to protect the integrity of the NLA and safeguard the welfare of its staff. This includes the possibility of industrial action, such as protests and the suspension of lotto draws, if their concerns are not adequately addressed. Their strong stance underscores the seriousness of the situation and the union’s determination to prevent the alleged private capture of a vital state institution. The future of the NLA, and potentially the entire lottery industry in Ghana, hangs in the balance, pending the government’s response to these urgent concerns.
