The NLA-KGL Deal: A Detailed Overview
The National Lottery Authority (NLA) has been at the center of a controversy regarding its agreement with KGL Technology Limited. According to some reports, this deal involved the transfer of a GHS 3 billion business for an annual payment of GHs 170 million. However, the facts presented by the NLA suggest otherwise, and they have provided detailed information to clarify the situation.
15-Year Contract of KGL
KGL Technology Limited is not the only company that has had a long-term contract with the NLA. Here are some key points:
- Lots Services Ghana Limited had a 15-year contract with NLA in 2013, subject to automatic renewal.
- Simnet Ghana Limited had a 10-year contract in 2015, also with automatic renewal.
- Alpha Lotto Limited and other private lotto operators signed 10-year contracts in 2024, with similar renewal terms.
- All current lotto marketing companies operating under NLA were issued licenses in 2006, as per Act 722 of the National Lotto Act.
- Some lotto receivers who previously worked with the Department of National Lotteries (DNL) were admitted as lotto marketing companies under Act 722, having operated for 40-50 years.
Contract of KGL
It is important to note that KGL Technology Limited does not have a traditional “contract” with the NLA. Instead, the arrangement is a Licensing Agreement, issued by the NLA board in accordance with specific sections of Act 722 and related regulations. These agreements are not procurement contracts but licensing agreements, which explains why they do not go through the standard procurement process.
NLA Gave Away A GHS 3 Billion Business to KGL for Peanuts
Contrary to claims, the NLA did not operate a GHS 3 billion business before KGL started operations. The highest revenue generated by the NLA before KGL was GHS 401,711,318 in 2017. Over eight years (2013–2020), the total revenue was GHS 2.7 billion, with GHS 1.3 billion paid out as prizes. This data contradicts the assertion that a GHS 3 billion business was given away.
GHs 170 Million Peanuts Paid by KGL to NLA
From 2013 to 2020, the NLA paid a total of GHS 182 million to the Consolidated Fund. In contrast, KGL’s payments from 2019 to 2024 exceed this amount, making the NLA-KGL deal one of the most beneficial arrangements for the authority.
Does NLA Have the Capacity to Operate the 5/90 USSD Short Code?
Under Act 722 and L.I. 1948, the NLA cannot sell lottery products directly to the public. It relies on lotto marketing companies or collaborators for sales. Additionally, the NLA has no power to pre-finance lottery operations.
Is KGL the Only LMC Ever to Have Operated 5/90 USSD?
Several attempts were made to operate the 5/90 USSD short code in the past, including projects like “Mobi Game 2 Sure,” “Mobile 5/90,” and “890#.” However, these initiatives failed. In 2020–2021, Alpha Lotto Limited attempted illegal operations of the 896# short code, which was eventually shut down.
Why Exclusive License to KGL?
The NLA has never granted multiple USSD or web online licenses for a single lottery product. Each license is exclusive, ensuring that each product operates under a unique short code. Examples include:
- 787 for Wotiriyie Lottery
- 766 for Atena
- 959 for NLA 5/90
- 446 for Daywa Lotto 5/39
- 946 for Pick4/Pick1
- 987 for Lucky 3
Thus, the claim that KGL enjoys an unfair monopoly is misleading.
Payments to the Lotto Account
KGL makes quarterly payments to the NLA for submission to the Lotto Account, fulfilling Section 32 of Act 722. KGL is also responsible for all losses on the *959# short code and is not compensated by the state or the Lotto Account.
Conclusion
The NLA-KGL deal is not as it appears. KGL’s contributions to the NLA far exceed the initial allegations, and the arrangement is based on a licensing agreement rather than a contract. The NLA has no investments in IT infrastructure, daily ticket payments, marketing, or technical fees—responsibilities that fall entirely on KGL. Furthermore, KGL has consistently paid taxes to the Ghana Revenue Authority (GRA) without any defaults.
The investigation by the Fourth Estate and Media Foundation for West Africa (MFWA) has been criticized as misleading and unethical, with claims that lack factual support. The NLA urges the public to rely on verified data rather than sensationalized reports.
