Public Awareness of National Lotto

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Understanding the National Lottery Authority (NLA) and Its Powers

Many people, due to a lack of understanding about the lottery industry, have suggested that the National Lottery Authority (NLA) should focus on operating NLA 5/90 USSD and Web online lottery instead of relying on Third Party Companies and Collaborators. They argue that the NLA is the only body legally mandated to operate lottery under Section 4 of the National Lotto Act, 2006 (Act 722). However, this perspective is based on a misunderstanding of the legal framework and the actual powers of the NLA.

To clarify, the NLA has six main powers under the National Lotto Act, 2006 (Act 722) and the Lottery Regulations, 2008 (L. I. 1948). These include:

  • Operational Powers
  • Regulatory Powers
  • Supervisory Powers
  • Management Powers
  • Collaboration/Partnership/Joint Venture Powers
  • Powers of the Board of NLA

These powers are clearly outlined in various sections of the Act and the regulations, which provide a comprehensive framework for how the NLA operates and interacts with other entities.

Operational Powers of the NLA

Under Section 2(2) of Act 722, the NLA is established as the institution responsible for conducting national lotto. Section 4(1) of Act 722 states that no person other than the NLA can operate any form of lottery. However, it’s crucial to understand that “operating” a lottery does not mean selling tickets or managing sales. It refers specifically to the conduct and supervision of lotto draws.

The operational powers of the NLA are implemented through several sections of the Act and regulations, including:

  • Section 3 of Act 722 (Time and place for conducting National Lotto)
  • Section 23 of Act 722 (Draw of National Lotto)
  • Section 24 of Act 722 (Supervision of draw)
  • Regulation 1 of L.I. 1948 (Lottery Draw Committee)
  • Regulation 21 of L. I. 1948 (Draw of national lottery)
  • Regulation 22 of L. I. 1948 (Supervision by the Lottery Draw Committee)

Therefore, the NLA’s operational responsibilities are strictly limited to conducting and supervising lotto draws, and it has no role in the sale of lottery tickets or products.

Regulatory Powers of the NLA

The NLA also has regulatory powers, which involve licensing and overseeing various entities within the lottery sector. This includes:

  • Licensing of Lotto Marketing Companies and Collaborators
  • Licensing of Private Lotto Operators using Veterans Administration Ghana (VAG), Act 844
  • Ensuring compliance with Act 722, L. I. 1948, and Section 22 of Act 844

These regulatory powers are implemented through specific sections of the Act and regulations, such as:

  • Section 5 of Act 722 (Licensing of Lotto Marketing Companies)
  • Section 6 of Act 722 (Application for Lotto Marketing Companies)
  • Section 7 of Act 722 (Grant of license and license fee)
  • Regulation 12 of L. I. 1948 (Online lottery)

KGL Technology Limited was licensed to sell NLA 5/90 lottery products via USSD and Web online under these regulatory powers, making the NLA-KGL deal fully compliant with the law.

Supervisory Powers of the NLA

The NLA also has supervisory powers, which involve monitoring and reviewing the activities of licensed entities. These powers are implemented through:

  • Section 15 of Act 722 (Issue of Coupons)
  • Section 16 of Act 722 (Supply of coupons to Lotto Marketing Companies)
  • Regulation 6 of L. I. 1948 (Prohibitions)
  • Regulation 18 of L. I. 1948 (Duties of staker)

Only the Board of the NLA is authorized to supervise the business activities of KGL Technology Limited, and they regularly review the agreements between the NLA and KGL.

Management Powers of the NLA

Section 35(2) of Act 722 explicitly states that the NLA shall not retail lotto coupons to stakers. This means that the NLA cannot directly sell lottery products to the public. Instead, it relies on licensed entities like KGL Technology Limited to handle the sales.

The management powers of the NLA are implemented through:

  • Section 25 of Act 722 (Winnings)
  • Section 28 of Act 722 (Commission)
  • Regulation 32 of L. I. 1948 (Prize disbursement account)

These powers ensure that the NLA manages its finances responsibly and adheres to the legal requirements.

Collaboration/Partnership/Joint Venture Powers of the NLA

Under Section 2(4) of Act 722, the NLA can operate other games of chance or enter into collaborations, partnerships, or joint ventures with other entities. This provision allows the NLA to work with companies like KGL Technology Limited, provided that losses from such ventures are not covered by the State or the Lotto Account.

The NLA-KGL deal is fully supported by the provisions of Section 2(4) and Regulations 12, 13, and 14 of L. I. 1948. These regulations give the NLA the authority to authorize the Director-General to select, operate, and contract for the operation of online lottery, subject to certain conditions.

Powers of the Board of NLA

The Board of the NLA has the power to devise methods to maximize revenue for the State, as stated in Section 37(d) of Act 722. This aligns with Section 2(1) of Act 22, which emphasizes that national lotto should be conducted for the purpose of raising revenue for the nation.

The NLA-KGL deal is considered one of the best license agreements ever issued by the NLA, as it has generated significant financial resources for the Authority. Unlike some other license agreements, the NLA-KGL deal has delivered substantial benefits to the State.

Addressing Misinformation

Some media outlets, such as the Fourth Estate and Mr. Sulemana Briamah, have made misleading claims about the NLA-KGL license agreement. They argue that the NLA should operate the lottery directly instead of relying on third-party companies. However, these claims are based on a misinterpretation of the law and a lack of understanding of the NLA’s actual powers.

It is important to note that the NLA has never been able to conduct a lottery with the specific objective of providing care and protection for the physically or mentally afflicted, the needy, the aged, orphans, and destitute children, as outlined in Section 2(3) of Act 722. The NLA 5/90 is not a lottery product designed for this purpose.

Real Problems at the NLA

While the NLA-KGL deal is legitimate and beneficial, there are real issues that need attention. These include:

  • Illegal lottery operators controlling 80% of the market without paying anything to the NLA or GRA
  • Procurement contracts with technical service providers that allow them to earn 6% of every gross revenue
  • Payment of 25% commission to Lotto Marketing Companies, which is higher than in other countries

These issues are more pressing than the NLA-KGL deal and should be the focus of public concern.

In conclusion, the NLA operates within a well-defined legal framework and has the necessary powers to manage the lottery industry effectively. The NLA-KGL deal is a valid and beneficial partnership that supports the growth of the lottery sector in Ghana. It is essential to address the real challenges facing the NLA rather than focusing on misinformation and baseless criticisms.

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