Member of Parliament Samuel Awuku from Akuapem North and the past National Lottery Authority (NLA) Director-General stated during his parliamentary address that unlicensed lottery operators maintain control of 60% of Ghana’s lottery market. The large number of unlicensed operators controlling 60% of the market leads to yearly revenue reduction for the state.
Mr. Awuku identified unauthorized lottery operations as “the bane of the lottery and gambling industry” which requires immediate market reform to achieve both market recovery and increased state income.
According to Section 4(2) of the National Lotto Act, 2006 (Act 722), a defendant may receive either 2,500 penalty units as a fine or face imprisonment for three years.
According to Mr. Awuku, the penalties imposed by law are insufficient because the operators of illegal activities have abundant financial capacity that enables them to endure the fines while continuing their operations without hindrance. Mr. Awuku presented several policies which would help fight illegal lottery operations.
Mr Awuku asked members of Parliament to change existing laws through increased punishment that includes larger fines and extended prison sentences together with confiscating all stolen assets.
Mr. Awuku proposed that the NLA should offer tax benefits to unregulated operators to seek official licensing which will build the legal market and boost government income.
The NLA has the potential to increase its annual revenue above GHS 600 million through the implementation of the strategies according to Mr Awuku.
A critical need exists to implement strong regulatory reforms and enforcement measures that will combat the illegal lottery operations spreading throughout Ghana.
The government seeks control of the lottery industry through legal framework updates while creating special benefits which will encourage companies to follow the rules to ensure public revenues support national development.
