Accra: Mr Razak Kojo Opoku, a former Public Relations Officer of the National Lottery Authority (NLA), has staunchly 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 enhance national revenue.
According to Ghana News Agency, Mr Opoku explained that comparing the telecom business model to the lottery business model was misleading and based on inadequate understanding of the industry. He stated, ‘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 highlighted that 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.
He further explained that KGL Technology Limited operates as an online Lotto Marketing Company (LMC) under a legal license from the NLA, in accordance with the National Lotto Act, 2006 (Act 722). KGL prepays for NLA coupons quarterly, with all payments made directly into the official Lotto Account operated by the Authority, and the net balances, after statutory deductions, are then transferred by the NLA to the Consolidated Fund.
Mr Opoku emphasized that KGL has 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. He clarified that NLA does not pay commissions to KGL, as the current arrangement is supported by Sections 2(4) and 37(d) of Act 722, which provides the Authority with discretion in structuring its licensing agreements.
Addressing claims that KGL has monopolized the online lottery business, Mr Opoku stated that the NLA has granted exclusive licenses to different companies for specific products, citing examples such as 959 for KGL 5/90, 766 for Atena, 787 for Wotiriyie, and 946 for Game Park. He noted that the Authority has 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 as ‘unsupported by any empirical research.’ He explained that while online sales have grown, traditional kiosk-based sales and private banker-to-banker operations continued 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 reported that KGL contributed GH?157.6 million to the NLA in 2024 alone, which he described as unprecedented in the Authority’s history. He compared this to the GH?182 million the NLA paid into the Consolidated Fund over an eight-year period from 2013 to 2020.
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.
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. He likened the partnership to that of a car owner and a skilled driver, stating that ‘if the car owner (NLA) is satisfied with the performance of the driver (KGL), outsiders have no justification to interfere.’
Mr Opoku warned that any move to abruptly terminate or replace KGL could expose the state to judgment debts and jeopardize the sustainability of the lottery sector. He concluded by stating, ‘The NLA-KGL deal remains one of the most strategic and transparent partnerships in Ghana’s gaming industry.’