The National Lottery Authority (NLA) has witnessed a significant transformation under the three-year tenure of its current Director General, Samuel Awuku.
When Mr. Awuku took over the reins, the NLA was in a dire financial situation, struggling with unpaid lottery winnings totaling over GH₵14 million and a debt burden of GH₵17.1 million.
Today, the Authority stands strong, posting a combined profit of GH₵5.2 million over the past two years.
Clearing debts and achieving profitability
Under Mr. Awuku’s direction, the NLA successfully cleared all outstanding debts and restored staff morale, setting the organization on a path of sustainable growth.
In 2020, the NLA recorded a loss of GH₵788,818, followed by a more significant loss of GH₵7.1 million in 2021.
However, by 2022, the NLA’s fortunes had shifted, posting a profit of GH₵2.5 million and continuing the positive trend in 2023 with a profit of GH₵2.6 million.
Strategic moves to boost revenue
A key factor in this financial recovery was the substantial increase in miscellaneous income, which surged by an impressive 263.45% from GH₵35.54 million in 2020 to GH₵133.45 million in 2023.
This remarkable growth was largely driven by revenue generated through collaborations, including the re-launch of the NLA’s Caritas Platform and the registration of key illegal operators as Private Lottery Operators (PLOs) through the issuance of licenses.
Enhancing staff morale and revenue streams
In addition to financial recovery, Mr. Awuku’s leadership focused on enhancing staff benefits and boosting morale. He introduced a stabilization fund for Lotto Marketing Companies (LMCs) to support retailers and instituted televised and community draws to improve the NLA’s public image and strengthen stakeholder relations.
Establishment of the LMC stabilization fund
Under Mr. Awuku’s guidance, the LMC Stabilization Fund has accrued GH₵9.9 million over three years, with GH₵3 million in 2022, GH₵3.3 million in 2023, and GH₵3.6 million in 2024.
Additionally, the NLA raised GH₵14.8 million for the Good Causes Charity, which has funded various philanthropic projects nationwide.
NLA increases lotto writers’ commission
In a significant move, the NLA recently announced an increase in the commission paid to lotto writers, raising it from 20% to 25% effective at the end of August 2024. This adjustment, approved by the NLA Board, aligns with the Lotto Act, Act 722, which grants the Board the authority to determine commission rates for lotto writers.
Addressing historical commission rates
Historically, lotto writers in Ghana received a 25% commission since the lottery’s inception in 1962. However, a global study by the NLA in 2011 led to a reduction of the commission to 20%, a decision that faced considerable opposition from lotto writers and various associations.
Despite legal challenges, the reduced rate was enforced in 2022, prompting renewed calls for an increase amid economic challenges.
Challenges with illegal lotto operations
One of the significant challenges facing the NLA is the proliferation of illegal lotto operators.
Despite the estimated GH₵1.8 billion annual value of Ghana’s lotto industry, the NLA captures only about GH₵800 million, with illegal operators raking in over GH₵1 billion.
Mr. Awuku has emphasized the role of these illegal operators as financiers of major political parties in Ghana and stressed the need to prevent political interference in the NLA’s revenue generation efforts.
Regional and global influence
The NLA’s influence extends beyond Ghana’s borders, generating income from Nigeria and Ivory Coast, where its draw results are used for local lotteries.
Under Mr. Awuku’s leadership, the NLA has achieved global recognition, including Level 2 Certification in Responsible Gaming and Observer Member Status in the European Lottery Association.
Awards and recognition
Mr. Awuku’s transformational leadership has not gone unnoticed.
He won the Overall Public Sector CEO of the Year consecutively in 2022 and 2023 and became the first Anglophone Vice-President of the African Lotteries Association (ALA).
His efforts to remodel the NLA Draw Studio and refurbish the Brennan Hall, along with purchasing new draw machines, have positioned the NLA as a profitable and respected organization both locally and globally.
