NLA increases lotto writers’ commission to 25%

The National Lottery Authority (NLA) has announced a significant increase in the commission paid to lotto writers in Ghana, raising it from 20% to 25%.
This adjustment, approved by the NLA Board, will take effect from the end of August 2024, according to Board Chairman Gary Nimako.
The Lotto Act, Act 722, grants the NLA Board the authority to determine commission rates for lotto writers.

25% commission since 1962
Historically, since the introduction of the lottery in Ghana in 1962, lotto writers received a 25% commission.

Writers demand 30% in 2011
However, around 2011, writers petitioned the NLA to increase the commission to 30%.
In response, the NLA conducted a global study on lottery commissions and found that the rates paid worldwide were lower than the 25% then being paid in Ghana.

Commission reduced 20% after global study
As a result, the commission was reduced to 20% to ensure lotto companies could cover winnings, operational expenses, and the commission.
The reduction was met with dissatisfaction among lotto writers, leading them to sue the NLA, though they ultimately lost the case.
Despite the directive, some private lotto companies continued to pay up to 30% illegally.

Directive to enforce 20% commission in 2022
In 2022, the NLA enforced the 20% commission across the board, which was strongly opposed by the Ghana Lotto Operators Association (GLOA), the Concerned Lotto Agents Association of Ghana (CLAAG), and the Private Lotto Writers Association (PLAW).
These groups argued that the 20% commission was insufficient to sustain their businesses and households, especially given the economic challenges, and called for an increase to 40%.

New commission is 25%
Mr. Nimako clarified that the new 25% commission applies only to lotto companies licensed by the NLA.

Intensified crackdown on illegal lotto
He also emphasized that the NLA would intensify its crackdown on illegal lotto operators, particularly as the 2024 election year approaches.
He warned illegal operators who seek protection from high-ranking party and government officials that the current Board and management would not yield to such interventions.

Losses in 2020 and 2021
The NLA has faced financial challenges in recent years, recording a loss of GH₵788,818 in 2020 and a more significant loss of GH₵17.1 million (GH₵17,148,582) in 2021.

Profit in 2022 and 2023
However, under the leadership of Mr Awuku, the NLA fully cleared GH₵17.1 million and managed a turnaround in 2022, posting a profit of GH₵2.5 million (GH₵2,563,980) and GH₵2.6 million (GH₵2,695,631.16).

Big rise in miscellaneous income
This recovery was largely attributed to a substantial increase in miscellaneous income, which rose from GH₵35.54 million in 2020 to GH₵133.45 million in 2023.
Mr. Awuku announced that a task force, including security personnel and Ghana Revenue Authority (GRA) officials, would be conducting operations against illegal lotto operators.

GH₵1.8bn annual lottery industry in Ghana
Despite the estimated GH₵1.8 billion yearly value of Ghana’s lotto industry, the NLA captures only about GH₵800 million, while illegal operators rake in over GH₵1 billion annually.

Estimated 700 illegal lotto companies
Mr. Awuku noted that of the estimated 700 illegal lotto companies, mostly in rural areas, only about 20 are registered with the NLA.
He also highlighted the significant role of illegal lotto operators as financiers of the two major political parties in Ghana.
He stressed the importance of keeping politics from interfering with the NLA’s revenue generation efforts and ensuring that rules are applied uniformly to all operators.
He recounted how political divisions within the NLA had previously led to staff frustrations, affecting productivity.
In addition, the NLA generates income from Nigeria and Ivory Coast, where the NLA’s draw results are used for their local lotteries, further demonstrating the authority’s regional influence.