Thursday, 6th February, 2025
Hon Samuel Awuku
Akuapim North
Mr Speaker, this is a Statement on enhancing the lottery proceeds while addressing the challenges in Ghana’s lottery sector. I thank you for the opportunity to address this House on this matter.
As the immediate past Director General of the National Lottery Authority (NLA), I would like to bring to our attention the significant; yet, overlooked ways the Government can optimise the use of lottery proceeds, implement stricter measures against illegal lottery operations, and maximise revenue through innovative fiscal strategies, including tax incentives. This Statement is also to highlight the best practices around the world that I believe Ghana could also learn from.
Mr Speaker, NLA was established by the National Lotto Act, 2006 (Act 722) with the primary objective of conducting national lotto to raise revenue for the nation and other purposes stated in the Act. The NLA, today, generates revenue in excess of over GH₵300 million annually; however, proceeds and profits are expected to be funnelled into the Consolidated Fund. This contribution is often lost in the country’s general expenditure, limiting the impact these funds may have had on targeted development.
Mr Speaker, allow me to propose ways these funds can be utilised for the benefit of the State. According to the World Lottery Association (WLA), WLA members, lotteries, and betting operators contributed over US$91 billion to fund good causes in the fiscal year of 2023. Since 1999, member bodies have raised an estimated total of US$1.7 trillion for the public good. This contribution supports education, health, restoration of the environmental sector, children with special needs, and sports development. The European Lotteries also indicate that without their national lotteries, European societies, culture, and welfare would be €21 billion poorer.
Mr Speaker, examples of contributions of member countries include Spain and the Spainish National Organisation of the Blind (ONCE), which established the lottery in 1998. ONCE supports 71,000 jobs, that is 57 per cent of these people are persons with disabilities, and provides €230million annually in dedicated funding for social support for people with disabilities.
Mr Speaker, in Greece, the Greek Organisation of Football Prognostics S.A (OPAP) has renovated 64 per cent of the two largest children's hospitals, investing €12 million, and sharing smiles with 200,000 children. The project which was launched in 2014 is still ongoing.
Since its inception, Poland’s Totalizator Sportowy, that is their lottery form, has spent more than €2.8 billion on sports development and sports infrastructure, Since its inception, Poland’s Totalizator Sportowy, that is their lottery form, has spent more than €2.8 billion on sports development and sports infrastructure, while the Australia National Lottery has contributed €2 billion to sports in its 33-year history
History has it that the famous Great Wall of China, built to protect the Chinese states and empires from invasion by groups from the north, was primarily sponsored by lottery proceeds. I am sure the Hon Member of Parliament for Bosomtwe would agree with me that in California, United States of America (USA), 95 cents from every dollar spent on the lottery goes to funding public elementary, middle, and high schools to support classroom services and educational programs.
Mr Speaker, the United Kingdom (UK) National Lottery contributed over £80 million to support more than 1,300 athletes in preparation for the Rio 2016 Olympics. Their lottery also supports their National Health Service (NHS) and health charities, including mental health programmes.
In South Africa, a portion of lottery proceeds funds healthcare for underserved communities and supports HIV/AIDS programmes. At the same time, our next door neighbour, Ivory Coast, has a project supported by its lottery body, Loterie Nationale de Côte d’Ivoire (LONACI), in every community. In Ghana, under my tenure as Director General of NLA, we launched the Good Causes Foundation which has, over the past four years, touched over 2 million lives by supporting individuals, institutions, and communities in the areas of health, education, youth and sports development, and arts and culture.
Mr Speaker, given the lottery’ s essential contribution to society globally, I believe that if properly streamlined, we can do more with lottery proceeds in Ghana.
Therefore, I propose that the current National Lotto Act, 2006 (ACT 722) be amended with the guidance of the Ministry of Finance to allow lottery proceeds meant for the Consolidated Fund to be used to support specific projects in critical sectors like health, education, youth and sports development, and other areas as directed by this august House. Funds can also be directed toward social interventions for persons with disabilities, elderly citizens, and marginalised communities to improve livelihoods.
Mr Speaker, I also propose that part of the proceeds should be added to the District Assemblies Common Fund (DACF) to assist Hon Members of Parliament in developing their constituencies. It is essential to demystify the lottery by promoting it as not just a tool for entertainment, but also, as a significant source of national revenue. We can generate more revenue by implementing transparent processes, while educating the public on the social benefits of lottery proceeds. The European Lotteries captures it in simple terms, "A sustainable model for the benefit of society".
Mr Speaker, I cannot discuss the operational challenges facing the NLA without addressing the issue of responsible gaming. Lottery, though a source of revenue for the Government, can negatively impact the lives of people who become addicted to it, particularly minors who are most vulnerable. I am advocating for the establishment of social centres across our communities to help both the young and old deal with their anxieties, addictions, and social problems. I also urge the NLA and its third-party collaborators to establish advisory bureau centres in all their district and regional offices. This will be in line with the standards set by the WLA.
Illegal operations are arguably the bane of the lottery industry in Ghana. In 2022, $1.8 trillion was lost to illicit operations globally; Ghana is no exception. It is estimated that about 60 per cent of Ghana's lottery market is held by illegal lottery operators. The proliferation of unlicensed operations denies the state millions of revenues annually. Unfortunately, the National Lotto Act, 2006 (Act 722), section 4(2), limits an offender's penalties to a fine of not more than 2,500 penalty units or imprisonment for a term of not more than three years or both.
The trend in sentencing in Ghana especially in the area of illegal operations has been the imposition of fines which has not been deterrent enough because these illegal operators have deep pockets and can easily afford to pay the fines and return to their illegal operations. I therefore urge this House to consider amending the current National Lotto Act, 722 to impose stricter punishment including higher fines and longer jail terms as it is done in Ivory Coast and elsewhere. This would deter these illegal operators from also continuing with that journey.
Further, the assets acquired through unlawful lottery activities should be forfeited to the National Lottery Authority (NLA) for operational activities.
According to an article from the Worldfolio: “Governments realize that if you try to block gaming, people are going to play or gamble anyway with the high probability that they will play within unregulated or illegal sites, where the player is not protected,"... "The argument is: if you want to control online gambling, even land-based gambling, you need to regulate it well and only then will you manage to control and protect consumers and prevent organized crime and money laundering.”
Online Gaming is Malta's secondbiggest contributor to their GDP, with more than 12 percent of its annual income coming through online gaming services. I am confident that Ghana can make such gains if the illegal lottery space is appropriately controlled.
Mr Speaker, in terms of tax incentives many companies in Ghana receive tax incentives on terms that call for members of both sides of this House and the public to raise legitimate questions about these tax incentives. I am calling for a clear-cut policy to stimulate tangible growth in the lottery industry through tax incentives. These incentives will stimulate growth, improve efficiency in the lottery industry and encourage illegally operated companies to register with the NLA so that the State can take advantage of these benefits.
To an extent, this will help the NLA address the issue of illegal operators that have taken about 60 per cent of the lottery market in Ghana. Additionally, these measures will encourage compliance and discourage underreporting taxes. Should the issue of illegal operators and inefficiency be resolved, the NLA could rake in revenues of over six hundred million Ghana cedis (GH₵ 600,000,000) annually.
Mr Speaker, in conclusion, Ghana will benefit immensely if we reform the management of lottery proceeds, strengthen regulations against illegal operations, and implement strategic incentives for the sector. These measures will not only boost revenue but also ensure that the lottery proceeds serve their intended purpose — improving the lives of Ghanaians. Let us take this opportunity to enact the necessary reforms that will leave a lasting impact on our society.
Mr Speaker, thank you for the opportunity and your attention.
Hon Nana Agyei Baffour Awuah
Manhyia South
Mr Speaker, I am extremely grateful for this opportunity and I would like to commend Mr Samuel Awuku for this very insightful Statement.
Indeed, lottery is a received learning, a learning that we received from Malta, about 62 years ago when the then Finance Minister of this country visited that country and discovered the usefulness of lottery. He borrowed it for the purposes of implementation in this country.
Mr Speaker, historically, we have been apprised of the significance of lottery to even the budget of the Republic of Ghana and so I am not surprised that Mr Awuku is making such brilliant recommendations. Indeed, he deserves to be commended, not only for his demonstrated authority in the sector but also the fact that about two years ago, he celebrated 60 years of lotto in Ghana.
Mr Speaker, the challenges that he has enumerated are things that are worthy of focus by this House and also the Minister for Finance. Because of the historical usefulness of lotto and how important it has served to the budget of this country, not only in terms of the economic side of it, but also in terms of employment. That is why we need to address all the issues that he has raised.
Mr Speaker, in this Statement, he highlighted how external or foreign countries have resolved this problem. Given that lottery itself is a foreign learning, I do not think we should shy from borrowing these foreign experiences to resolve the challenges that are inherent in its practices in the Republic of Ghana.
Mr Speaker, where I would encourage us to give a very thoughtful consideration is the fact that we should be identifying sectors where the funds can be applied. However, in doing so, we have to consider whether or not there is a fiscal space for it; given that most of the revenues of this country are tied to sector specific.
Therefore, we need to commend the Hon Member for such an insightful Statement. Thank you very much.
Hon Emmanuel Kwaku Boam
Pru-East
Mr Speaker, I would want to comment briefly on the Statement made by the Hon Member.
It is such an intriguing one and I would like to seize this opportunity to tell my Colleagues and the House that if we look into this Statement, it would go a long way to help us bridge most of the financial gaps we have in the economy. I would want to focus on a few of the challenges he mentioned and I think it is something we need to critically look at.
Mr Speaker, it would interest one to know that, out of the many lottery operators, there are others who are operating without being registered and that is why the Hon Member spoke about illegal operators. These people happen to do the table top ones we call, “Bankerto-Banker”. It would also interest the House to know that most of the people who do this are unable to account to Government because it does not come through what we know to be the procedure or the normal way of accounting their revenue so once anybody who operates is registered and able to get an operating license, that would enable them to go digital.
So, most of the operators are using the Post of Sale (POS) device and it is easier to account for the proceeds one has, upon which one also pays taxes to Government.
Yesterday, we belaboured the point on using technology to solve the gap in generating revenue for the Government. This issue, as we spoke about yesterday, has also manifested today. The countries that have been successful in this did not go using lottery as the only means of doing that but they employed technology to make sure they increase revenue from operators.
As I said earlier, it would interest you to know that most of the people in the villages, areas where they think they are too far to be scouted and exposed, do not go through the normal use of this POS. As a House, this is something we should take upon ourselves to consider because lottery is another avenue to generate so much money for us. So, I would want to seize this opportunity to thank the Hon Member for having brought light to this issue.
I believe, as a House, we should take a closer look at it because it would help us increase the revenue base for Government. Mr Speaker, thank you very much.
Hon Kofi Amankwa-Manu
Atwima Kwanwoma
Mr Speaker, thank you for the opportunity to add my voice to the Statement made by the Hon Member for Akuapim North, Mr Samuel Awuku, who happened to be a former Director General of the National Lottery Authority (NLA).
Mr Speaker, listening to the maker of the Statement, it is obvious that if lottery is properly managed and targeted, this country would stand to benefit more than we are doing now. We live in a country where soccer is something that is dear to our hearts.
Almost every Ghanaian loves soccer. If you listen to his Statement, countries have applied millions of dollars to improve on soccer in their various countries. If we are able to do that by targeting revenue from lottery into soccer, I believe that we can improve our soccer and the Black Stars would make us happy. We can also create employment for the teeming youth.
As a former Deputy Minister for Defence, there were a number of times I went to see my Brother, Mr Samuel Awuku, to assist the Ghana Armed Forces (GAF). In fact, most of the times, they gave some assistance to the Veterans Association of Ghana (VAG). But how much was given to VAG was at the discretion of the Director General. If we are to streamline and know exactly how much is supposed to go where, I believe that that would go a long way to help us.
Mr Speaker, it is sad that we live in a country where, at the end of the day, as a Member of Parliament (MP), when I work and earn something, I pay taxes. However, in this country, betting taxes are introduced.
Yet, when people are made to pay taxes on the earnings for playing the game, it is seen as an offence. Sadly, those of us in this House have been able to politicise this issue. I think this would not augur well for the revenue we are looking for to develop our country. If people earn, they must learn to pay taxes on their earnings; it is very important. If we fail to do that, then how do we get the revenue from such earnings to develop our nation?
Also, he made mention of people who have deep pockets, so whenever they engage in illegalities in operating this lottery system, the only punishment that is meted out to them is just to pay a simple fine.
If I have a deep pocket and I am only fined, I can easily pay; then the next day, I would be back in business. We must have stricter punishment for such people, so that, in the long run, this country can make the money that we so need to develop our country. I believe that if we are able to do so, we would develop the country, create employment and Ghana would do better at the end of the day.
Mr Speaker, thank you very much for the opportunity to add my voice.
Hon Joseph Kwame Kumah
Kintampo North
Mr Speaker, thank you for the opportunity to give a bite to this Statement.
Mr Speaker, as much as we are talking about the revenue that we generate from lottery, people stake and they contribute income. So, if we are talking about taxing them from their earnings, would that not be double taxation? We are encouraging people to stake the lottery, and that is enough at that point to encourage them to stake.
But if we want to concentrate on taxing them from their earnings, we are just indirectly discouraging them from staking. This is where some of us think that, if a policy is being introduced that taxing lottery should be stopped, then we are rather helping and encouraging them to do more staking for the nation to have money.
Mr Speaker, as much as I am saying this, I side with him for the various support lottery gives to the various civil society organisations (CSOs), especially when we talk of the physically challenged receiving it as a source of income, support our various health facilities and other development. It is fair; it is a very good thing.
Mr Speaker, the maker of this Statement stated that, “NLA generates significant revenue, amounting to over 300 million cedis annually”. I am not to ask a question within this period because he is within the system. I do not know if all that money is usually paid into the Consolidated Fund Account before it is utilised, so that we can be sure of it in future. After this, I would like to meet him to confirm the figure that is normally paid into the Consolidated Fund Account.
I thank you for the opportunity.
Hon Frank Annoh-Dompreh
Nsawam/Adoagyiri
Mr Speaker, let me start off by commending the maker of the Statement, who was the Director General of the NLA some time back.
I am happy he has carried his experience on and is making very good recommendations on how we can rake in the necessary revenue to prosecute public business, and to move this country forward.
Mr Speaker, I, oftentimes, think we have not averted our minds to this opportunity, and people tend to be too religious about it. But it is a very good opportunity we can look at and be able to increase revenue from this area. I think, in this House, we have had occasions where such important Statements are read and we are unable to follow through to its logical conclusion.
I think this is an important Statement. We cannot just comment about it and let it go, particularly to the fact that it is going to help the country raise revenue through internally generated funds (IGF) to help the Government prosecute all the good things they have promised.
Mr Speaker, to that end, I would pray you to make some consequential directives relative to the Statement our Colleague made for us to pry further into it and appropriate it in a manner that can add on to the revenue that we could generate as a nation.
I, once again, want to commend Mr Awuku for the good Statement put out and to, again, pray you to ensure that we get to the bottom of it. I want to suggest if, pending the formation of our Committees—I used the word “pending” because I am choosing my words carefully.
Pending the formation of our Committees, if it finds favour with you, this may have to be looked at either by the Committee on Finance, the Budget Committee or any other Committee the Speaker deems appropriate. It is an important matter, especially when it goes to the core of issues of revenue generation.
Mr Speaker, revenue generation has been a problem for this country for a very long time, and it is often said that we overtax the formal sector. Experts have said that it is a lazy way of raising revenue to prosecute public agenda and public business. So, this might also be one of the opportunities that we can look at how we can increase our revenue.
Mr Speaker, I would humbly conclude and suggest that you make some directives so that we do not leave this Statement only with the commentaries but, that it would ultimately lead to something significant in terms of the revenue generation of this country.
I thank you, Mr Speaker, for recognising me.
Hon Rockson-Nelson Etse Kwami Dafeamekpor
South Dayi
Mr Speaker, thank you for the opportunity to make some comments in respect of the Statement ably made by Mr Samuel Awuku.
Indeed, in addition to the orthodox lottery system that we know, the online lottery system is fast catching up with the people who patronise it.
Mr Awuku was able to give some statistics to back the essence of making the Statement on the Floor and indeed, it is founded. We are a Government seeking to enlarge our sources of revenue and online business is a veritable one.
Indeed, if we take Kenya for instance, it is projected that this year, the online lottery system alone would give them about US$5million. In 2022, Tanzania got as much as TZS96 billion paid to the Government by the Gaming Board of Tanzania.
It is a remarkable source of revenue generation. This year, in Nigeria, it is projected that the online gaming industry will give them US$100.3 million.
So, in addition to the statistics that he and other Hon Colleagues have given, the indicators from Nigeria, Tanzania and Kenya clearly point to the fact that it is an area that we should pay attention to by way of revenue generation.
I agree with my Colleague, the Hon Minority Chief Whip that, maybe as a House, we should refer this to the appropriate Committee to look into it and advise the House in a report, so that when the agencies appear before us—in addition to exercising our oversight duty, you know that we also offer some performance enhancement indicators so, we can direct them to where they should look to.
Mr Speaker, with these words, I thank you for the opportunity to make my comments in support of the Statement made.
AskParly