Public Education About National Lotto Act, 2006 (Act 722) & Lottery Regulations, 2008(L.I. 1948) of National Lottery Authority(NLA): Razak Kojo Opoku(PhD) Writes

Many people out of ignorance of the lottery industry have stated that NLA should rather operate NLA 5/90 USSD and Web online lottery instead of Third Party Companies and Collaborators.

They argue that the NLA is also the only body mandated to operate lottery under Section 4 of the National Lotto Act, 2006(Act 722).

Respectfully, I would like to use this Article to correct the misleading accounts, misinformation, disinformation, and misinterpretation of the Act 722 being championed by some media houses such us the Fourth Estate and Mr. Sulemana Briamah against the NLA-KGL license agreement because they think that NLA-KGL deal is not in the best interest of Ghana.

I will start by breaking down the practical implementation of Act 722 and the Lottery Regulations, 2008(L. I. 1948):

*Powers of NLA under Act 722 and L. I. 1948*

The National Lottery Authority(NLA) under National Lotto Act, 2006(Act 722) and Lottery Regulations, 2008(L. I. 1948) has six main powers. They include:
1. Operational Powers
2. Regulatory Powers
3. Supervisory Powers
4. Management Powers
5. Collaboration/Partnership/Joint Venture Powers
6. Powers of the Board of NLA

These aforementioned powers can be seen under:
1. Section 4(1) of Act 722 which states that, “A person other than the Authority shall not operate any form of lottery”.

2. Section 35(1) of Act 722 which states that, “The Authority shall regulate, supervise, and manage National Lotto and ensure the enforcement of the laws relating to National Lotto”.

*Operational Powers of NLA under Act 722 & L. I. 1948*

The operational powers of the National Lottery Authority(NLA) are captured under:
(a). Section 2(2) of Act 722 which states that, “the National Lottery Authority established under Part II(see Section 34 of Act 722) shall be the institution to conduct national lotto.

(b. Section 4(1) of Act 722 which states that, “A person other than the Authority shall not *operate* any form of lottery”.

To operate lottery in Ghana to the public is NOT the same as to sell lottery products to the public or to regulate and supervise lottery by NLA.

Section 2(2) and Section 4(1) of Act 722 are implemented by using:
(1). Section 3 of Act 722 (Time and place for conducting National Lotto).

(2). Section 23 of Act 722 (Draw of National Lotto).

(3). Section 24 of Act 722 (Supervision of draw).

(4). Regulation 1 of L.I. 1948 (Lottery Draw Committee).

(5). Regulation 21 of L. I. 1948 (Draw of national lottery).

(6). Regulation 22 of L. I. 1948 (Supervision by the Lottery Draw Committee).

Hence, the operational powers of the National Lottery Authority(NLA) under Act 722 and Lottery Regulations, 2008 (L. I. 1948) is strictly about the Conduct and Supervision of Lotto Draws, and it has absolutely nothing to do with the sale of lottery tickets or products.

I wish to state categorically that, the argument put forward by Sulemana Briamah and Fourth Estate using Section 4(1) of Act 722 (Prohibition of lottery) to draw a conclusion that NLA has the sole power to sell Lotto directly to the public using the USSD and Web online instead of KGL Technology Limited is absolutely FALSE and totally misleading to the Public.

To operate lotto under Act 722 and L. I. 1948 means “to conduct and supervise lotto draws”, and it is solely the responsibility of the National Lottery Authority (NLA) to conduct and supervise Lotto Draws in this country.

For the avoidance of any form of doubt, KGL Technology Limited has NOT breached the operational powers of NLA since the company has NEVER conducted or supervised its own Lotto Draws.

KGL Technology Limited ONLY uses the numbers drawn and supervised by the National Lottery Authority (NLA).

*Regulatory Powers of NLA under Act 722 and L. I. 1948*

The regulatory powers of the National Lottery Authority(NLA) involve:
1. Licensing of Lotto Marketing Companies and Collaborators.

2. Licensing of Private Lotto Operators using Veterans Administration Ghana(VAG), Act 844.

3. Ensuring Compliance and Enforcement of Act 722, L. I. 1948, and Section 22 of Act 844.

The regulatory powers of the National Lottery Authority(NLA) are implemented using:
1. Section 5 of Act 722 (Licensing of Lotto Marketing Companies).

2. Section 6 of Act 722 (Application for Lotto Marketing Companies).

3. Section 7 of Act 722 (Grant of license and license fee)

4. Section 8 of Act 722 (Requirements for Lotto Marketing Companies).

5. Section 9 of Act 722 (Duties of Lotto Marketing Companies.

6. Section 10 of Act 722 (Publication of Lotto Marketing License).

7. Section 11 of Act 722 (Suspension or revocation of license).

8. Section 12 of Act 722 (Renewal of license).

9. Section 13 of Act 722 (Non-transferability of license).

10. Section 14 of Act 722 (Offences in respect of a Lotto Marketing license).

11. Section 18 of Act 722 (Prohibition in relation to coupons).

12. Section 19 of Act 722 (Offences in relation to a coupon).

13. Section 20 of Act 722 (Participation in National lotto and purchase of coupons).

14. Section 27 of Act 722 (Offences in relation to National Lotto Draw).

15. Section 29 of Act 722 (Foreign lottery).

16. Section 30 of Act 722 (Repeated Offences).

17. Section 31 of Act 722 (Seizure and forfeiture of objects used for or relating to Offence).

18. Regulation 2 of L. I. 1948 (Licensing of Lotto Marketing Companies).

19. Regulation 3 of L. I. 1948 (Renewal of a license).

20. Regulation 5 of L. I. 1948 (Grounds for suspension or revocation of a license).

21. Regulation 12 of L. I. 1948 (Online lottery).

22. Regulation 17 of. L. I. 1948 (Offences relating to sale of coupons).

KGL Technology Limited was licensed to sell NLA 5/90 lottery products via USSD and Web online under the regulatory powers of the National Lottery Authority(NLA) especially based on: Sections 5, 6, 7, 8, 9, 10, 12, and 13 of Act 722, as well as Regulations 12 of L. I. 1948.

Therefore, any argument put forward by the Fourth Estate and Sulemana Briamah against the NLA-KGL license Agreement is completely BOGUS, and without any form of legal justification.

*Supervisory Powers of NLA under Act 722 and L. I. 1948*

The supervisory powers of the National Lottery Authority are implemented using:
1. Section 15 of Act 722 (Issue of Coupons).

2. Section 16 of Act 722 (Supply of coupons to Lotto Marketing Companies).

3. Section 17 of Act 722 (Validity of Coupons).

4. Section 21 of Act 722 (The duties of a participant in National lotto).

5. Section 22 of Act 722 (Acceptance of a stake).

6. Regulation 6 of L. I. 1948 (Prohibitions).

7. Regulation 7 of L. I. 1948 (Sale of lottery).

8. Regulation 10 of L. I. 1948 (Official closure of lottery game).

9. Regulation 18 of L. I. 1948 (Duties of staker).

10. Regulation 19 of L.I.1948 (Acceptance of stakes).

11. Regulation 20 of L. I. 1948 (Deposit of counterfoil books).

12. Regulation 26 of L. I. 1948 (Supply of identification numbers).

13. Regulation 27 of L. I. 1948 (Forfeiture of security).

14. Regulation 30 of L.I.1948 (Discontinuance of existing lottery and introduction of new lottery).

15. Regulation 31 of L.I.1948 (Suspension of lottery activity).

It is only the Board of the National Lottery Authority(NLA) that supervises the business activities of KGL Technology Limited, and appropriately reviews the existing agreements between the Authority and KGL Technology Limited.

Therefore, the allegations by Sulemana Briamah and Fourth Estate should be completely ignored.

Mr. Sulemana Briamah and the Fourth Estate have also FAILED to establish any form of corruption or suspected corruption regarding the NLA-KGL License Agreement.

*Management Powers of NLA under Act 722 and L. I. 1948*

According to Section 35(2) of the National Lotto Act, 2006(Act 722), “The Authority *SHALL NOT RETAIL* Lotto coupons to lotto stakers”.

Clearly, Section 35(2) of Act 722 completely defeats the arguments put forward by Sulemana Briamah and Fourth Estate regarding the NLA-KGL deal.

How would NLA manage the NLA 5/90 USSD and Web online lottery since Section 35(2) of Act 722 doesn’t give any power to NLA to retail lottery products to the staking public?

However, the management powers of the National Lottery Authority(NLA) are implemented using:
1. Section 25 of Act 722 (Winnings).

2. Section 26 of Act 722 (Prizes).

3. Section 28 of Act 722 (Commission).

4. Section 32 of Act 722 (Lotto Account).

5. Section 33 of Act 722 (Deficit in Lotto Account to be a charge on Consolidated Fund).

6. Regulation 4 of L. I. 1948 (Security deposit for license).

7. Regulation 8 of L. I. 1948 (Instant lottery and scratch lottery).

8. Regulation 9 of L. I. 1948 (Procedures for claim of instant prizes).

9. Regulation 11 of L. I. 1948 (Instant ticket validation requirements).

10. Regulation 32 of L. I. 1948 (Prize disbursement account).

*Collaboration/Partnership/Joint Venture Powers of NLA under Act 722 and L. I. 1948*

The National Lottery Authority(NLA) under:
1. Section 2(4) of Act 722 can operate any other game of chance or enter into collaboration, partnership or joint venture with any person, society, association, or corporate entity, to operate a game of chance in accordance with existing laws but losses from the game of chance, the collaboration, partnership or joint venture shall not be compensated for by the State or from the Lotto Account provided for under section 32.

Based on the provisions under Section 2(4), there is absolutely no basis for the brouhaha coming from Sulemana Briamah and Fourth Estate regarding the collaboration and partnership between NLA and KGL.

Also, if through this partnership, all the losses are on the head of KGL, why must we then create an impression that KGL benefits more than the State?

2. Regulation 12 of L. I. 1948 states that, “the Board may authorise the Director-General to select, operate, and contract for the operation of online lottery which shall be subject to some conditions as stated in the Lottery Regulations.

The NLA-KGL deal is strongly backed by Regulations 12, 13, and 14 of Lottery Regulations, 2008(L. I. 1948).

Based on the provisions captured under Regulations 12, 13 and 14 of L. I. 1948, the Fourth Estate and Sulemana Briamah have absolutely NO case against the NLA-KGL deal. This gives strong backing to the public perception that KGL was targeted by some faceless financiers of Sulemana Briamah and Fourth Estate.

*Powers of the Board of NLA under Act 722 and L. I. 1948*

The Board of National Lottery Authority(NLA) has been given the power to devise methods to help maximize the revenue generated by the Authority for the State(Section 37(d) of Act 722) in full alignment with Section 2(1) of Act 22 which states that, “National lotto shall be conducted for the purpose of raising revenue for the nation and for other purposes stated in this Act.”

The NLA-KGL deal is so far the best license agreement ever issued by the Board of the National Lottery Authority(NLA).

The record speaks for itself as compared to some licenses issued to other Lotto Marketing Companies, Private Lotto Operators, and Collaborators.

Absolutely, none of the license agreements issued by the National Lottery Authority(NLA) to private companies have been able to deliver massive financial resources to the NLA which is higher than what KGL has delivered to the NLA from 2019 up-to-date.

I would like to boldly state that, for the first time, Sulemana Briamah and the Fourth Estate have completely and totally gotten it WRONG with their investigation regarding NLA-KGL License Agreement.

The NLA-KGL deal is the best so far, and we all must encourage the partnership between these two entities with the patriotic aim of demanding more money for the State as the business of KGL Technology Limited keep expanding.

We should not tolerate or encourage unnecessary commentaries against the NLA-KGL license Agreement from Sulemana Briamah and Fourth Estate because it seems they are doing so out of ignorance or perhaps personal agenda borne out of bitterness, envy, and jealousy.

*Wrong Interpretation of Section 2(3) of Act 722 by Fourth Estate and Sulemana Briamah*

According to the Fourth Estate, money meant for the poor and mentally afflicted were given away to the rich, citing Section 2(3) of Act 722, which states that, “there shall be conducted as *part of the operation* of National Lotto, a *lottery with the object* of providing care and protection for the physically or mentally afflicted, needy, the aged, orphans and destitute children”.

Per Section 2(3) of Act 722, the NLA as part of its operation(*not full operations*) is supposed to introduce a lottery product with the specific objective of raising revenue to provide care and protection for the physically or mentally afflicted, the needy, the aged, orphans and destitute children. This does not mean that all revenues generated by NLA are meant for the physically or mentally afflicted, the needy, the aged, orphans and destitute children.

Since the enactment of Act 722, the NLA has NOT been able as part of its operations to conduct a lottery with the object of providing care and protection for the physically or mentally afflicted, the needy, the aged, orphans and destitute children as stated in Section 2(3) of Act 722.

The NLA 5/90 is NOT a lottery product conducted for the purposes of raising revenue to satisfy the provision of Section 2(3) of Act 722. If NLA want to satisfy the provisions of Section 2(3), the Authority has to conduct a new lottery with that specific objective but unfortunately the Authority has NOT been able to implement Section 2(3) of Act 722.

Therefore, it doesn’t make sense for Fourth Estate and Sulemana Briamah to LIE to the general public that NLA revenue is strictly for providing care and protection to the poor, physically or mentally afflicted, the needy, the aged, orphans and destitute children.

If Fourth Estate and Sulemana Briamah are honest and fair enough then they should do flyers to highlight ALL the beneficiaries of the NLA Good Causes Foundation and share such flyers with the Ghanaian people through their various social media platforms.

The decision of Sulemana Briamah and Fourth Estate to deliberately design flyers and write stories about selected few beneficiaries of NLA Good Causes Foundation, leaving out the rest of the beneficiaries amount to the highest level of unprofessionalism and unethical journalism.

It is very important to state that, revenues generated by NLA are meant for the Consolidated Fund as captured under Section 32(4) of Act 722, not strictly for the physically or mentally afflicted, the needy, the aged, orphans, and destitute children.

Also, National Lottery Authority(NLA) shall meet its operational and capital expenditure from the Lotto Fund as stated in Section 50 of Act 722.

Finally, the Facts and Data proves that, NLA has NEVER generated GHS 3 billion business in a single year in the absence of KGL License Agreement. It is therefore misleading to state that NLA has given away GHS 3 billion Business to KGL because KGL itself started operations from zero, it took huge investments, IT Infrastructure development, Systems Integration, and marketing to reach where they are now with absolutely ZERO investments and support from the National Lottery Authority(NLA).

The only thing NLA does for KGL is the issuance of License and conduct of Lotto Draws.

It is equally important for Fourth Estate and Sulemana Briamah to consider also, the 60-70% of the GHS 3 billion which goes into payment of winners of national lotto.

For instance, NLA used 8years from 2013-2020 to generate GHS 2, 766, 159, 507(GHS 2.7 billion) and out of this GHS 2.7 billion, the NLA used GHS 1, 378, 104, 374(GHS 1.3 billion) to pay Winners of National Lotto.

Also, out of that same GHS 2.7 billion, the NLA:
1. transferred GHS 182, 009, 000(GHS 180 million) to the Consolidated Fund, an amount which is far less than what KGL has paid to NLA even within a 2-year period of 2024-2025.

2. used GHS 553, 014, 988(over GHS 500 million) to pay commission to Lotto Marketing Companies.

The Lotto Marketing Companies earned more money than the Consolidated Fund and the NLA itself based on the existing revenue sharing agreement between Lotto Marketing Companies and the National Lottery Authority(NLA).

3. used GHS 153, 302, 459(over GHS 150 million) to pay fees to the Technical Service Providers such as Lots Services Ghana Limited and Simnet Ghana Limited.

For the purpose of education, it is well noted that:
(a). Lots Services Ghana Limited has 15 years contract with NLA subject to renewal for another 15 years after expiration.

(b). Simnet Ghana Limited has 10 years contract with NLA subject to renewal for another 10 years after expiration.

(c). NLA has also signed 10-15years license agreement with some Private Lotto Operators in 2024.

4. used the rest of the revenue for payment of GPRS Fees to Telecos, Suppliers of Thermal Paper Rolls, and Administrative & General Expenses of the Authority.

Asking for value for money should not mean that we should become mischievous, and diabolical in our demands for public accountability.

*Real Problems at the NLA*

The real problems at NLA that Fourth Estate and Sulemana Briamah should take an interest in if they are indeed serving the interest of the public and not their personal agenda are as follows:
1. illegal lottery operators and agents controlling about 80% of the lottery industry across the country who pays absolutely nothing to NLA and GRA.

Some of these illegal lottery operators have been in the industry for the past 30-40years without any records of payments to NLA and GRA.

2. Procurement contracts to some Technical Service Providers whereby they are freely enjoying 6% on every gross revenue generated by NLA via the Point of Sale Terminals.

3. Payment of 25% Commission to the Lotto Marketing Companies based on the gross revenue generated by NLA. This is very outrageous when compared to other countries operating lottery.

I am seriously surprised that, Sulemana Briamah and Fourth Estate are not interested in the aforementioned 3 real problems at the NLA but rather wasting their energy and time on KGL which is giving value to NLA and GRA concurrently.

Even if KGL cease running NLA 5/90 USSD and Web Online lottery right now, which section(s) of Act 722 and L. I. 1948 has stated that, NLA by itself can retail 5/90 lottery via USSD and Web online lottery? Absolutely none.

The NLA would still have to rely on another Lotto Marketing company to run the NLA 5/90 USSD and Web online lottery if KGL cease the running of the NLA 5/90 USSD and Web Online lottery.

So, where from this useless noise from Fourth Estate and Sulemana Briamah against NLA-KGL deal?