Ghana Lottery Crisis: Staff Unions Demand Action

The National Lottery Authority (NLA) in Ghana faces a crisis as staff unions call for urgent government intervention to address alleged private capture of the state-run lottery business.

Key Takeaways:

• NLA staff union demands review of third-party agreements with Private Lotto Operators
• Revenue decline and job losses reported due to private sector involvement
• Union warns of potential industrial action if demands are not met

The Financial and Business Services Employees Union (FBSEU) of NLA has submitted a petition to the Attorney General and the new NLA Director General, highlighting concerns over the impact of third-party contracts on the state-run lottery. The union claims these agreements, particularly those granted to Private Lotto Operators (PLOs) over the past six years, violate the National Lotto Act and have led to significant financial and operational decline within the Authority.

According to the petition, the NLA has experienced a sharp drop in revenue generated through Point of Sale Terminals (POSTs) since PLOs entered the market. The union estimates a staggering loss of nearly 50% market share, translating to a revenue shortfall exceeding GH₵250 million between 2017 and 2024. This decline has reportedly resulted in substantial job losses among Lotto Marketing Companies (LMCs), traditionally the backbone of NLA's operations.

At the center of the controversy is KEED Ghana Limited (KGL), which operates the NLA's 5/90 games online. The union accuses KGL of operating in ways that contradict its supposed role as a Lotto Marketing Company, including keeping lottery proceeds in private accounts and paying winnings independently. Moreover, the union alleges that KGL was granted a 25-year exclusive license to run online lotto by the previous NLA Board, a move they argue undermines the Authority's independence and long-term viability.

Other companies named in the petition include Bluestar Lotto, Alpha Lotto, and Luma Technologies. The union claims these firms were misrepresented as technical service providers but were actually granted licenses to operate as PLOs, contributing to the neglect of NLA infrastructure and the marginalization of long-serving LMCs.

The FBSEU is calling for immediate action, including the suspension and review of all third-party agreements, and the reconstitution of the NLA's Governing Board with individuals possessing institutional memory and commitment to the Authority's core mandate. The union has warned of potential industrial action, including protests and a halt in lotto draws, if their demands are not addressed promptly.

This situation highlights the delicate balance between state-run lottery operations and private sector involvement, a challenge faced by lottery authorities worldwide. As the NLA grapples with these issues, the outcome could have significant implications for the future of Ghana's lottery industry and the livelihoods of those dependent on it.