Ghana lottery deal defended by CIBI amid GHS3bn controversy
CIBI responds to recent reports on the NLA licensing agreement with KGL Technology Limited, highlighting historical revenues and financial benefits.
Ghana.- The Chamber of Indigenous Business and Investors (CIBI) has defended the National Lottery Authority’s (NLA) 15-year licensing agreement with KGL Technology Limited (KGL) in Ghana, amid claims that the lottery deal undervalued the NLA operations.
Recent reports by two media outlets – The Fourth Estate and the Media Foundation for West Africa (MFWA) – scrutinised the NLA’s licensing agreement with KGL. The reports state that the NLA “gave away a GHS3bn (€204.7m) prime business to KGL Technology Limited in exchange for peanuts of GHS170m (€11.6m) annually”, raising concerns about the fairness and financial terms of the agreement. The report also noted that the 2024 contract was for 15 years, with an automatic renewal for another five years.
CIBI responded to the reports, emphasising that historical NLA operations never generated GHS3bn (€204.7m) annually. In a response published by ModernGhana, the organisation said: “Fourth Estate lied to the public about the annual revenue of a GHS3bn (€204.7m) business of NLA being given away to KGL based on the aforementioned data.”
CIBI cited NLA data, stating that the highest revenue prior to KGL’s involvement was GHS401.7m (€27.4m) in 2017, with total revenue from 2013 to 2020 amounting to GHS2.77bn (€188.8m), of which GHS1.38bn (€94.1m) went to prize pay-outs.
The controversy centres on KGL’s exclusive licence to operate the 5/90 lottery via USSD and web platforms, which allow players to stake and claim winnings digitally. Under the licensing agreement, KGL manages the lottery’s technical infrastructure, daily operations, marketing, prize payouts and assumes all operational risks.
KGL payments surpass NLA’s historical contributions
Regarding the financial contributions, CIBI said: “The annual payment of GHS170m (€11.6m) by KGL to the Consolidated Fund through NLA exceeds all individual payments made by NLA itself from 2013-2020, highlighting the financial benefits of the deal rather than any undervaluation. The amount of money paid by KGL to NLA from 2019-2024 exceeds the amount of money paid by NLA itself to the Consolidated Fund from 2013-2024 and this is the absolute fact.”
Previous attempts by the NLA and private operators to run the 5/90 lottery via USSD failed in 2008, 2015, and 2019–2020, highlighting the need for a technically capable operator like KGL. The company has consistently met its obligations, including quarterly payments to the NLA and taxes to the Ghana Revenue Authority, while ensuring prompt prize payouts to players, according to CIBI.
The dispute highlights ongoing debates over lottery licensing, digital gambling operations and revenue management in Ghana. While recent reports raised concerns about fairness, CIBI maintains that the deal strengthens the lottery system, protects players and delivers consistent revenue to the state.
