NCA demands telecoms give KGL lottery records to Ghana Lottery Authority
The National Communications Authority orders MTN, AirtelTigo and Vodafone to release all transaction data from KGL’s 5/90 lottery, including online and USSD payments.
Ghana.- Ghana’s National Communications Authority (NCA) has ordered all telecom companies to hand over complete records of KGL Technology Limited’s 5/90 lottery to the National Lottery Authority (NLA). The data includes transactions processed through online platforms and the *959# USSD code.
The NLA, which regulates all lottery operations in Ghana, has lacked access to detailed transaction data since 2019, when the NLA-KGL lottery deal first became operational.
The directive follows an investigation by The Fourth Estate, which prompted the NLA to write to KGL, the telecom companies, and the NCA prior to the directive to reconcile accounts that had been unavailable since 2019. The letters emphasised the need to collect all financial transactions processed through both online and USSD channels to ensure full transparency.
According to The Fourth Estate report, KGL has never conducted the weekly reconciliation of revenue mandated in its 2024 licence, leaving the NLA without complete oversight of lottery sales and payouts.
Mohammed Abdul-Salam, Director-General of the NLA, said: “The NCA’s letter is to reinforce the position that they needed to make that data available to us.”
The report added: “In an interview with the Group Chairman of KGL, Alex Apau Dadey, he confirmed to The Fourth Estate that the company’s 2024 revenue from the NLA’s 5/90 online lottery was over GHC3bn (€264m).”
Transparency and compliance in focus
Paragraph 17 of KGL’s Exclusive Licence outlines the company’s obligations, according to the report: “The parties shall conduct weekly reconciliations on transactions (pre- and post-draw, revenue, wins, prize and prize payments) during the term of this licence. For the avoidance of doubt, the reconciliation is to ensure that there are no discrepancies in the financial records of the NLA and the Licensee (KGL), pursuant to Section 51 of Act 722.”
The licence requires weekly reconciliation across all transaction channels, ensuring that the NLA can accurately verify lottery revenue, wins and payouts.
Ghanaian law makes it clear that only NLA can legally operate lotteries, highlighting why compliance and oversight are critical.
Section 4(1) of the National Lotto Act, 2006 (Act 722) states: “A person other than the National Lottery Authority shall not operate any form of lottery.” Section 4(2) states: “A person who contravenes subsection (1) commits an offence and is liable on summary conviction to a fine of not more than two thousand and five hundred penalty units or imprisonment for a term of not more than three years or both.”
KGL holds a 15-year exclusive licence to operate the NLA’s 5/90 lottery, making transparency and compliance particularly critical. The *959# USSD channel is a major revenue stream for the lottery, meaning the NLA has lacked the necessary transaction details to independently verify revenue since 2019.
With these obligations in mind, the NCA directive ensures that telecom companies provide full transaction records to the NLA, covering both online and USSD channels. This will allow the authority to reconcile accounts and oversee lottery operations accurately, as required by law.
