Accra, Ghana//-Good Governance Advocacy Group Ghana (GGAGG), a leading advocacy group in the country, has demanded the immediate cancellation of the illegal exclusive license granted to KGL by the National Lottery Authority (NLA) of Ghana.
The group also demanded the restoration of legal compliance with Act 722, particularly Sections 2(2), 5(1), and 15.
The Executive Director of GGAGG, Listowell Nana Kusi-Poku, made these demands at a press conference in Accra.
He again called for an independent forensic audit to audit all contracts, transactions, and liabilities between NLA and KGL.
Re-establish NLA as a sovereign state institution, free from private capture and political interference, Nana Kusi-Poku and his group were quick to add.
“Failure to take these corrective actions must lead to the immediate shutdown or dissolution of the NLA, as it no longer serves its lawful purpose nor the people of Ghana”, he stated.
So, we are calling on the current Acting Director-General of the NLA, Mohammed Abdul-Salam and the government to take urgent and public steps to end the KGL monopoly, restore the NLA. Or shut it down, Nana Kusi-Poku added.
Billions in Lost Revenue
The NLA of Ghana, which is the pioneering entity in the lottery and gaming industry and was established by the government with the vision to provide exciting opportunities for all Ghanaians, has massive untapped potential.
He told the journalists: “If the NLA is restored to its legal and transparent operation, it could generate at least GHS 6 billion annually in revenue for the government, deliver over GHS 3 billion in gross profit, and if properly optimised, earn up to GHS 12 billion in revenue, with as much as GHS 5 billion in profits annually for national development”.
These funds, according to Nana Kusi-Poku, could significantly boost the consolidated fund, helping finance critical sectors such as healthcare, education, infrastructure, youth employment, and many more.
Instead, a private monopoly now benefits from what should be national income, which is being enjoyed only by KGL, he said.
What Ghana Stands to Lose if these continue are billions in public revenue lost annually, collapse of legal and regulatory authority at NLA, undermining of fair competition and market access, violation of Act 722 and entrenchment of state capture, and erosion of public confidence in democratic governance, Nana Kusi-Poku mentioned.
How the KGL story began
KGL entered the lottery market before Kofi Osei-Ameyaw left office as the Director-General of the NLA, with a private product known as Lucky 3, which failed to succeed commercially.
Subsequently, KGL sought to sell the traditional 5/90 game and did so in violation of Act 722, to which KGL was issued a penalty, Nana Kusi-Poku noted.
Sammy Awuku’s tenure as Director-General of NLA, starting in August 2021 following the resignation of Kofi Osei-Ameyaw, was expected to mark a reform phase and restore stability to the NLA.
The Final Nail in the Coffin
Instead of reversing the decline, Sammy Awuku’s administration continued and even deepened some of the structural and policy issues that had plagued the NLA, further contributing to its ongoing collapse”.
Rather than engaging KGL lawfully through a transparent LMC framework, Sammy Awuku, in violation of Act 722 Ñ granted KGL exclusive rights to operate 5/90 in the digital space, he further stated.
“This is the beginning of the creation of the special purpose vehicle for state capture. This decision, made in 2021, was not driven by national interest but by political state capture and private enrichment, furthering Osei Ameyaw’s already existing troubles for NLA.
Since then, NLA has collapsed and ceased to function as an independent public regulator. The institution now borrows money from KGL to survive”.
Legal Violations: How KGL’s State Capture Agenda Contravenes Act 722
The current arrangement between NLA and KGL is not only unethical, it is illegal.
The GGAGG noted that Section 2(2) of Act 722 states clearly that “the Authority shall be the only body responsible for the conduct of the National Lotto.”
While Section 15 reinforces this, declaring that “the Authority is the sole institution authorised to issue coupons for the National Lotto and shall determine the number, type, and denomination of such coupons.”
Furthermore, Section 5(1) goes further to specify that only a Licensed Marketing Company (LMC) can sell coupons on behalf of NLA in return for a commission Ñ no other private entity has this right under the law.
Despite this, KGL Group has been granted exclusive rights to sell 5/90 lottery games digitally, a role that directly violates all three of the above provisions. KGL is neither the NLA nor an LMC under the law, yet it currently:
– Sells National Lotto products (specifically 5/90),
– Collect proceeds of NLA’s without pre-finance or logging such proceeds with NLA
– Pays a fine for contravention the law
This entire arrangement is illegal and amounts to a privatised takeover of a public mandate. It has not been sanctioned by any legislative reform, nor by a public competitive process.
The Beginning of NLA’s Collapse
From its inception up until 2017, the NLA consistently operated profitably and contributed to the state’s consolidated fund.
In 2006, the NLA ran lottery games only on Saturdays, but by 2017, it had expanded to operate seven days a week.
During this period, the NLA was known for promptly paying winnings to its stickers and commissions to its Lotto Marketing Companies (LMCs).
However, the Authority’s gradual decline began during the tenure of the New Patriotic Party (NPP), marked notably by the appointment of Kofi Osei-Ameyaw as Director-General.
The leadership of Kofi Osei-Ameyaw as Director-General of the NLA, spanning from 2017 to 2021, was widely regarded as a turning point that marked the beginning of a period of significant institutional decline.
While his appointment initially came with high expectations for reform, modernisation, and revenue growth, his administration was ultimately characterised by a series of controversial decisions, administrative lapses, and governance challenges that contributed to the erosion of the NLA’s operational efficiency, stakeholder trust, and financial stability.
Under Osei-Ameyaw’s leadership, the working relationship between the NLA and its core stakeholders— particularly LMCs, Technical Service Providers (TSPs), and internal staff—deteriorated significantly. Several LMCs also reported being unfairly treated, with some losing their licenses or contracts abruptly and without due process.
These actions caused widespread dissatisfaction among LMCs, many of whom play a crucial role in the marketing and distribution of NLA products. The breakdown in these relationships disrupted sales channels, reduced efficiency, and ultimately affected revenue generation.
Osei-Ameyaw’s administration also became known for entering into several controversial agreements with third-party vendors, particularly in the area of technology and digitisation, according to Nana Kusi-Poku.
“While modernisation was a key goal, many of these contracts were signed without adequate transparency or clear value justification. Some appeared to overlap with existing services or created unnecessary redundancies, leading to suspicions of mismanagement and favouritism”.
These deals placed further financial strain on the organisation and raised questions about procurement integrity and strategic planning.
The most damaging of all was the NLA’s growing inability to meet its financial obligations during this period. There were repeated delays in the payment of lottery winnings to stickers as well as commissions to LMCs.
These delays not only harmed public confidence but also disrupted the income of thousands of people who relied on timely payments from the NLA.
By the time Osei-Ameyaw left office in 2021, the NLA—once a thriving and reputable state-owned enterprise known for its contributions to the national coffers—was grappling with serious financial, operational, and reputational challenges.
All that happened under Osei Ameyaw was deliberate and was purposely meant to collapse the state-owned enterprise to pave the way for its capture by a private enterprise.
Reforms
In 2006, a major reform was undertaken to modernise and restructure lottery operations in Ghana. Parliament passed the National Lottery Authority Act, 2006 (Act 722), which replaced the DNL with the National Lottery Authority (NLA).
Under Section 2 of the reformed Act, National Lotto Act, 2006 (Act 722), “the core objective of the NLA is to raise revenue for national development through the regulation, supervision, and conduct of lottery and related games responsibly and transparently.” Sadly, the NLA has abandoned this legal and moral obligation.
The reform granted the NLA greater autonomy and a more commercially oriented mandate. The NLA was tasked not only with conducting national lotteries but also with regulating and supervising all lottery operations in the country.
Under the new reform, the NLA was established as a corporate entity with a Board of Directors and a Director-General, enjoying operational independence while remaining under the policy oversight of the Ministry of Finance.
Under Act 722, the NLA is mandated to work with licensed entities known as Lotto Marketing Companies (LMCs) for the resale of its products. The Act requires that LMCs pre-finance the purchase of lottery products from the NLA before reselling them.
Following this reform, the NLA recognised the need to leverage technology to enhance and automate its operations. To achieve this, it began seeking Technical Service Providers (TSPs) capable of deploying innovative digital solutions.
In 2008, the NLA engaged SIMNET Ghana Limited—its first Technical Service Provider. SIMNET, a company majority-owned by the Social Security and National Insurance Trust (SSNIT), was brought on board as part of a broader modernisation initiative. This partnership marked a significant shift from analogue lottery draws and sales processes to a centralised, digitised platform designed to streamline and improve operational efficiency.
In 2015, NLA added Lots Limited as a second Technical Service Provider to further enhance its digital operations.
With both SIMNET and LOTS actively supporting its modernisation agenda, the NLA significantly strengthened its technical capacity to drive and expand its lottery operations.
The NLA, which is under siege by what Nana Kusi-Poku called a criminal syndicate that was formed in the erstwhile Akufo-Addo-Bawumia-led government, with the sole aim of totally taking over the state-owned company through illegal means.
Instructively, NLA dates back to 1958, during the presidency of Dr. Kwame Nkrumah, Ghana’s first President. That year, the government established the Department of National Lotteries (DNL) under the Lotteries Act, 1958 (Act 37), with the primary objective of generating revenue for the state through a legal and regulated lottery system.
Operating under the Ministry of Finance, the DNL directed profits from lottery operations toward public sector development projects, including initiatives in education and healthcare.
