The Ghana Lotto Operators Association (GLOA) has indicated that, the reliance on “banker-to-banker” tag as an excuse by NLA to maintain a monopoly in modern day Ghana is a deviation of private sector development agenda being pursued by the NPP Government.
For GLOA, the promulgation of the National Lotto Act, Act 722 (2006), has created a monopoly for lottery in Ghana, which now seems to defeat the NPP Government's agenda of expanding the economy of Ghana, hence it is in full support of the intention of the Director-General of the Ghana Lotteries Authority to create a new opportunity under a Public-Private Sector Partnership in lotto operations in the country.
According to GLOA, this will provide jobs to teeming unemployed Ghanaians at all districts, and increase revenues generated to the consolidated fund, indicating that the promises of the NPP were made in good faith, and it will be politically suicidal for these promises to be jettisoned now that NPP is in power.
In a press statement signed by Mr. Seth A. Amoani, Secretary to the Ghana Lotto Operators Association (GLOA), Public-Private Partnership (PPP), is a development tool used in developing economies for employment creation and national development, and that with an effective PPP, government can create the enabling environment and the regulatory regime to partner private sector organizations to undertake economic development activities to support gender promotion, employment generation and wealth creation.
The statement was to address issues from the recent discussions between the National Lottery Authority (NLA) And the Association regarding the creation of a Public–Private Partnership in Lottery.
In 1989, PNDC Law 223 was promulgated to allow private sector participation in lottery, to support development activities of District Assemblies in Ghana.
According to Seth A. Amoani, the private sector has proved itself a viable partner in national revenue mobilization activities under several governments until Act 722 was promulgated in 2006, creating a lottery monopoly in Ghana.
Seth A. Amoani however noted that, the PNDC Law 223 (1989) deregulated lottery in Ghana, occasioning massive improvement in the revenue and development activities of District Assemblies.
"...This further led to unprecedented national employment generation at all the districts in Ghana, due to private sector participation in Lotto. The results from the opportunity created under PNDC Law 223, compelled the restructuring of the then dying Department of National Lotteries (DNL) to become more responsive in its revenue generation efforts to the state. Private sector participation in lottery in Ghana, therefore, is not a recent development."
Meanwhile, breaking the current monopoly and establishing an independent regulator, has become an issue.
"This position is therefore otiose and untenable, for NLA to be a regulator, sole operator of lotto and government advisor on lottery activities in Ghana. This provision under Section 2(4) of Act 722 (2006), was crafted envisaging a fair inclusion of private sector operators and other multimedia partners; bringing in the desired innovation into the government’s objective to provide long-terms jobs; and build our cash-strapped districts into self-sustaining economies for industrial development," he stated.
According to GLOA, in the past NLA was holding onto the position of criminalizing the operations of private sector activities in lotto, and discredit them from any national discourse.
The Association also indicated that, for political expedience, there was the creation of courts to deal with lotto issues and a deliberate action was hatched to entrench state monopoly on lotto.
"The status of the NLA as a regulator and operator is not only untenable, but questionable. It was based on NPP’s misunderstanding of the unfair restrictions to be imposed on the private sector by Act 722 (2006) that compelled the party to promulgate the law in 2006. But learning from its past mistake, the NPP campaigned and actually made several public promises to regularize private participation in lotto, when returned to power," the statement said.
But in its own view, GLOA believes that, under this PPP, a truly independent regulator can ensure that both government operators and private sector operators comply with the uniform rules of supervision, and put in place structures for better revenue generation for the GRA, compliance with tax requirements, and massive employment generation.
GLOA believes that, the same electorate who voted for NPP based on the promise of building a Public Private system, and regularize private sector participation in lotto, stands to be justified for more votes in the next elections.
"...It is therefore inimical if the government decides to use the lotto courts against its better interests, when those who conceived it, shelved it when they realized its potential adverse impact on electoral outcomes. Only those opposed to district economic development under the “one district one factory”, and who do not wish the NPP to succeed, will find comfort in a lotto monopoly!"
"... Is it not surprising that, the same private lotto operators who were rejected by the creation of state monopoly on lottery in 2006, have been granted licenses to operate VAG Lotto under Act 844, due to their immense commercial experience and innovation in lotto operations?"
Mr. Amoani also stated in the statement that, if the private sector is credited for introducing innovation that increased lotto revenues to the consolidated fund, and compelled the restructuring of the Department of National Lottery, then there is no reason why the state monopoly should continue.
He stated that, government's policy on “one district one factory” will be cushioned to succeed if the districts are adequately resourced with streams of income from several partnerships including lotto, to address the after-effects of galamsey, through massive employment creation at the districts, saying that, "The scalability of employment at the districts is the only way to avoid social discontent, community and political agitations."
He however pointed out that, the NLA’s age-old problem is its failure to improve its marketing, the lack of strategies to compete thereby relying on police actions and courts, and the lack of adequate, practical, commercial knowledge to innovate; which he indicated, nearly collapsed Department of National Lotteries (DNL).
The Association in welcoming the idea of pursuing PPP in lottery, proposes that, the Ministry of Finance, GLOA and other stakeholders meet to discuss how to make private sector participation in lotto a reality under a public-private partnership arrangement with commitments for all parties.
"A separation of the regulatory function of NLA from its commercial/operational functions, and to ensure that NLA does not regulate and compete at the same time, with other private sector operators, and the appointment of a truly independent regulator for lottery in Ghana, and the restructuring of NLA’s lotto commercial operations under a different arrangement, for a transparent and impartial regulation with private sector operators."
It also called for the creation of modalities for the establishment of the Lotto Commission, the issuance of licenses to private operators nationwide, and the payment of appropriate registration fees, monthly GRA Taxes, VAT, P.A.Y.E, SSNIT and other charges to Government.
There should also be modalities for registering the agents of private lotto operators to ensure a take-off of district economic re-generation, GLOA stated, and called for effective collaboration with Ministry of Finance, the Lotto Commission and RAGC to conduct nationwide advocacy among its members to build the needed consensus and capacity, to streamline the operations of private sector lotto operators.
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