Home BUSINESS NLA, Lotto Operators Resolve Impasse

NLA, Lotto Operators Resolve Impasse

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Kofi Osei Ameyaw, DG of NLA and officials of GLOA

THE NATIONAL Lottery Authority (NLA) and the Ghana Lotto Operators
Association (GLOA) recently signed an agreement to promote the business of lottery,
by creating more employment for Ghanaians and increasing revenue to the state.

This was after two months of a series of meetings by representatives
of each of the parties.

The two parties have agreed to restore the PSOs who previously held
licences issued by the Veterans Association of Ghana (VAG) under new terms and
conditions with effect from January 1, 2020.  

A joint press release by the parties said, “Under the terms of this
contract, licensed PSOs will migrate from paper-writing to an I.T. platform for
effective monitoring, regulation, and more revenue mobilization to the state.”

Also, “The NLA, in place of its advertised Banker-to-Banker Lotto
operation under Act 722, for which fees were paid, has offered qualified PSO
the opportunity to participate in the 5/90 Fixed Odds Game, under the full
regulation and supervision of the NLA, in accordance with Section 2(4), to
ensure increased private sector lotto revenue to the state.”

By the recent agreement, they have resolved to “execute two (2)
separate contracts covering the qualified PSOs operation of the VAG Lotto under
Act 844,  and qualified PSO  participation in NLA 5/90 Fixed Odds
Game  in accordance with Section 2(4) of
Act 722.”

The parties have also planned a nationwide sensitization campaign in
January 2020 to educate the lotto public, the general public and all citizens
on the Lotto Laws of Ghana, duties and responsibilities in modern lotto
operations; and targeted training for sales agents and writers. This
sensitization will also help explain NPP government efforts in resolving this
30-year impasse on Private Sector Participation in Lotto, which has created
upheavals for all governments since 1992.

“To ensure smooth implementation of the roadmap towards the
successful adherence to the signed contracts, the Joint Technical Committee has
put in place Joint Dispute Resolution Mechanisms, to forestall unilateral
breaches, unfavourable media publicity or adverse actions that may create with
national security concerns.  NLA shall
provide a detailed compliance manual to guide the effective regulation of
Private Sector participation in Lotto.”

The two organisations have since extended gratitude to government
and the Police CID for assisting to bring ground-breaking reforms to the
lottery sector for greater employment generation, ensuring that the employment
rights of ordinary Ghanaian citizens are upheld at all times, and making it
possible for private sector participation in lotto to contribute significantly
to national development.

Background

In July 2018, VAG entered into a Collaboration Agreement with NLA to
operate VAG Lotto.  The PSOs were of the
view that execution of this Collaboration Agreement constituted an infringement
on their Agreement with VAG.   

In February 2018, the Board of NLA caused an advert to be placed in
some newspapers, including the two national daily newspapers, inviting Private
Sector Lotto Operators to apply to operate an NLA approved Banker-to-Banker
Lotto under Act 722.  Several PSOs
responded to the advert, paid the prescribed licensing fees and some submitted
the required Security Guarantees.

After a year of not receiving their licensing certificates from NLA,
this state of affairs incensed PSOs to organise a press conference in
Accra.  This press conference was seen as
a national security threat according to the National Security Apparatus, Police
CID and the government at large.   After
an invitation to the Bureau of National Investigations to give their statement,
the PSOs and NLA were subsequently invited to mediation at the Police CID
Headquarters in Accra in October 2019, to resolve the impasse.

The National Lotto Act, 2006 (Act 722) was enacted for the National
Lottery Authority (NLA) to operate and to regulate all Lottery in Ghana.  Section 2(4) of Act 722 gives NLA the mandate
to collaborate with other parties to operate lotto or lottery in Ghana.

GLOA is the umbrella organization championing the rights of Private
Sector Lotto Operators (PSOs) in Ghana.

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