NLA: KGL Technology Limited deal won’t cripple us

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The National Lottery Authority (NLA) has stated that the contract between itself and KGL Technology Limited will never cripple the Authority financially, as claimed by some pundits.

It noted that the strategic partnership between both entities is rather a game-changer to the revenue mobilisation efforts of NLA.

Reacting to what it described as “manufactured lies and outright fabrications” by The Finder newspaper, NLA said it is of the view that the paper “is nurturing a mischievous agenda against the Authority and KGL following its consistent publications”.

“We would like to urge the Editor of Finder newspaper to seek credible information from NLA else he would continue to mislead the general public on the activities of NLA and KGL Technology Limited,” NLA said in a statement.

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Revenue sharing/generation

It disclosed that it is never true that the gross revenue sharing between NLA and KGL is 25 per cent and 75 per cent respectively, saying no such agreement exists between the two organisations.

The Authority further noted the cost of operating the online system, payment of winning tickets as well as commitment to the government and payment of fees to the telecommunication companies. It added that five per cent of KGL’s revenue will have to be spent on corporate social responsibility (CSR).

On revenue generation, it revealed that the NLA heavily depends on private companies to raise revenue for the government.

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Financial challenges

It attributed the financial woes of the Authority to some illegal activities such as live lotto draws of Alpha Lotto Limited on GTV, operations of 5/90 short code by Alpha Lotto Limited, high commission of 30-40 per cent paid by private lotto operators as against the 20 per cent standard commission for the lottery industry and the shortage of thermal paper rolls for the accredited lotto marketing companies of NLA.

“For the purpose of clarity, KGL Technology Limited and all other companies licensed by the NLA do not conduct their own independent parallel Lotto Draws, especially on television except Alpha Lotto Limited which is conducting illegal live Lotto Draws on GTV, and NLA is taking the necessary measures to deal with such illegal Lotto Draws,” it said.

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According to the NLA, it is putting measures in place to also protect and safeguard the business and investment of our over 10,000 lotto marketing companies, through whose efforts the Authority has been generating revenue for the government.

Sponsorships

Portions of the statement disclosed that KGL is in talks with the Minister of Tourism, Arts and Culture, Dr Ibrahim Awal Mohammed, to sign a GHC10 million sponsorship for tourism and traditional sites.

It added that, similarly, KGL is in dialogue with the Minister of Youth and Sports for the sponsorship of Black Stars AFCON 2022 and other sporting events.

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