Razak Kojo Poku, the writer
First and foremost, I was extremely surprised to read an article from The Fourth Estate, shared by Sulemana Braimah, making some comparisons between:
1. The Telecom Business Model and the Lottery Business Model of NLA–KGL.
2. Dealers and Agents of scratch cards for Telecom companies and Lotto Marketing Companies for the National Lottery Authority (NLA).
Comparing the lottery business to the selling of scratch cards in exchange for commissions from Telecom companies clearly shows that Mr. Sulemana Braimah and The Fourth Estate lack full knowledge, understanding, experience, expertise, and competence when it comes to the lottery industry.
For the purpose of clarity, the Telecom Business Model has absolutely no correlation with the Lottery Business Model. In fact, both business models operate under different industries, and are regulated by different authorities.
The Telecom Business Model is regulated by the National Communications Authority (NCA), whereas the Lottery Business Model is regulated by the National Lottery Authority (NLA). The NCA’s laws and NLA’s laws are completely different from each other, so comparing them is quite dishonest.
Based on their assumptions, can The Fourth Estate and Sulemana Braimah give honest answers to the following questions:
1. Do the Telecom companies pay winning tickets to the customers of the scratch card dealers and agents on a daily basis?
2. Do the Telecom companies pay 25% commissions based on the money used by the dealers and agents to purchase the scratch cards?
3. Do the Telecom companies conduct “scratch card draws” for the customers of the scratch card dealers and agents?
4. Are the Telecom companies’ regulators the same as the National Lottery Authority (NLA)?
5. Did dealers and agents of scratch cards invest millions of dollars into the marketing of the cards?
6. Did dealers and agents of scratch cards invest millions of dollars into the IT infrastructure and system engineering for the sale of scratch cards to the general public with zero investment from the Telecom companies?
Providing honest and concrete answers to the above questions would help The Fourth Estate and Sulemana Braimah appreciate the fact that it was unfair to compare the scratch card business of Telecom companies to the lottery business under the NLA.
Now to the perfect case of the NLA–KGL deal:
1. The Fourth Estate and Sulemana Braimah should kindly take their time to thoroughly read all 58 sections of the National Lotto Act, 2006 (Act 722) and point out to their followers on Facebook which section of Act 722 specifically mentions NLA paying commission to a Lotto Marketing Company participating in online lottery. Can they indicate which specific section of Act 722 talks about online lottery?
2. Just like the Lotto Marketing Companies (LMCs) selling in kiosks using Point of Sale Terminals are required to prepay for NLA coupons, KGL Technology Limited, as an online LMC, also prepays each quarter for NLA coupons.
3. All the money NLA receives from KGL is paid into the Lotto Account as required by law. It is therefore the responsibility of NLA to transfer the net balance from the Lotto Account on a monthly basis to the Consolidated Fund.
The net balance is important because what if there is no balance after payments of winning tickets, commissions, administrative and general expenses by NLA?
If at any point the money in the Lotto Account is not enough to pay winners, the excess can be charged against the Consolidated Fund (Section 33 of Act 722).
However, in practice, NLA has never taken money from the Consolidated Fund to pay winners of national lotto. It also does not make sense to use public funds in the Consolidated Fund to pay lotto winners while the country needs funds for important national projects.
4. Despite the technology being used by KGL in partnership with the Telecom companies to sell lottery products, all the monies NLA receives from KGL go into the Lotto Account.
What is the Lotto Account? Let me educate The Fourth Estate and Sulemana Braimah. The Lotto Account is any official bank account operated by the National Lottery Authority (NLA).
5. What empirical research has The Fourth Estate or Sulemana Braimah conducted in the lottery industry, particularly the online lottery industry, for them to conclude that about 90% of lotto stakers now buy their lotto on their phones using short codes (USSD)?
If 90% of lotto stakers buy lotto via USSD, then how come banker-to-banker lotto operators and agents control 80% of the lottery industry in Ghana?
If 90% buy lotto via USSD, then how many buy lotto via Point of Sale Terminals (POSTs)?
And if only 10% are buying via POSTs, then how many are buying via paper issued by banker-to-banker lotto operators and agents?
If 90% are buying via USSD, then how come Lotto Marketing Companies and Private Lotto Operators are still actively involved in the business?
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6. Was NLA successful in experimenting with different technology partners to reap full benefits from online sales of its lotto business?
If The Fourth Estate and Sulemana Braimah care to know, before KGL came on board, the NLA, in partnership with private technology companies, failed to benefit from online sales of lotto such as “Mobi Game 2 Sure,” “Mobile 5/90,” “NLA 5/90 (*890#),” and “NLA Soccer Cash.”
Has The Fourth Estate, as a patriotic CSO, researched the financial losses NLA incurred during the operations of Mobi Game 2 Sure, Mobile 5/90, NLA 5/90 (*896#), and Soccer Cash?
7. Yes, Keed Ghana Limited paid GHC 10 million as a penalty to NLA for piloting 959# without the appropriate 5/90 Online License Agreement, and that was a good decision by both NLA and Keed Ghana Limited.
The general public would also like to know the answers from The Fourth Estate and Sulemana Braimah regarding the following:
(a) How much did Alpha Lotto Limited pay to NLA for illegally operating NLA 5/90 USSD and web online lottery via 896# for 11 months?
(b) How much has Onassis Lotto paid to NLA for illegally operating NLA 5/90 USSD and web online lottery via 859#?
(c) How much did operators of www.theb2blotto.com pay to NLA for operating illegally the NLA 5/90 lottery via web online?
The answers to the above three questions would illuminate The Fourth Estate’s understanding that they are being unprofessional in their investigations into the NLA–KGL deal.
The decision of NLA not to pay commission to KGL is supported by Section 2(4) and Section 37(d) of the National Lotto Act, 2006 (Act 722).
Respectfully, I sincerely do not think The Fourth Estate and Sulemana Braimah understand the lottery industry more than the Board Members of the NLA, both current and past.
8. KGL has every legal right to protect its huge investments in setting up a world-class IT infrastructure and system for the sustainability of the NLA 5/90 USSD and web online lottery.
Historically, no company was competing with the private companies operating “NLA Mobile 5/90,” “Mobi Game 2 Sure,” or “NLA Soccer Cash” when these products were active.
NLA has also never given multiple licenses to companies to operate the same NLA product. Every online LMC or collaborator is licensed to operate a specific lottery product.
For example:
959 exclusively for KGL 5/90
766 exclusively for Atena
787 exclusively for Wotiriyie
446 exclusively for Daywa 5/39
946 exclusively for Game Park
987 exclusively for Lucky 3
Regarding the duration of the license, NLA has signed 10–15-year license agreements with several Lotto Marketing Companies and Private Lotto Operators in 2024.
Do not forget that Lots Services Ghana Limited and Simnet Ghana respectively have 15-year and 10-year contracts with NLA, subject to automatic renewal for another 10–15 years.
