KGL Technology Limited’s Contract Will Financially Boost NLA

The management of the National Lottery Authority (NLA) wants to place on record that KGL Technology Limited does not have 11 years contract with the Authority as published by The Finder newspaper on 16th April 2021.

In our estimation, the publication does not represent the true account of the contract between NLA and KGL Technology Limited.

Again, it is never true that the gross revenue sharing between NLA and KGL is 25% and 75% respectively. As a matter of fact, nothing of such agreement exists between NLA and KGL Technology Limited.

The publication fails to consider 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 such as MTN, Vodafone and AirtelTigo.

Although such publications had been done consistently, at this point the NLA management is declining to believe that the newspaper is nurturing a mischievous agenda against NLA and KGL.

The publication does not also recognize that 5% of KGL’s revenue will have to be spent on CSR.

Setting the records straight, the strategic partnership between KGL Technology Limited and NLA is a game-changer to the revenue mobilization efforts of NLA.

The contract of KGL can NEVER and would NEVER cripple the NLA financially as was reported.

The financial challenges that were encountered by NLA were largely due to the following:
1. Illegal live lotto draws of Alpha Lotto Limited on GTV.
2. Illegal operations of 5/90 Short Code by Alpha Lotto Limited.
3. Illegal high commission of 30-40% paid by Private Lotto Operators as against the 20% standard commission for the lottery industry.
3. 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.

The NLA online Lotto Marketing Company, KGL Technology Limited and all licensed companies of NLA except Alpha Lotto Limited depend on the Lotto Draws of the Authority in accordance with Act 722, Act 844 and L. I. 1948 to pay their respective wins.

The main purpose and existence of NLA is all about Lotto Draws and NLA can never surrender such functions to Alpha Lotto Limited or any other Private Lotto Operator/Agent or collaborator.

The National Lottery Authority and KGL Technology Limited partnership is anchored on the digitalization programme of the Government of Ghana.

We believe there is nothing that can change such a laudable project of the Government aimed at boosting the revenue of the National Lottery Authority.

Before the operation of *959# by KGL Technology Limited, the NLA was having an online platform and short code *890# that was managed by a private company known as TekStart Africa Limited.

An amount of 13millon dollars was invested in the *890# Short Code but sadly the platform was unavailable to yield profit to NLA, not even a penny.
At the appropriate time, investigations shall be conducted into the operations of TekStart Africa Limited and other similar companies.

Currently, the NLA has officially shut down the *890# Short Code due to the unprofitable nature of the *890# platform.

The *959# has proven beyond a reasonable doubt to be a very robust platform capable of helping the NLA to achieve its core mandate of revenue generation through indirect taxes.

Moving forward, the NLA 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.

It is important to state that the National Lottery Authority heavily depends on Private Companies to raise revenue for the Government. All the Lotto Marketing Companies who sell lotto products on behalf of NLA are Private Companies.

The Technical Service Providers such as Lots Services Ghana Limited, Simnet Ghana Limited and TekStart Africa Limited are Private Companies except Simnet which is co-owned by SSNIT.

The Government through the Ministry of Finance has taken pragmatic steps to fully restructure the National Lottery Authority.

Issued by: Public Relations Unit of NLA