Ghana’s national lottery plays an important role in the country’s economic and social development, with the establishment of a foundation to channel revenue earned from lottery activities into health care and education initiatives one example of the ways in which it has helped support domestic growth. A popular form of entertainment, the lottery industry has undergone significant transformations over the years to adapt to changing regulations, technological advancements and societal preferences.
Background & Oversight
The National Lottery Authority (NLA) has been a key player in Africa’s gaming landscape for more than six decades. The origin of the national lottery can be traced back to 1958 with the establishment of the Department of National Lotteries. A 1960 act then established the country’s first lottery to raise revenue for development projects, with the first 5/90 draw – when participants pick five numbers out of 90 – being held in September 1962. The department was reorganised as the NLA in 2006 by an act of Parliament, making it a public service institution with a legal monopoly over all such activities in the country. The NLA is tasked with regulating all lottery activities in Ghana, ensuring that they are transparent, fair and in adherence with the relevant laws.
One of the lottery’s primary objectives is to generate revenue for national development projects, as the funds generated by the lottery contribute to sectors such as education, health and infrastructure. This revenue stream has become increasingly important, especially in areas in which resources are limited. The lottery industry features a variety of games, ranging from draw-based lotteries to scratch cards. These games cater to a wide audience, offering different levels of engagement and prize structures. The introduction of technology has also played a pivotal role in shaping the industry, with online platforms providing convenience for players.
The NLA’s legal monopoly over the administration of lottery activities has made it an important contributor to government revenue and employment generation. The authority operates through a network of 15 branches, including 10 regional and five district offices across Ghana, and leverages a fully automated platform. The NLA also employs a proprietary solution – the Lotto Monitoring Enterprise Resource Planning Solution – that provides data in real time and increases operational transparency.
The NLA’s approach extends beyond its operational infrastructure, as it collaborates with a network of wholly owned Ghanaian third parties that operate games aside from the traditional 5/90 draw. This ecosystem not only diversifies the lottery landscape, but also generates further revenue for the NLA. With plans to deploy a dedicated data centre and expand into new markets, Ghana’s gaming space is leveraging digital opportunities and extending its influence to the rest of the region.
Corporate Social Responsibility
Although the NLA’s core mandate is to generate funds for national development, mobilising corporate social responsibility (CSR) initiatives – as well as policing illegal gaming operations and encouraging responsible gaming – has grown in importance. The NLA fulfils its commitments to social responsibility through the Good Causes Foundation, the authority’s philanthropic arm that it launched in October 2021.
The projects undertaken by the foundation underscore the NLA’s commitment to social development, as the revenue generated by lottery-related activities funds initiatives that support Ghana’s development. As the NLA continues to expand into new markets in the region and exploit digital opportunities, maintaining and augmenting its CSR efforts is likely to be critical to its growth trajectory.
The Good Causes Foundation is funded by profits from the Caritas lottery platform, which was relaunched in October 2021, as well as by collaborations with third-party organisations. The foundation is centred on four pillars: education, health, youth and sports development, and arts and culture. The vision of the Good Causes Foundation is to improve quality of life for Ghanaians and support vulnerable populations. In 2022 the NLA contributed over GHS10m ($910,000) to the government’s YouStart programme, which supports young entrepreneurs in their efforts to start their own businesses, with plans to contribute an additional GHS10m ($910,000) in 2023. This financial commitment demonstrates how institutional engagement in social welfare can complement national development, in this case by helping lower the youth unemployment rate.
Social Outreach
The results of the efforts that have been made by the Good Causes Foundation can be seen in the projects it has undertaken. In 2022 medical equipment was donated to the Tetteh Quarshie Memorial Hospital in the Eastern Region and HopeXchange Medical Centre in the Ashanti Region. The children’s and recovery wards were refurbished in Koforidua Central Hospital in the Eastern Region and Tema Polyclinic in Greater Accra, respectively , while in November 2022 borehole projects were commissioned in the Eastern Region to help provide a sustainable source of clean drinking water. Educational initiatives have included scholarships for students, refurbishments of primary schools and the establishment of an IT lab in partnership with local non-governmental organisation Ask Ghana. Furthermore, in June 2022 the NLA commissioned a police station with modern law enforcement facilities in Tutu in the Eastern Region.
Expanding CSR efforts is expected to be critical to the NLA’s growth trajectory, as the lottery is an important contributor to Ghana’s revenue base. To this end, in a December 2022 speech during an event commemorating the 60th anniversary of the NLA, President Nana Akufo-Adda insisted that the authority adhere to the World Lottery Association’s standards on CSR-related matters.
Amid the expansion to new markets in the region and the rapid digitalisation of the gaming segment, the NLA is positioning itself as an entity that not only prioritises CSR, but one that features it as part of its corporate culture and public image. This commitment is reflected not only in the NLA’s contributions to public finances, but also in the various projects it is undertaking across various business sectors, supporting the government’s development agenda. Balancing the economic benefits of the lottery with social responsibility goals is a challenge for both regulators and operators alike.
Future Growth
One of the key challenges that the national lottery faces is ensuring the integrity of games and maintaining public trust. Regulatory frameworks are in place to prevent fraud, manipulation and any form of malpractice. The NLA is working to enforce these regulations and conducting regular audits to ensure that lottery operators comply with guidelines. In recent years the industry has embraced innovation to stay relevant in a rapidly changing landscape. The use of digital platforms, mobile applications and online services has expanded the reach of the lottery, attracting a younger and more tech-savvy demographic. This shift toward digitalisation has not only increased accessibility, but has also enhanced the overall gaming experience for participants.
The national lottery has a significant position in the economic landscape, generating revenue to fund public projects. The industry has adapted to technological advancements, ensuring that games remain accessible and engaging for a broad part of society. Striking a balance between economic contributions and social responsibility will be crucial for the lottery’s continued success and sustainability.
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