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Thursday, February 6, 2025

Awuku Calls for Lottery Proceeds Management Reform

Samuel Awuku

 

The Member of Parliament (MP) for Akuapem North and former Director-General of the National Lottery Authority (NLA), Samuel Awuku, has called for a comprehensive reform in the management of lottery proceeds.

He pointed out some key issues related to the misuse of funds, the prevalence of illegal lottery operations, and the need for tax incentives.

Presenting a statement on the floor of Parliament on Thursday, February 6, 2025, Mr. Awuku proposed a detailed approach to optimize the benefits of lottery revenues for the nation.

“Rt. Honourable Speaker, as the immediate past Director General of the National Lottery Authority, I wish to bring to your attention the untapped potential of lottery proceeds in contributing to the development of our country,” Mr. Awuku stated.

He underscored the fact that while the NLA generates over 300 million cedis annually, these funds are often sent into the Consolidated Fund, losing their intended impact on targeted development programmes.

Drawing comparisons from successful global models, he cited the World Lottery Association’s contributions of over USD 91 billion in the fiscal year 2023 to support education, healthcare, and other social initiatives across the globe.
He further pointed to the United States, South Africa, and the UK, where lottery proceeds are directly channeled into public services, such as education, sports development, and healthcare programmes.

“Ghana, too, can reap similar rewards if we amend the National Lotto Act of 2006 to direct a percentage of the lottery’s revenue to specific sectors like health, education, and social welfare,” Mr. Awuku said.

He also called for the establishment of social intervention programmes aimed at improving the livelihoods of persons with disabilities, the elderly, and marginalized communities.

Mr. Awuku also took the opportunity to address the pressing issue of illegal lottery operations, which he claims account for 60% of the market in Ghana.

He proposed stricter penalties for illegal operators, including higher fines and longer jail terms, in addition to the forfeiture of assets acquired through unlawful activities.

“The current penalties under the National Lotto Act are insufficient. The illegal operators have deep pockets and can easily pay fines and return to their illicit activities,” he argued.

The MP recommended the implementation of tax incentives for licensed lottery operators to encourage growth and innovation within the sector.

He suggested that these incentives could help the NLA increase its annual revenue potential to over 600 million cedis by addressing inefficiencies and fostering a legal, transparent lottery market.

He called on the House to enact reforms that will allow lottery proceeds to better serve the public good, emphasizing that “with a more strategic use of these funds, we can enhance national development and improve the lives of Ghanaians.”

He urged Parliament to consider these measures as a crucial step toward ensuring that the lottery system in Ghana becomes a sustainable model for societal benefit.

By Ernest Kofi Adu, Parliament House

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