A review of the 2019 and 2024 National Lottery Authority (NLA)–KGL contracts reveals a dramatic shift in revenue-sharing terms that cost the state an estimated GH¢496.8 million in 2024 alone, raising serious concerns about transparency, value for money, and regulatory oversight.
The documents, obtained and analysed, compare the original 2019 agreement governing KGL’s operation of the NLA’s 5/90 lottery online and via USSD in Ghana with the current 15-year contract signed in 2024. Two additional 10-year contracts for Nigeria and Côte d’Ivoire were not included in this analysis.
What the 2019 Contract Guaranteed the State
Under the 2019 NLA-KGL contract, KGL was required to pay the NLA 20% of its gross revenue from the 5/90 lottery.
According to KGL Group Chairman Alex Dadey, KGL earned GH¢3 billion in gross revenue in 2024. Based on the 2019 agreement, this would have translated into GH¢600 million paid directly to the NLA for that year alone.
In addition, Paragraph 6.0 (page 3) of the 2019 contract mandated that KGL pay GH¢15 million to integrate its online lottery platform with the NLA-owned online lottery monitoring system. This integration allowed the NLA to monitor, in real time, sales, prize payments, and pre- and post-draw transactions through the NLA Application Programme Interface (API), ensuring transparency and accountability.
Taken together, the NLA would have earned GH¢615 million in 2024 under the original contract.
Key Safeguards Removed in the 2024 Contract
The 2024 15-year contract fundamentally altered these arrangements — all to the detriment of the NLA.
Most significantly, the mandatory integration and real-time monitoring clause contained in Paragraph 6.0 of the 2019 agreement was completely removed. This change effectively disabled the NLA from independently verifying how much revenue KGL generates from online and USSD lottery operations.
Without access to real-time sales data, the regulator is now reliant on figures supplied by the operator it is meant to oversee.
Massive Revenue Loss in 2024
Under the new contract terms, KGL was expected to pay the NLA only GH¢118.2 million in 2024.
When compared to the GH¢615 million the NLA would have received under the 2019 agreement, the difference amounts to a staggering GH¢496.8 million loss in just one year.
This loss occurred despite unchanged market conditions and increased digitization of lottery operations, which typically lead to higher, not lower, revenues.
Revenue Formula Quietly Altered
Further scrutiny of the contracts shows that the revenue-sharing formula on page 4 of the 2019 agreement was completely restructured in the 2024 contract.
The earlier model clearly favoured the state by tying NLA earnings directly to gross revenue. The new structure significantly weakens that link, reducing state earnings while increasing the operator’s take.
KGL’s Prior Sanction Raises Red Flags
The documents also show that Paragraph 1.5 (page 2) of the 2019 contract records that KGL was fined GH¢10 million for illegally operating the NLA’s 5/90 lottery online before formal authorisation.
That a company previously sanctioned for illegal operations would later benefit from weaker oversight provisions and significantly reduced revenue obligations raises further questions about how and why the new contract terms were approved.
Bigger Questions for Accountability
The contrast between the two agreements points to more than just poor negotiation. It highlights a systemic erosion of safeguards, a weakening of regulatory visibility, and a transfer of value away from the Ghanaian state.
With the current contract running for 15 years, the cumulative losses could run into billions of cedis if the terms remain unchanged.
As public scrutiny intensifies, the key questions remain:
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Who approved the removal of real-time monitoring?
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Why was the revenue-sharing model revised against the state’s interest?
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And how many similar contracts quietly undermine public finances?
For now, the documents speak for themselves.
Source: The Fourth Estate
