By News Desk
Public debate surrounding Ghana’s lottery industry has intensified following questions over discrepancies between figures presented in an investigative report published by a local media outlet and more recent projections of revenue from the National Lottery Authority (NLA) and its private-sector collaborators, including KGL Technology Limited.
Questions have emerged over a September 2025 report by the media outlet, which alleged that the NLA had given away a prime business opportunity valued at GH¢3 billion to KGL in exchange for an annual payment of GH¢170 million.
The renewed debate follows a subsequent report indicating that the NLA stands to benefit approximately GH¢2 billion from all licensed Private Lotto Operators (PLOs) combined, including KGL.
Industry watchers, legal experts and civil society groups are now questioning the source and basis of the GH¢3 billion valuation originally presented to the Ghanaian public.
The GH¢3bn Valuation and Historical Revenue Figures
In September 2025, a local media outlet published an investigative report alleging that the state had lost billions of cedis through its business arrangement with KGL Technology Limited.
However, historical financial data attributed to the NLA have been cited by critics to challenge the basis of the GH¢3 billion valuation.
The figures indicate that between 2013 and 2020, the NLA generated approximately GH¢2.76 billion in total revenue over the eight-year period.
During the same period, the Authority reportedly transferred a cumulative amount of GH¢182 million into the Consolidated Fund.
These figures have prompted questions about how the business arrangement involving KGL was valued at GH¢3 billion, given that the entire state lottery sector reportedly generated approximately GH¢2.76 billion over eight years.
Reacting to the controversy in late 2025, Executive Director of the Chamber of Indigenous Business and Investors (CIBI), Alistair Nelson, criticised what he described as a mathematical flaw in the investigative report.
He said:
“It is extremely misleading and factually inaccurate for anyone to claim the NLA handed over a GH¢3 billion business to KGL. The NLA’s entire historical revenue over eight years combined didn’t even reach 3 billion Cedis. To suggest KGL received a single-year business of that volume for ‘peanuts’ was a complete fabrication that ignored prize payouts, operational costs, and actual historical yields.”
Mr Nelson argued that any assessment of the NLA-KGL arrangement should take into consideration the historical revenue performance of the lottery industry, prize payments and the operational costs associated with running lottery operations.
From GH¢3bn ‘Giveaway’ Allegation to GH¢2bn Industry Projection
In October 2026, updated reports indicated that the projected revenue across the entire lottery industry, comprising 29 registered private lotto operators and other collaborators, including KGL, Game Park, Zeta Technologies and Alpha Lotto, stood at approximately GH¢2 billion.
Within this market, financial records for the preceding fiscal year reportedly show that KGL Technology Limited alone contributed more than GH¢173 million to the NLA, while the other 29 private operators collectively contributed approximately GH¢44.9 million.
The figures have reignited debate over the earlier GH¢3 billion valuation attributed to KGL, particularly as the latest industry projection places the combined market at approximately GH¢2 billion.
Industry analyst and financial commentator Kwaku Mensah questioned the apparent disparity between the two sets of figures.
He said:
“If today the realistic projection for the entire industry, including KGL and nearly thirty other operators, is placed around 2 billion Ghana Cedis, then where on earth did a media outlet extract the 3 billion Cedi figure for KGL alone back in 2025? The numbers simply do not add up. It points to either a fundamental misunderstanding of gross turnover versus net revenue or deliberate sensationalism.”
Mr Mensah suggested that the discrepancy could stem from a misunderstanding of the distinction between gross turnover and net revenue or from the presentation of financial figures without sufficient context.
He called for the figures to be reconciled to enable the public to better understand the actual financial value of the NLA-KGL arrangement.
Gross Wagers Versus Net Revenue
A senior executive familiar with the NLA’s regulatory operations, who spoke on condition of anonymity, also provided further insight into the financial structure of lottery operations.
The executive explained that gross wagers should not be confused with net profit, noting that a substantial proportion of money generated from lottery ticket sales goes towards paying winning tickets and prizes.
According to the source, other operational expenses include taxes, technical infrastructure, USSD session fees and vendor commissions.
The executive said:
“Gross wagers are not net profit. When people play the lottery, up to 50% or more goes straight into paying winning tickets and prizes. Another chunk covers taxes, technical infrastructure, USSD session fees, and vendor commissions. Conflating total gross ticket sales with net state revenue shows a lack of financial literacy. KGL’s payment of over 170 million annually to the state represented a far higher yield than what the state achieved when it managed the operations alone.”
The executive maintained that comparing gross ticket sales with the actual revenue transferred to the state without accounting for operational expenses and prize payments could create a misleading picture of the industry’s financial performance.
The source further argued that KGL’s reported annual contribution of more than GH¢170 million represented a higher return to the state than the revenue generated when the relevant operations were managed directly by the NLA.
Calls for Journalistic Accountability
The latest figures have renewed calls for greater scrutiny of financial claims involving public institutions and private-sector business arrangements.
Stakeholders are urging media organisations to uphold rigorous standards of financial verification and ensure that figures presented in investigative reports are properly contextualised, particularly when such publications could influence public confidence in public-private partnerships.
A civil society representative in Accra said the publication of financial figures without adequate consideration of operational realities could mislead the public and undermine confidence in legitimate business arrangements.
The representative said:
“When a media outlet presents sensational figures like GH¢3 billion without factoring in operational realities, it misleads the public and damages legitimate business agreements. Today’s narrative completely undermines yesterday’s claims.”
The representative argued that the apparent differences between the GH¢3 billion valuation reported in 2025 and the latest GH¢2 billion industry projection raised important questions that required clarification.
The controversy has therefore brought renewed attention to the need for transparency in the NLA’s dealings with private operators, including the disclosure of relevant contractual terms, revenue-sharing arrangements and independently verified financial records.
Ultimately, establishing the actual value of the NLA-KGL arrangement will require a clear breakdown of gross lottery turnover, prize payments, operational costs and net revenue accruing to the state.
Such disclosures would provide the public with a more comprehensive basis for assessing the financial performance of Ghana’s lottery industry and determining whether the arrangement delivers value for money.
