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NLA cracks down on illegal lotto commission payments

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Mr. Mohammed Abdul-Salam is the Director General of the NLA.
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By Felix Cofie

The National Lottery Authority (NLA) has directed all Lotto Marketing Companies (LMCs), Private Lotto Operators (PLOs), licensees and collaborators to strictly comply with the approved lotto commission rate of 25 percent.

According to the Authority, it has observed that some operators within the lottery industry are paying commission rates above the approved threshold to retailers and agents under the guise of bonuses, incentives and promotional packages.

In a statement signed by Management, the NLA stressed that any commission payment above the approved 25 percent rate is illegal.

The Authority explained that under Section 28 of the National Lotto Act, 2006 (Act 722), the Governing Board of the NLA is mandated to determine the commission payable to Lotto Marketing Companies and retailers.

It noted that the current 25 percent commission took effect in August 2024 after a review aimed at improving the sustainability and attractiveness of Ghana’s lottery business.

The NLA acknowledged that some operators have defended the additional payments as incentives intended to motivate sales performance. However, the Authority emphasized that any payment linked directly or indirectly to retailer compensation falls under its regulatory oversight.

As part of the directive, all Lotto Marketing Companies have been ordered to immediately stop paying commissions above the approved rate.

The NLA further instructed operators to submit any proposed incentive packages, bonuses, promotional schemes or additional compensation arrangements to the Authority for prior review and written approval before implementation.

The statement also urged all stakeholders in the lottery sector to comply fully with the National Lotto Act, 2006 (Act 722), as well as directives issued by the Authority.

The NLA warned that failure to comply with the directives could result in severe sanctions, including the suspension or revocation of operating licenses.

According to the Authority, the move forms part of efforts to ensure fairness, transparency, discipline and sustainability within Ghana’s lottery industry.

The NLA also called on all operators, collaborators and licensees to cooperate in maintaining the integrity of the sector.

For more information, the public can visit the official website of the National Lottery Authority or contact its customer care lines.

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