Ghana’s Lottery Regulator Demands Full KGL Transaction Data
The National Communications Authority has instructed telecommunications companies to submit complete records of KGL Technology’s 5/90 lottery operations to the National Lottery Authority. This directive covers all transactions processed through digital platforms, including the *959# USSD code. The move aims to resolve a significant data gap that has persisted since the NLA-KGL partnership began in 2019.
Investigation Reveals Reconciliation Failures
This enforcement action follows an investigation by The Fourth Estate, which revealed substantial oversight issues. The report disclosed that KGL has never performed the mandatory weekly revenue reconciliations stipulated in its 2024 license. Consequently, the NLA has operated without complete visibility into lottery sales and financial payouts for years.
Mohammed Abdul-Salam, the NLA Director-General, confirmed the directive’s purpose. He stated that the NCA’s letter reinforces their position that the transaction data must be made available. The investigation also uncovered the financial scale of the operations. KGL Group Chairman Alex Apau Dadey confirmed the company’s 2024 revenue from the 5/90 online lottery exceeded $317 million.
Legal Framework and Compliance Demands
Ghana’s legal framework underscores the necessity of this action. The National Lotto Act explicitly designates the NLA as the sole legal operator of lotteries within the country. KGL operates under a 15-year exclusive license to manage the NLA’s 5/90 lottery, making regulatory compliance fundamental.
The company’s license agreement specifically mandates weekly reconciliation of all transactions across every channel. This process is designed to prevent discrepancies between the NLA’s records and the licensee’s financial data. However, the USSD channel, a major revenue source, has remained outside the NLA’s oversight since 2019. The provided transaction records will now enable the authority to conduct a comprehensive financial reconciliation as legally required.
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