KGL Technology defends record amid calls to review NLA contracts

KGL Technology Limited is Africa's leading Lotto Marketing Company (LMC). The company has responded strongly to recent media reports. These reports suggest suspending its partnership with the National Lottery Authority (NLA).

The claims come from the Financial and Business Services Employees Union (FBSEU). This union represents NLA staff and has petitioned the Attorney-General. They want all third-party contracts with Private Lotto Operators (PLOs) reviewed.

The Digital Public Policy Forum, a research body, issued a detailed response. They aim to correct what they call "misconceptions and false narratives." KGL Technology Limited is not a PLO but a licensed Online Lotto Marketing Company.

KGL operates under Sections 5 to 10 of the National Lotto Act, 2006. It also follows the Lottery Regulations, 2008. KGL works exclusively online and contributes over GH₵250 million annually to the NLA.

This contribution supports the Ghana Revenue Authority and the Consolidated Fund at no cost to the Authority. Ghana's digital lottery history began in 2006 with NLA's partnership with Simnet Ghana Limited. They introduced automated machines for ticketing.

Initial transitions faced resistance but were essential in reducing fraud. Despite several attempts, including failed platforms, NLA struggled with digital lottery services until KGL intervened in 2019.

KGL launched the *959# platform through a Public-Private Partnership. They paid a GH₵10 million penalty fee for pilot testing. After success, KGL received a provisional license that became a 10-year exclusive agreement.

This agreement allows KGL to cover all digital infrastructure costs without burdening the state. KGL is ISO/IEC 27001 certified and meets high security standards. The company does not conduct its own lottery draws; it relies on NLA's official results for payouts.

KGL consistently meets financial obligations and supports NLA through marketing sponsorships and infrastructure improvements like Brennan Hall. The Forum claims that 90% of NLA’s current revenue comes from KGL’s platform.

They emphasized that NLA’s business model has historically depended on private partnerships, including other LMCs and Technical Service Providers like Lots-Services Ghana Limited and Simnet Ghana Limited. These entities have collaborated with NLA for over 25 years.

Many PLOs licensed under Act 722 operate against legal frameworks requiring licensing under the Veterans Administration Ghana (VAG) Act, 2006 (Act 721). Thus, calls to suspend compliant operators like KGL are unjustified.

The Digital Public Policy Forum praised the KGL-NLA partnership for supporting Ghana’s digitalization agenda. This partnership reduces illegal lottery operations and minimizes social stigma around public staking.

They criticized attempts to discredit this partnership as politically motivated, recalling similar resistance during President Akufo-Addo's administration. “The NLA belongs to the people of Ghana,” they stated.

“Any entity delivering real value should be supported.” The Forum concluded that concerns about contractual breaches should go through legal channels instead of public campaigns or petitions that could harm successful partnerships.