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10th June 2024 3:49:41 PM
2 mins readBy: Chris Kodo
The European Lotteries has voiced disapproval of government taxation on lottery winnings and imposition of fees on the gaming sector.
Phillipe Vlaemminck, Head of Legal at European Lotteries, speaking to the B&FT during a training program on responsible gaming organized by the National Lottery Authority (NLA) in Accra, remarked: “Lottery already has a positive impact on society in various ways, and thus it is crucial for some governments to reconsider imposing taxes on the industry”.
He contended that individuals desire to participate in the lottery without the burden of taxes on the modest sums they win.
Termed as a game of chance with societal benefits, Vlaemminck underscored that it is highly unnecessary for governments to tax lottery winnings, further adding: "That is the standard in many places such as the rest of Europe, the Americas and Asia which are tax free for winnings because the whole profit is given back to society”.
The Ghana Revenue Authority (GRA) presently imposes a 10 percent withholding tax on all lottery earnings as income from lottery activities, while they are also subjected to a tax rate of 20 percent on Gross Gaming Revenue (GGR).
Vlaemminck highlighted that when players incur losses, it is society that gains through developmental projects; and lottery merely provides a platform for individuals to fantasize, hence when they lose, society prevails.
However, he remarked that Ghana runs an exceptionally dynamic lottery system in Africa and promotes the National Lottery Authority (NLA) as a prominent gaming operator across the continent.
The European Lotteries observed that the NLA has demonstrated an increased dedication and curiosity in global developments within the industry, fostering knowledge exchange and positioning the Authority as a responsible gaming operator.
Addressing the gathering, Sammi Awuku, Director-General of NLA, stated that the program is instrumental in assisting the Authority in monitoring and combating illicit lottery practices within the system.
Mr. Awuku elucidated that the training, which includes certification, will enable lottery marketing firms and private lottery operators to comprehend the adverse effects of unlawful lottery operations on their own revenues and how they can aid the NLA in addressing the issue.
He affirmed the NLA's readiness to collaborate with the European Lotteries in any meaningful manner, including embracing the use of artificial intelligence and technology in the lottery sector.
During the training, sessions covered responsible gaming, combating illicit lottery operations, anti-money laundering, and the utilization of emerging technologies in gaming.
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