All Lotto Marketing Companies, Private Lotto Operators, collaborators and licensees risk losing their licenses completely or face suspension if they fail to comply with the approved 25% commission rate for retailers and agents, the National Lottery Authority (NLA) has warned.

The state lottery operator issued this warning in a formal notice dated May 18th, directing all operators to completely put a stop to overpaying the approved rate in the guise of incentives and bonuses.

It warned all concerned bodies to “immediately cease from paying any commission above the approved 25% commission rate. Submit any proposed incentive packages, bonuses, promotional schemes, or additional retailer compensation arrangements to the National Lottery Authority for prior review and written approval before implementation”.

According to the Authority, “any commission payment above the approved 25% is illegal.”

The NLA explained that the current 25% commission took effect in August 2024 after a review aimed at improving the sustainability of the lottery business.

It stressed that any additional payment linked to retailer compensation falls under its regulatory oversight.

It also warned that failure to comply could lead to sanctions, including suspension or revocation of operating licences.

“Strictly comply with all provisions of the National Lotto Act, 2006 (Act 722), and all directives issued by the National Lottery Authority. Failure to comply with these directives shall attract severe sanctions, including the suspension or revocation of the operating licenses of the offending LMCS, PLOS, Collaborators and Licensees,” the statement added.

About the National Lotto Act, 2006 (Act 722)

The Act establishes the National Lottery Authority (NLA), gives it exclusive rights to operate and regulate lotteries, and sets out licensing, commission rules, offences, and penalties, including suspension or revocation of licences for non‑compliance.

Section 4(1) states that no person or entity other than the Authority could operate any form of lottery. Sections 5 to 14 set out the licensing framework for Lotto Marketing Companies, covering applications, renewals and operational responsibilities, while Section 11 empowered the Authority to suspend or revoke licences where operators breached licensing conditions.

The Act further outlined rules governing lottery draws, prize payments and winnings under Sections 23 to 27, while creating offences related to fraud, manipulation and other unlawful practices. Section 28 established commission arrangements for lottery agents and retailers, and Sections 32 and 33 created the Lotto Account, with any deficits charged to the Consolidated Fund.

In addition, Sections 34 to 37 defined the structure, functions and governance of the NLA, including the establishment of its governing board. Section 53 empowered inspectors to enter premises and seize items relevant to investigations, while Section 55 authorised the Minister responsible for the sector to make regulations for the implementation of the Act.