The National Lottery Authority (NLA) has seen a dramatic increase in revenue, with official figures showing that its partnership with KGL Technology Limited boosted digital earnings from GH¢20 million in 2020 to an impressive GH¢157 million in 2024.

This explosive growth, representing a 685% increase in just four years, underscores the most successful public-private partnership in the state gaming agency's history.

The deal, initially signed to digitize the popular 5/90 lottery, has effectively bailed out the NLA from its stagnant revenue cycle and set a new benchmark for its financial contributions to the state.

The journey began modestly. After years of struggling with failed online lottery attempts like "Mobi Games" and "Mobile 5/90, the NLA licensed KGL in 2020.

The initial contract was valued at GH¢20 million; however, through successive renegotiations based on performance; GH¢25m in 2021, GH¢50m in 2022, and GH¢96m in 2023, the partnership has proven to be a goldmine for the state.

A breakdown of the 2024 financials is even more telling. While KGL paid GH¢157 million directly to the NLA, its total operation generated GH¢3 billion in revenue from digital services.

From this, a massive GH¢2 billion was paid out to lucky winners, and GH¢87 million was paid in taxes to the Ghana Revenue Authority (GRA).

An NLA source familiar with the matter put the figures into stark perspective:

"For the NLA to realize GH¢157 million through its own traditional operations, it would have to sell a gross amount of GH¢950 million. The highest revenue the NLA ever generated on its own was GH¢ 402 million in 2017. This partnership isn't just an addition; it's a transformation."

The success story highlights a critical lesson: by leveraging private sector innovation and investment in technology, a state institution can unlock unprecedented value without bearing the associated costs and risks.

SP/EB

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