The National Lottery Authority (NLA) has signed a GH¢55 million agreement with KGL Technology Limited for the year 2022.
This agreement gives KGL Technology Limited the license to operate NLA’s 5/90 online game as a collaborator for the year 2022.
In November 2019, NLA signed an agreement with KGL Technology Limited granting the latter a Provisional License Agreement to operate its 5/90 Game as an online lottery game on a pilot basis for two years.
As part of the agreement, KGL paid GH¢20 million to NLA in 2020 and paid GH¢25 million to NLA in 2021.
Thus, a substantive 10-year agreement, renewable every three years, was to begin in January 2022 between NLA and KGL.
With the new direction of management, under the leadership of its Director-General, Samuel Awuku and the Board of Directors chaired by Togbui Francis Albert Nyonyo, NLA has re-negotiated the deal to secure GH¢25 million more for the Authority.
This would bring the total amount to GH¢55 million for the year 2022. KGL will in addition to the GH¢55 million pay a licensing fee of GH¢1.7 million.
The breakdown for the total amount is as follows: GH¢50,000,000 will go into NLA’s coffers, GH¢3,000,000 million will go into a Stabilization Fund to cushion the Lotto Marketing Companies (LMCs) whose businesses have seen a downward turn recently while the remaining GH¢2,000,000 will go into the NLA’s Good Causes Foundation to support the Authority’s Corporate Social Responsibility projects.
The GH¢55,000,000 will be paid in quarterly instalments effective 31st January 2022. For the staff of NLA and the Authority’s other stakeholders, this new deal is a game-changer and will shore up the Authority’s revenue, which has declined in the last couple of years.
The agreement was finally signed after several weeks of tough negotiations between KGL and NLA.
The Board of Directors of NLA however commended KGL for their innovation over the last two years during the pilot stages and the robust ICT infrastructure put in place.
The Board Chairman of NLA, Togbui Francis Nyonyo at a brief signing ceremony, admonished KGL not to be complacent but work hard to justify the confidence reposed in them.
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