KGL Group has signed a 10-year partnership agreement with the National Lotteries Authority (NLA) effective January 2022.
This agreement gives KGL Group the sole license to operate NLA’s 5/90 online game as a collaborator for a 10-year period.
In November 2019, through its technology and game innovations subsidiaries, KGL Technology and KEED respectively, KGL Group entered into an agreement with the NLA, granting a Provisional License to develop a digital solution to operate its 5/90 Game as an online lottery game on a pilot basis for two years.
Over this period, KGL Group’s singular investments towards infrastructure set up, building architecture to run digital lottery operations of NLA’s 5/90 Game, as well as sustained marketing efforts to build the 590 mobile consumer brand on *959# short code, web and mobile app has delivered an alternative convenient play channel for lottery consumers.
KGL has contributed significantly to the national economy through the consolidated fund and turned around the fortunes of the NLA with GH¢47 million paid directly to the NLA in the last two years of the pilot phase.
As a result of the positive impact the Group’s digital operations has had on the lottery ecosystem, a substantive 10-year Agreement, renewable every three years has been signed to begin in January 2022 between KGL Group and the NLA.
This agreement structure guarantees the NLA well over ¢1 billion in direct revenue over the ten-year period excluding corporate taxes and service provider income.
Annual breakdown of funds will see majority of amount go into NLA’s coffers, with a significant amount allocated into a Stabilization Fund to be managed by the Authority in support of the welfare needs of its Lotto Marketing Companies (LMCs), while the remaining will be contributed to NLA’s Good Causes Foundation to support the Authority’s Corporate Social Responsibility projects.
The Board of Directors of NLA commended KGL Group for their innovation over the last two years during the pilot stages and the robust ICT infrastructure put in place.
At a brief signing ceremony, the board Chairman of NLA, Togbui Francis Nyonyo admonished KGL not to be complacent but continue to work hard to justify the confidence reposed in them.
Executive Chairman of KGL Group, Alex Dadey hailed this agreement as a game-changer not only for the NLA, but for the Government and People of Ghana.
He added, “as an advocate of the Ghanaian ‘can do’ attitude, I have to applaud this partnership as it shows just what marvellous feats we can achieve as a collective when the private sector collaborates with the public sector”.
He thanked the NLA for the confidence reposed in KGL Group and hailed this as the next step to a significant change in the fortunes of the NLA and Ghana as a whole.
KGL Group has contributed significantly to revenue growth and capacity development across its operations in the lottery industry, collaborations with the Ministry of Youth and Sports, Ghana Football Association and social intervention programs under its CSR wing, the KGL Foundation.
The Group is set to continue its value creation drive across its ecosystem of strategic partners and envisages a total value in excess of ¢100 million to be committed annually under its operations.
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