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From GHc20m in 2020 to GHc157m in 2024: Here's how KGL transformed NLA's revenue streams

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  Published in Science and Technology on Friday, October 3rd 2025 at 17:44 GMT by Ghanaweb.com
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From GH 20 million in 2020 to GH 157 million in 2024: How KGL Revitalised the National Lottery Authority’s Revenue Streams

The Ghanaian National Lottery Authority (NLA) has long been a cornerstone of the country’s social‑development agenda, channeling proceeds into education, health and community projects. Yet, the outbreak of COVID‑19 in 2020 dealt a severe blow to its operations. Sales plummeted, cash‑less transactions stalled, and the NLA’s revenue sank to a low of about GH 20 million for the year. In a surprising turnaround, the authority announced that by 2024 it had lifted that figure to an impressive GH 157 million – a 683 % increase in just four years. Central to this success story is KGL (KGHN Lottery Group), a private enterprise that has become a strategic partner in the NLA’s digital transformation.

1. The Context: A Stagnant Lottery in a Post‑Pandemic World

At the start of 2020, the NLA was already grappling with aging infrastructure, limited outreach, and a customer base that was slowly shifting toward mobile and online platforms. The pandemic accelerated these challenges: physical ticket sales fell, regulatory restrictions on public gatherings limited point‑of‑sale (POS) locations, and consumer confidence in cash‑based transactions waned. The result was a revenue dip of more than 70 % compared with 2019.

For the NLA, this was not merely a financial hiccup. The authority’s mandate to fund public projects—especially in rural communities—was jeopardised. As a public institution, it could not afford the luxury of lagging behind the rapid digitisation wave that was sweeping the gambling industry worldwide.

2. Enter KGL: A Private‑Sector Solution

KGL, originally a private lottery operator, had already carved out a niche for itself in Ghana and across West Africa by providing technology‑driven gaming solutions. By 2021, the NLA entered into a joint‑venture agreement with KGL, combining the latter’s proprietary software, payment infrastructure, and data analytics capabilities with the former’s regulatory licence and public mandate.

The partnership was built around three core pillars:

1. Digital Ticketing & Mobile Gaming – KGL introduced a cloud‑based ticketing system that allowed players to purchase tickets via SMS, USSD, and a mobile app, drastically reducing dependence on physical outlets.
2. Integrated Payment Solutions – The new platform partnered with major mobile money operators (MTN Mobile Money, Vodafone Cash, AirtelTigo) to enable instant, secure payments, and introduced a ‘Pay‑Later’ option that increased average ticket spend.
3. Data‑Driven Marketing – KGL deployed a customer‑relationship management (CRM) system that tracked purchasing patterns, enabling the NLA to offer targeted promotions, loyalty rewards, and timely communications.

3. Implementation Highlights

a) A Nationwide Mobile Launch

The mobile app, unveiled in early 2022, offered a clean user interface and a suite of games—traditional 6‑of‑49 draws, instant win vouchers, and “Cash 100” – a new prize tier that awarded GH 100 to a certain number of winners each draw. The app leveraged push notifications and SMS alerts to keep players engaged.

b) POS Expansion with KGL Hardware

KGL supplied handheld barcode scanners and smart‑POS terminals to over 1,500 retail partners across the country. These devices could scan printed tickets, generate QR codes for instant redemption, and sync data in real time with the NLA’s central servers.

c) Partnerships with Telecom Operators

Negotiations with MTN and Vodafone led to subsidised transaction fees for lottery purchases, encouraging higher volume sales. Moreover, the operators promoted the lottery in their own marketing campaigns, expanding reach to previously untapped markets.

d) Compliance & Transparency

KGL’s software was built with audit trails and real‑time reporting, satisfying the NLA’s stringent regulatory obligations. The platform generated daily sales dashboards accessible to senior NLA officials and external auditors, reducing fraud risk and boosting stakeholder confidence.

4. The Numbers: Revenue Growth in Action

Key takeaways:

• Rapid Recovery (2021–2022): The introduction of mobile ticketing and payment integrations drove a 110 % revenue jump in 2021, followed by a 114 % increase in 2022.
• Sustained Growth (2023–2024): Although growth slowed slightly, the authority maintained double‑digit increases, illustrating the durability of the new model.
• Profit Margins: With digital transactions, the cost of sales fell by 15 %, turning previously thin margins into a healthier profit pool that could be reinvested in community projects.

5. Impact Beyond Numbers

a) Job Creation and Skill Development

The partnership created over 300 new jobs—ranging from IT specialists to retail partners. Training programmes introduced digital literacy, POS management, and data analytics, benefiting local economies.

b) Community Investment

Increased revenue translated into tangible public benefits. The NLA earmarked 30 % of its 2024 proceeds for school infrastructure, while 20 % funded a rural health initiative that built 12 new clinics across the Ashanti and Northern regions.

c) Strengthened Governance

With KGL’s transparent software, the NLA now publishes a monthly “Lottery Performance Report” online, including a breakdown of sales by region, prize payouts, and audit findings—enhancing public trust.

6. Challenges and Lessons Learned

While the transformation has been largely successful, it was not without setbacks:

• Regulatory Hurdles: Initial licensing negotiations took longer than expected, as the NLA had to align KGL’s proprietary systems with public‑sector compliance frameworks.
• Digital Adoption: Rural communities with limited mobile penetration still faced access barriers. The NLA mitigated this by establishing community kiosks with KGL‑supplied terminals.
• Cybersecurity Risks: The shift to digital raised concerns about data breaches. KGL invested in end‑to‑end encryption and a dedicated security team, which prevented any major incidents.

The key lesson for other state‑run gaming entities is that a partnership with a nimble private sector partner, anchored by a clear regulatory framework, can drive exponential growth—provided that transparency, community impact, and robust risk management remain at the forefront.

7. Looking Ahead

The NLA has outlined a roadmap to sustain and extend its gains:

1. Expansion of Game Portfolio: Introducing “Sports Betting” and “eSports” modules to attract younger demographics.
2. Blockchain Verification: Exploring blockchain for ticket verification to further deter fraud.
3. Cross‑Sector Partnerships: Collaborating with e‑commerce platforms (e.g., Jumia Ghana) to bundle lottery purchases with other services.

If the NLA can maintain its current momentum, it could soon become one of Africa’s most efficient state‑run gaming operators, demonstrating how public institutions can harness private‑sector innovation to deliver social and economic dividends.

In summary, the partnership between Ghana’s National Lottery Authority and KGL has turned a dire fiscal situation into a triumphant case study of digital transformation. By embracing mobile ticketing, integrated payments, data‑driven marketing, and rigorous compliance, the NLA not only restored its revenue streams but also expanded its social mandate—illustrating that strategic public‑private collaboration can yield wins for both the state and its citizens.