I'm excited the betting tax is going to be scrapped, it's counterproductive - Sammy Awuku

Accra, Ghana - 16 Jan, 2025 - Sammy Awuku, a former Director-General of the National Lottery Authority (NLA) and New Patriotic Party (NPP) Member of Parliament for Akuapem North has welcomed the government's plan to scrap the betting tax. 

Mr Awuku, a long-time critic of the tax, described it as counterproductive, citing its failure to yield positive results in many jurisdictions. "I'm excited that the betting tax is going to be scrapped," he said in an interview with Daily Guide Network (DGN).

He explained that the tax had created a dilemma, particularly for government-owned institutions like the NLA, which was also subject to the tax. This, he argued, made illegal betting operators more attractive to players, as they offered better odds without the tax.

“I’ve been consistent about it, even during the NPP era, and I said it is something that personally has not worked in many of the jurisdictions anytime you have introduced taxes on betting.”

“Lottery was part of the betting tax. The National Lottery Authority, for instance, is owned by the government, and apart from the things that they do, at the end of the day, they must also contribute to the national kitty,” he explained.

“If the government is taxing itself, then what will happen is that the underground operators that we call the illegal operators will become emboldened.

“If you play with the government, you attract a 10% tax on what you win. But if you play with the illegals, you get your full money. So, I told them that, for me, it was counterproductive,” he added.

Mr Awuku also criticised the ruling National Democratic Congress (NDC) government for its inconsistent stance on the issue. He noted that the Finance Minister-designate had previously suggested banning betting and lottery activities altogether.

“The difficulty with the NDC position is that earlier the Finance Minister-designate, in time past, had said that it should be banned—not just the tax being scrapped.

Source: Lead News Online