Betting industry contributes GHS 450m in taxes to Government
In a bid to shed light on the significant contributions of Ghana’s burgeoning betting industry, the Ghana Association of Sports Betting Operators (GHASBO) revealed that betting companies have paid an estimated GH₵450 million ($81 million) to the government since 2019, encompassing various forms of taxes and licensing fees. Dr. Kweku Ainuson, Secretary of GHASBO, made the disclosure during a compliance workshop held in Accra.
Dr. Ainuson, who also serves as the Director of Betway Ghana, emphasized the pivotal role played by the US$100 billion global sports betting industry in fueling economic growth worldwide, including Ghana. The disclosure came in the wake of GHASBO’s appeal to the Ghana Revenue Authority (GRA) to reconsider the implementation date of July 1, 2023, for the amended Act, which imposes taxes on all bet winnings.
In a bid to ensure adherence to the law, GHASBO is actively pursuing a self-compliance regulation mechanism for its members, aiming to align all operators with the legal framework. Furthermore, the association expressed its commitment to financing any corporate social responsibility initiatives initiated by the Gaming Commission, showcasing its dedication to broader societal development.
Parliament’s recent passage of the Income Tax (Amendment) (No.2) bill, 2022 into law marked a significant development in the country’s gaming landscape. Among its provisions, the bill reintroduced a 10 percent tax on lottery winnings, a measure previously abolished in 2017. The new tax structure now encompasses both lottery and betting winnings, with domestic punters being subject to the tax. Additionally, betting companies operating within Ghana will face a 20 percent tax on their revenue.
The public response to the new legislation has been mixed. While some perceive it as a means to generate revenue for the state, others criticize it as an additional burden on an already heavily taxed population. Thomas Agorsor, a representative of the GRA, indicated that the Authority has not yet collected any taxes on winnings from operators since the law’s passage. However, he emphasized that operators failing to recalibrate their systems must halt their operations from July 1, 2023.
Presently, Ghana boasts a total of twenty-one betting companies operating within its jurisdiction. Gary Nimako Marfo, Chairman of the Gaming Commission, reassured the public that the commission has implemented robust monitoring systems to ensure prompt payment of legitimate winnings by operators. He encouraged dissatisfied gamblers to address their grievances directly to the commission for swift resolution.
The Financial Intelligence Centre (FIC) highlighted its unwavering commitment to ensuring compliance with anti-money laundering laws and international standards among all betting companies. These entities are mandated to maintain comprehensive customer records, conduct risk assessments, and adhere to the Data Protection Act 2000, Act 843, which necessitates registration with the Data Protection Commission.
Non-compliant betting companies face a rigorous sanctions regime, including penalties ranging from 160 to 10,000 penalty units, alongside the potential for 10 years of imprisonment for data breaches. A one-day regulatory compliance workshop organized by GHASBO, powered by Betway, in collaboration with the Gaming Commission and GRA, convened representatives from various stakeholders, including the Criminal Investigations Department (CID) Unit of the Ghana Police Service, Data Protection Commission, Financial Intelligence Centre, and Telecommunications Service Providers.
As the Ghanaian betting industry navigates the new tax landscape, stakeholders remain vigilant about striking the right balance between generating revenue for the state and ensuring a fair and responsible gaming environment for consumers.
