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HomeGeneralLegal Betting Tax Pushes Gamblers Toward the Underground Market - Sammy Awuku

Legal Betting Tax Pushes Gamblers Toward the Underground Market – Sammy Awuku

Published on

, Ghana Street Journal

The former Director-General of the National Lottery Authority (NLA) Sammy Awuku, and has expressed strong concerns over the government’s approach to taxing legal betting operators.

According to the current New Patriotic Party (NPP) Member of Parliament for Akuapem North, the current taxation model would only drive bettors towards illegal underground betting operators, undermining the government’s efforts to regulate and collect revenue from the industry.

“If the government is taxing itself, then what will happen is that the underground operators that we call the illegal operators will become emboldened,” Awuku said, highlighting the unintended consequences of taxing legitimate operators. He pointed out that when legal operators are taxed, they face an inherent disadvantage compared to their illegal counterparts.

To illustrate his point, Awuku explained the dilemma in simple terms: “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.”

READ ALSO: Samuel Awuku Resigns as Director-General of NLA

This significant difference, he argued, creates a clear incentive for people to turn to illegal operators. The result, he warned, is not only harmful to the legitimate betting sector but also undermines the government’s efforts to generate revenue.

Awuku emphasized that this paradox ultimately discourages people from engaging with regulated betting platforms and instead drives them to underground operations that are not subject to any form of taxation or oversight.

“For me, it was counterproductive,” he remarked, stressing the need for a more balanced approach to the betting industry.

The discussion also touched on the opposition party’s stance on the issue, particularly comments made by the Finance Minister-designate from the National Democratic Congress (NDC). Awuku voiced concerns over the NDC’s position, which in the past called for a complete ban on betting activities rather than just scrapping the tax.

“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,” Awuku pointed out.

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