The Rise of Sports Betting in Ghana: A Thriving Industry

Today, there are 31 licensed sports betting operators in Ghana. In just a few years, the number has increased from only 12 licensed companies to 31. One would agree that adverts promoting the business of one operator or the other have become commonplace – billboards and paraphernalia are everywhere. Indeed, the time of the gaming industry has come, and the government has taken a keen interest in the industry. Sports betting together with the casino business are the major players in Ghana’s gaming industry, though sports betting is much more popular and accessible to many Ghanaians. Between 2019 and 2022, the government collected GHS450m in taxes from the gaming industry. There is still a lot more to be collected. The sports betting sub-industry has become so popular that there was a massive player revolt when the government implemented a 10% withholding tax on winnings in August 2023. Although massive advertisement has increased the popularity of the sub-industry, the sub-industry’s massive popularity can be attributed to growing interest in the many football leagues, especially in Europe. The sub-industry’s business therefore peaks during the various European soccer leagues, especially the English Premiere League and the European Union of European Football Associations (UEFA) Champions League. Sports betting is now big business, beyond core football lovers. Today, all over the world, there are economies both at the national level and the sub-national levels where the gaming industry has become a significant contributor to public sector revenue. The usual examples are Las Vegas and New Jersey in the United States of America and Macau in China. Malta, Singapore and Aruba have also become very popular gaming destinations for gamblers. In all these cities and countries, the government has left no stone unturned to make them casinos and betting hubs for players in the country and abroad. One cannot blame these economies that have leveraged the gaming industry to boost revenue. In addition to the direct revenue from the industry, there are also linkages to the wider economy that bode well for economic development. According to the American Gaming Association, the gambling market in the United States of America contributes almost USD261 billion to the economy annually and supports 1.8 million jobs across the country. The industry has therefore become an important sector for purposes of economic diversification. Right here on the continent of Africa, Kenya, Uganda, Tanzania, and Nigeria now boast of large-fledging gaming industries in their respective countries. In these African countries, apart from the direct revenue from the industry, they have also seen a significant boost in advertising spend and financial inclusion by reason of the use of mobile money applications. Ghana has not been left alone in the benefits that accrue from the gaming industry. In fact, it has become an important source of revenue for the government of Ghana. As the country finds itself in dire economic straits, the gaming industry has become one of the industries that the government has targeted to increase its revenue. In April 2023, the Parliament of Ghana passed the Income Tax (Amendment) Act, 2023 (Act 1094). Among other things, Act 1094 introduced a gaming revenue tax of 20%. It also introduced a 10% tax on winnings from the gaming industry. According to sources within the Ghana Revenue Authority, the government of Ghana is hoping to raise GHS 1billion annually in direct taxes from the gaming industry. The Ghana Sports Betting Association (GHASBO) has claimed that the advertising spend within Ghana from the gaming industry is conservatively estimated at GHS 200 million annually. Indeed, the telecommunication companies in Ghana are also making millions of cedis as processor charges from the industry. In 2019, the gaming industry accounted for the single largest mobile money sign-ups in the country thereby supporting the government’s financial inclusion and digitalization agenda. In the area of corporate social responsibility, sports betting operators have provided a platform for many people in the sports industry to receive training and rediscover themselves. In this direction, sports betting operators have provided training to assist some retired footballers and sports personnel in exploring business opportunities after their active sporting careers. These initiatives also help to discover new talents in the sports industry in Ghana. Sports betting operators have provided headline sponsorship for at least eight (8) Ghana Premiere League teams within the last five (5) years. The contribution of sports betting to the Ghana economy has been far-reaching. According to GHASBO, one sports betting operator is in its second year of sponsoring the entire Ghana Premiere League. Despite the above, the gaming industry worldwide has historically been associated with dodgy people, fraudsters and to put it bluntly, criminals. As the world continues to be a dangerous place, any industry that is used as a conduit for criminal activities will obviously incur the wrath of authorities. In many countries around the world, such as the United States, China and India, governments in the past tried to ban the industry entirely or severely restrict its existence. However, the more they tried to ban it, the more the industry found ingenious and clever ways to survive. Today, with the advent of technology, it is almost impossible to impose a total ban on betting anywhere in the world. Governments quickly realized the futility of trying to suppress the industry and changed their attitudes. The attitude became one of sanitizing the industry of crime to generate the most revenue possible from a well-regulated gaming industry. This change of perception mediated policy changes which later framed better regulations to govern the gaming industry. Better regulations allowed governments to see the sheer volume of transactions and money that passes through the value chain. Smart government officials then began to explore how they could leverage the industry to raise money and deepen linkages to other parts of the economy. Today, around the world, the gaming industry has become one of the sources to diversify economic development. There is therefore a gaming industry almost everywhere on the planet. Malta, with a population of 516,000 received revenue of almost USD 1 billion in 2020 from its gaming industry. The gaming industry contributes about 8% of the economy of Malta. Online gaming is a significantly important part of Malta’s economy. Around 50% of the country’s international bandwidth is dedicated to online gambling activities. Cities such as Cairo in Egypt, Sydney in Australia, Manila in the Philippines, Lima in Peru and San Jose in Costa Rica have become popular tourist destinations partly because of their gaming culture. They have each relied heavily on the gaming industry for their economic development. On the continent of Africa, the revenue from the online gambling market alone is projected to reach USD1.6 billion in 2023 and will grow at an average rate of 9% yearly. Kenya, Uganda, Tanzania, Nigeria, Rwanda and South Africa have, in the recent past, seen significant growth in their gaming industry. Ivory Coast, Senegal and the Republic of Benin are currently developing their gaming industry as well. Persons and groups which advocate for a total ban or the placement of severe restrictions on the gaming industry will have to reconsider their position. One can appreciate their concerns though. In addition to the potential criminal activities in the gaming industry, there is also the moral question. A significant number of our compatriots consider gambling as immoral. While that may be true, we cannot legislate morality. Any society that has tried to legislate morality has failed or turned into a highly dysfunctional society. In any case, whose moral code would be the standard and where would the line be drawn? Modern constitutional protections and civil liberties make it almost impossible to legislate morality. In the face of the economic benefits of the gaming industry, it is important that Ghana adopts a prudent and pragmatic approach to deal with the gaming industry. In a highly competitive world if Ghana wants to realize the dream of “Ghana Beyond Aid”, it must leverage all legitimate means to raise revenue and deepen economic diversification. The call for a total ban or the placement of severe restrictions on the gaming industry can be likened to what Ghana has essentially done to Palm Wine, Akpeteshie, Pito and other locally brewed alcoholic drinks. Historically, the fixation has been on the negatives, particularly those who have abused these alcoholic drinks to vilify local drinks. Detractors in other countries have helped drive the narrative that the consumption of…