Rumpus in lotto business: National Lottery Authority Sued

By William Yaw Owusu

Thursday August 16, 2007
The Ghana Lotto Operators Association and six others have filed a suit at an Accra High Court to stop the National Lottery, Authority from attempting to monopolies the lotto business in the country.

The plaintiffs including Obiri Asare and Sons Limited, Rambel Ent. Limited, Agrop Association Ltd, Star Lotto Ltd and From-Home Enterprises want an interlocutory injunction to restrain the defendant from “interfering with the property rights or lotto operating business of the plaintiffs pending the final determination of this matter.”

The plaintiffs, in relief’s, filed on August 13 are seeking “a declaration that the directive from the National Lottery Authority to private Lotto operators to surrender machines or equipment used for the operation of lottery to the Director-General by August 14, 2007 is unconstitutional, illegal and unreasonable.”

They want an order to set aside that directive and a further order restraining the defendant from “unlawfully, unconstitutionally or unreasonably interfering with the property rights of the plaintiffs.”

Furthermore, the plaintiffs want a declaration that the National Lotto Act, 2006 (Act 722), to the extent that it outlawed the operations of lotto business by private lotto operators, in infringes the constitutionally guaranteed right of the private lotto operators to free economic activity.

Besides, they want a declaration that “the creation of the National Lottery Authority to take over and monopolies the operation of the lotto business in Ghana infringes the constitutional injunction to the government to ensure a pronounced role of the private sector in the economy,” as well as cost.

In their statement of claim, the plaintiffs said they have been in private lotto operating business since 1989 and presently have a large number of employees and independent agents who conduct business for them or assist them in the operation of their lotto business.

According to them, the National Lotto Authority in July advertised in the media about its establishment and said it was the only body that was manded under the Act to operate lotto business in the country.

“Some of the announcements also listed various fees the defendant intends to charge for licences to be issued to lotto marketing companies and added that it has taken over the products and machines of the Department of National Lottories.”

Plaintiffs contend that they have their own marketing agents and could not be easily relegated to the position of lotto marketing agents.

“The defendants have actually taken over the assets and liabilities of the DNL and the latter have ceased to exist.”

They further claimed that the advertisement also directed all persons, who before Act 722 came into effect had their own machine or equipment for lottery business to surrender such equipment to the Director-General of NLA before August 14.

“The machines or equipment in question are our own property acquired with our own resources. We do not only have assets but also liabilities that cannot be severed from the assets,” they contended.

They further said that the NLA did not negotiate with them in respect of the machines or equipment as stipulated by Act 722.

The plaintiffs say they could neither be compelled to surrender their property to the NLA nor can the defendant compulsorily acquire their property without prior agreement as to compensation and other consequents.

“Attempt by the NLA to monopolies the operation of lotto business will strangle us to death and saddle us with debts of huge proportion, and the action by the NLA is inconsistent with the constitution of the nation,” they said.

The defendants are yet to respond to the application.