Monday, 31 July 2017

Lottery – A major contributor to economy in Africa

Lottery has also proved to be a significant contributor to the economy in Africa. The proceeds of regulated lottery have been used in many countries for developmental purposes.

South Africa has majority of population involved in lottery. The NLC (National Lottery Commission) of South Africa was established in 2000, and by October 2015 had distributed the lottery proceeds of R19.6 billion (Approx $1.5 billion) to 14,396 non-profit organisations.

Out of this R9.2 billion ($712 million) went to charities, R4.7 billion ($364 million) to arts and R5 billion ($387 million) to sports organization.

In Niger, proceeds of lottery were used to build boreholes, fight against desert encroachment and many of the lottery winners are sponsored to Mecca to perform the holy pilgrimage.

The Gaming Board of Tanzania generates over 1.5 trillion Tanzanian shillings ($686 million) into country’s economy annually via gaming activities. The gaming industry contributed 3% to country’s GDP in 2015.

The National Lottery Regulatory Commission (NLRC) was established through the National Lottery Act. From the day of its establishment, the Commission gave permit to lottery operators to grow the market. This move created series of opportunities in the country.

It got them investors to invest in gaming industry, opened up business and employment opportunities in the country.

Nigerians spent an average of N154bn ($488 million) daily on betting with 7.5 million lottery and 22 million sports betting players in the country. According to NLRC, projected profit from the promo lottery alone is N45 billion ($143 million). The SMS lottery can generate about N150 billion ($475 million) revenue, while gaming industry is projected to bring over N300 billion ($951 million) to federal government annually.

Today, Nigerians are being advised by the National Lottery regulatory Commission to invest and engage in regulated lottery, as it gives them a platform to contribute in the development of nation.

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