In the ever-evolving landscape of Ghanaian politics, an unexpected issue has taken center stage: the taxation of sports betting and lotteries.
Since the passage of the bill in March 2023, which mandates a ten percent deduction from all winnings, the topic has ignited fervent debate and captured the attention of both politicians and the public alike.
During his ‘Building Ghana Tour’ in the Bono East region, John Mahama, the flagbearer of the National Democratic Congress (NDC), made a bold pledge to review the ten percent tax on sports betting. He emphasized that addressing taxation was not just about betting but about examining the broader tax landscape, resonating with concerns raised by citizens.
Dr. Mahamudu Bawumia of the New Patriotic Party (NPP), also weighed in on the issue during a lecture at the University of Professional Studies UPSA. He expressed interest in abolishing several taxes, including the betting tax, by 2025, citing the need for fiscal space without compromising deficit targets.
The motivations behind this campaign promise are multifaceted. As Bangambiki Hambyarimana succinctly put it, “Politicians look for interest, not people.” In this case, the interests of the public, particularly the youth, have become a focal point for political maneuvering.
The numbers underscore the significance of sports betting in Ghanaian society. With over 11.18 million people accessing online betting sites alone, it has become deeply ingrained in daily life. Despite projections of substantial revenue generation, the discontent among gamblers and the youth remains palpable.
According to the Ghana Revenue Authority (GRA), betting is expected to generate GH¢1.2 billion ($104 million) in revenue by the end of 2024. However, the current betting tax generates GH¢15 million, with a target of GH¢60 million by the end of the football season. This disparity highlights the discrepancy between revenue generation and public sentiment.
The general public, especially gamblers and the youth, have expressed dissatisfaction with the levy since its implementation. The promise to scrap betting taxes resonates deeply with these demographics, tapping into their frustrations with perceived government overreach and economic hardship.
As Ghana approaches the 2024 December polls, the fate of the betting tax hangs in the balance. The electorate, armed with their grievances and aspirations, will ultimately decide the trajectory of governance in the country.
Whether the promises made by political candidates will translate into votes remains uncertain, but one thing is clear: the issue of sports betting taxation has emerged as a potent symbol of public discontent and political maneuvering in Ghanaian politics.
Wisdom Sarfo