Taxing lottery wins counterproductive – expert
Legal Advisor to the European Lotteries (EL),Mr. Phillipe Vlaemminck, has urged reconsideration of taxing lottery winners, arguing that such practices are counterproductive and diminish the appeal of the game.
Addressing a training session organized by the National Lottery Authority (NLA) in Ghana, Mr. Vlaemminck emphasized that taxes on lottery winnings disincentivize players and ultimately harm both lottery institutions and good causes funded by lottery revenues.
Mr. Vlaemminck, along with Ms. Beata Guzik, EL Public Affairs Director, was in Ghana to share their expertise with NLA management, Lotto Marketing Companies (LMCs), Private Lottery Operators (PLOs), and third-party collaborators.
The comprehensive training covered a wide range of topics, including the role of lotteries, responsible gaming practices, combating illegal lotteries, global lottery trends, the legal framework in the European Union, anti-money laundering measures, the impact of AI and new technologies, and multi-jurisdictional games.
Participants were trained on enforcing responsible gaming practices, ensuring the welfare of patrons over profits.
They learned to implement measures informing players about the odds of winning, helping them make informed decisions and avoid unrealistic expectations and gambling-related issues.
Speaking on the contentious issue of taxing lottery winnings, Mr. Vlaemminck stated, “When people play the lottery, they want to see all their money. Taxing their wins deters players from participating again, which causes lottery institutions and operators, who already contribute significantly to good causes, to lose revenue. I believe the Ghanaian government and governments elsewhere should completely abolish taxes on lottery winnings, allowing players to enjoy their wins.”
Mr. Vlaemminck also stressed the importance of government involvement in fighting illegal lottery operations, complementing the efforts of legitimate lottery institutions and operators.
Mr. Samuel Awuku, Director-General of the NLA, highlighted the significance of the training in enhancing NLA operations and enlightening stakeholders.
“This training is key for the NLA in our commitment to adhere to and promote Responsible Gaming practices per the standards of the World Lottery Association (WLA). We want to carry our retailers and stakeholders along so we can practice ethically and create a safe lottery space for our patrons. It is also an avenue to deepen our relationship with the WLA and EL.”
The training session follows engagements at an EL Public Order Seminar on Enforcing Gambling Regulation: Significance and Challenges, held in Brussels in February.
Mr. Awuku, who spoke on illegal gambling in Ghana, called for collaboration with the European Lotteries to fight illegal operations and conduct training sessions for the NLA and its stakeholders.
He also sought Observer status with the EL to participate in seminars and training programs to enhance NLA operations. The NLA has achieved WLA Level 2 Certification in Responsible Gaming and is applying for Level 3.
Participants who received certificates in Responsible Gaming found the training sessions enlightening and impactful, urging the NLA to organize more training to stay abreast of best practices and improve their businesses.
With over 40 years of experience in lotteries, betting, and gambling, Mr. Phillipe Vlaemminck advises several European states, gaming regulators, lottery associations, and operators.
Ms. Beata Guzik, with over 20 years of experience, is a lawyer and public affairs expert involved in many business areas and closely follows EU regulatory developments and court cases.
Their combined expertise provided valuable insights to the training participants, ensuring a deep understanding of the gaming industry’s complexities and best practices.
