GSM operators to face Lottery Commission’s anger

CAN GSM operators run lotteries?

This is the question the mobile giants are to answer “any moment from now” as lottery regulators begin to enforce the law.

Operators of  GSM services routinely violate the laws governing lottery, it was alleged yesterday.

An official source said the GSM licences granted by the National Communications Commission (NCC) does not  permit mobile operators to operate lotteries or gambling.

But, GSM operators who spoke with The Nation denied the allegation.

The National Lottery Act of 2005 gives the National Lottery Regulatory Commission (NLRC) the power to grant short term permits to individual or corporate bodies to organise promotional lotteries.

“Indeed, over the past few years, such permits were granted at various times to mobile operators for running various promotions with the intention of allowing mobile operators to promote their brands, products and services, “said the source, who pleaded not to be named.

“The permits granted to mobile operators were never intended at allowing telecom operators to run lotteries or gambling operations. Such activities should be operated and managed by professional dedicated lottery companies supervised closely by NLRC.

“Unfortunately, in the permits granted to mobile operators, promotions were misused and exploited for generating quick profit, which is not linked to the promotion of mobile operator services, brand or products,” said another source close to the regulatory body.

But, speaking with The Nation yesterday, the Chief Executive Officer of Airtell Nigeria, Rajan Swaroop, said his company was not involved in any illegal lottery operations.

Rajan said: “Before we engage in lotteries and promos, we obtain approval from the Nigerian Communications Commission and the National Lottery Regulatory Commission (NLRC). Everything we do is within the ambit of the law.”

A top official of Globacom, who pleaded not to be named, also denied the involvment of the  company in such illegal lotteries and promotions.

He said: “To show you we have approval from the NCC, officials of the Commission sometimes attend our draws. Even NLRC officials can testify to the transparency of our promos. Winners are always given whatever they win. It is this transparency of Glo promos that has endeared subscribers to it, that makes the text4millions popular.”

But sources insist that “not only mobile operators misuse their permit but they also fail to follow the basic conditions under which the permits were granted. Mobile operators have failed to follow the law, which requires that 50 per cent of all proceeds of lottery go back to the consumers as prizes, while 20 per cent must go to a lottery trust fund for the promotion of good causes.”

Another official   source added: “Lottery is a way of raising money for the government for charity, education, development and for the support of arts and culture. The money raised could be used for big projects that touch the lives of many. The NLRC is affirming the commitment of the Federal Government to nurture the industry and guarantee that all mobile lottery potential is exploited for the good of Nigeria.

“The NLRC should grant a few special licences to expert companies, that will run national promotions across all mobile operator networks and ensure full compliance of the companies with the lottery act and telecommunication regulation.”