The National Lotto Authority (NLA) has initiated moves to halt activities of telecommunications operators from promoting, conducting, running and advertising illegal lottery or games of chance disguised as marketing promotions.<\/p>\n
The move has come in the wake of several games of chance being
introduced onto the Ghanaian market by telecommunication operators. The NLA has therefore filed a motion on notice for an interim
injunction at the Fast Track High Court against Airtel Ghana Limited
and the National Communications Authority (NCA).<\/p>\n
In the motion, the NLA is seeking an order restraining agents,
servants, assigns and privies of Airtel Ghana Limited from promoting,
sponsoring and advertising the ongoing Airtel \u201cFreedom to Dream\u201d or
engaging in a game of chance in any form. The NLA is also seeking an order to prevent Airtel from conducting and supervising any draw on its network including \u201cCrack and Win\u201d disguised as marketing promotions.<\/p>\n
Again the NLA is seeking a declaration that Airtel\u2019s Freedom to
Dream is not a promotion but, in fact in law, a lottery, which is
prohibited by section 4 of the National Lotto Act of 2006, Act 722. The NLA is further seeking a declaration that Airtel\u2019s operation
of lottery without the requisite statutory license is illegal and
unlawful in that it had failed to comply with mandatory statutory
provision of the Lotto Act. It is also seeking general damages and
special damages.<\/p>\n
NLA is seeking a declaration that the value or the cost of the
top-up or airtime required as a precondition to participate in the
\u201cFreedom to Dream\u201d promotion represents a consideration which is
required by Airtel to enable qualifying entrants to participate in the
draw to win any prize or reward.<\/p>\n
In the case of the NCA, the NLA is seeking, among others, an
order compelling the NCA to exercise its statutory mandate under its
Act and the Electronic Communications Act, 2008, (Act 776) to develop
guidelines for marketing promotions by mobile network operators in
accordance with international best practices of telecommunications
regulators in other jurisdictions, thereby protecting consumers\u2019
interest and prevent illegal lottery activities disguised as marketing
promotions.<\/p>\n
It is also seeking an order that it is the statutory function and
duty of the NCA to classify services provided by mobile network
operators and determine whether Airtel\u2019s purported promotions could
pass as value added services or permissible communications or
marketing services under the NCA\u2019s Act, Act 2008 and act 769.
In NLA\u2019s statement of Claim, it said it was the statutory body
established by National Lotto Act, 2006 (Act 722), which was vested
with authority to regulate, supervise and manage national lotto as
well as ensure the enforcement of laws relating to the National Lotto.
The NLA noted that over the past years, mobile network operations
in the country had persistently and unlawfully engaged in lottery in
the form of games of chance in clear breach of the spirit and letter
of the National Lotto Act.<\/p>\n
According to the NLA the purported promotions had drawn public
comments in the media as being akin to gambling. It said consumer rights organizations had described such purported promotions as \u201cillegal, misleading, fraudulent, non-transparent and exploitative of unwitting subscribing consumers to mobile network services in Ghana\u201d.<\/p>\n
As a result in 2010, the Minister of Communications directed NCA
to investigate to determine that such purported promotions were in
breach of the laws of the land. The NLA said after the directive, the NCA which was vested with the responsibility of protecting the consumers, failed to take \u201cdefinitive legal and public position on the matter\u201d.<\/p>\n
According to the NLA the illegal lottery and games of chance of
the mobile networks have negatively impacted its (NLA\u2019s) operation
resulting in the loss of millions of cedis in revenue and unpaid Value
Added Tax (VAT) and other taxes due government.<\/p>\n
The NLA said in February this year, amidst pomp and pageantry,
Airtel launched another lottery game, disguised it as marketing
promotion by name \u201cFreedom to Dream\u201d slated to run from February to
March 2011. It noted that Airtel has further launched another game known as\u201cCRACK-THE-SAFE\u201d.<\/p>\n
NLA said these promotions were in breach of the National Lotto Act.<\/p>\n<\/div>\n
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