Legal Advisor to the European Lotteries (EL), Phillipe Vlaemminck, has called on governments globally to reconsider the practice of taxing lottery winnings as a method of revenue generation, arguing that it discourages participation and diminishes the appeal of the game.
Speaking during a training session organized by the National Lottery Authority in Ghana, Mr. Vlaemminck emphasized that such taxation is counterproductive.
He was accompanied by Ms. Beata Guzik, EL Public Affairs Director. The session aimed to educate management, Lotto Marketing Companies (LMCs), Private Lottery Operators (PLOs), and third-party collaborators on various aspects of lottery operations and regulations.
The training covered a wide range of topics, including the role of lotteries, responsible gaming, combating illegal lotteries, global lottery trends, the legal framework within the European Union, anti-money laundering practices, the impact of artificial intelligence and new technologies, the world lottery market, and types of multi-jurisdictional games.
Participants were trained on the necessity of enforcing responsible gaming practices, ensuring that profit motives do not overshadow the welfare of patrons. They learned the importance of educating players about the odds of winning to help them make informed decisions and avoid unrealistic expectations and gambling-related problems.
Mr. Vlaemminck highlighted that taxing lottery winnings serves as a deterrent for players and should not be used by governments as a primary means of revenue generation. Instead, he urged a focus on sustainable practices that maintain the attractiveness of the lottery.
“When people play the lottery, they want to see all their money, and so taxing their wins deters the player from participating again, which causes lottery institutions and operators who are already contributing significantly to good causes to lose revenue, and so I believe the Ghanaian government and governments in other parts of the world who practice this should completely abolish taxes on the lottery. Let’s allow the players to enjoy their wins.”
Mr. Phillipe Vlamminck also underscored the crucial role of governments in combating illegal lottery operations, emphasizing that these efforts should support and complement the initiatives of lottery institutions and operators.
Director-General Samuel Awuku stated that the training would enhance the National Lottery Authority’s (NLA) operations and educate its stakeholders, who can then disseminate this knowledge within their teams.
“This training is key for the operations of NLA in our commitment to adhere to and promote Responsible Gaming practices per the standards of the World Lottery Association. (WLA) and 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 the EL Public Order Seminar on Enforcing Gambling Regulation: Significance and Challenges, held in Brussels in February by the European Lotteries Association. At this seminar, Mr. Samuel Awuku, Director-General of the National Lottery Authority (NLA), was invited to speak on illegal gambling in Ghana.
During his presentation, Mr. Awuku outlined measures implemented by the NLA and the Gaming Commission to combat illegal lottery operations and gambling in Ghana.
He called for collaboration with the European Lotteries to tackle illegal activities and hold training sessions for the Authority and its stakeholders. Additionally, he requested Observer status with the European Lotteries to allow the NLA to participate in seminars and training programs organized by the EL to enhance the NLA’s operations.
The NLA has achieved WLA Level 2 Certification in Responsible Gaming and has applied to attain Level 3.
Participants of the EL training, who received certificates in Responsible Gaming, found the sessions enlightening and impactful. They urged the NLA to organize more training to keep them updated on best practices and improve their business operations.
The trainer, Mr. Phillipe Vlamminck, boasts over 40 years of experience in lotteries, betting, and gambling. He represents and advises several European Member States and governments worldwide, their gaming regulators, lottery associations, cooperative structures like EuroMillions, and aspects related to Euro Jackpot & Viking Lotto.
Ms. Beata Guzik, with over 20 years of experience, is involved in various business areas as a lawyer and public affairs expert, following up on EU regulatory developments and court cases.