CSOs call on government to reconsider decision to remove betting tax in Ghana
In recent debates about economic policies in Ghana, the removal of the 10% betting tax has become a key point of contention.
The Institute of Economic Affairs (IEA) is concerned after newly elected President John Mahama announced that his administration abolished the 10% betting tax that was introduced in 2023. The automatic withdrawal of the tax from all gambling wins has resulted in several Civil Society Organisations (CSOs) speaking up about their concerns.
Social and economic consequences of gambling
The removal of the betting tax is part of a broader set of measures to eliminate so-called “nuisance taxes” in Ghana. While the government aims to enhance fiscal stability, others, like the IEA, argue that the tax removal would result in a significant loss of revenue as well as a lack of deterrents for problem gambling.
The IEA suggests a more modest remedy—a reduction in the betting tax from 10% to 5%—rather than its elimination. A coalition of Civil Society Organisations, comprising bodies such as the Vision for Accelerated Sustainable Development and the Ghana NCD Alliance, has, in no uncertain terms, expressed its opposition to the government’s proposal. They are advocating for the necessity of retaining or even raising the betting tax to deter gambling, particularly among vulnerable young Ghanaian citizens who will suffer the worst of its effects.
In a statement issued by Labram Musah, the National Coordinator of Ghana NCD Alliance Public Health Policy Expert & Development Advocate, it was indicated that contemporary gambling activities, especially those intensified by online websites, are rooted deeply in society. World Gambling Statistics states that about 26% of the world’s population indulges in gambling activities every year, which is more than 1.6 billion people worldwide. In Ghana as well, the picture is no different, with 41.7% of Ghanaians having taken part in sports betting in the past year alone and 95% using online platforms as opposed to traditional bookie shops.
The increase in betting behaviour is most concerning in the younger age brackets, i.e., between 18 and 35 years, who have a significantly greater inclination towards participation. The promise of easy monetary rewards in a harsh economic environment compels many to take up gambling. 74.17% of the participants in a 2024 report by TGM Research indicated money motivation as the primary reason for their involvement in betting.
Minimising the hazards of betting
The significance of the betting tax is not only as a revenue-generating tool but also as a tool for regulating the expanding gambling industry in Ghana. The implications of gambling addiction can be severe, with the youth experiencing devastating health, social, and economic consequences. The issue of wagering needs comprehensive measures to deal with the potential aftermath, particularly among the youth.
Studies show that gambling addiction can be consequential to the mental well-being of players. The CSOs favour a comprehensive examination of the consequences of gambling as opposed to tax increases, guided by international best practices and informed by lessons from elsewhere. This can assist the government in having a better grasp of the environment and, hence, make regulation more effective.
Ghana must place the welfare and future of its young citizens above the interests of some players in the industry who may place profit over collective interests. The call by Ghana’s CSOs to reconsider abolishing the betting tax is a reminder that our societies must be safeguarded from the potential risks of uncontrolled gambling behaviour. The government holds the ability to listen to these voices and act in favour of public health and social welfare to ensure that Ghana’s youth’s foundation is not sacrificed for economic gains.
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