Betting Tax Misuse in Ghana: Why a National Sports Fund Is the Better Solution

Introduction

In October 2025, Ghana’s Sports Minister Kofi Adams revealed that the now‑defunct betting tax failed to deliver the promised boost for the country’s sports sector. Instead of financing stadium upgrades, athlete training, and grassroots programmes, the revenue was diverted to unrelated budget items, leaving Ghanaian sport under‑funded.

This article dissects the minister’s statements, explains why the tax was ineffective, and outlines the government’s new approach: a National Sports Fund financed by levies on existing revenue streams rather than fresh taxation. The goal is to provide a clear, SEO‑friendly guide for readers, policymakers, and sports administrators seeking a transparent financing model.

Analysis

Why the Betting Tax Was Conceived

The original betting levy, introduced under the Finance Act 2022, aimed to capture a portion of the booming gambling industry’s profits and redirect them toward sports development. The rationale was simple:

• Ghana’s betting market generated billions of cedis annually.
• Sports, especially football, athletics, and boxing, required modern facilities and systematic talent nurturing.
• Linking a popular entertainment activity to national development seemed politically attractive.

Implementation Gaps

Minister Adams highlighted two critical shortcomings:

1. Lack of earmarked allocation: The tax revenue was pooled into the general budget, making it indistinguishable from other funds.
2. Absence of transparent governance: No dedicated board or accountability mechanism ensured that the money reached sports projects.

Consequently, the tax became a “plug” for fiscal shortfalls rather than a catalyst for sports infrastructure. The minister warned that “good intentions become unpopular when executed without a transparent goal.”

The Shift Toward a National Sports Fund

Recognising the misstep, the government announced a National Sports Fund (NSF) that will:

• Collect levies on existing revenue sources (e.g., betting operators’ gross earnings) rather than impose a new tax.
• Allocate funds exclusively to sports‑related activities, such as stadium construction, coaching education, and athlete scholarships.
• Be managed by professional fund managers rather than political appointees, ensuring accountability.

According to Adams, the NSF will start modestly but could grow to “tens of millions of cedis” as compliance improves and data collection becomes more accurate.

Summary

The betting tax in Ghana was introduced with the intention of funding sports but was misapplied, ending up as a generic revenue source. Minister Kofi Adams now proposes a National Sports Fund that will:

• Leverage existing betting revenues through a transparent levy.
• Directly finance key sports sectors, including football, athletics, boxing, volleyball, and hockey.
• Be overseen by technical experts, not politicians, to prevent misallocation.

This model mirrors successful sports financing systems in countries such as the United Kingdom, where a dedicated fund has produced world‑class athletes.

Key Points

Practical Advice

For Policymakers

1. Define clear eligibility criteria: Specify which projects qualify for NSF support (e.g., stadium upgrades, coaching licences).
2. Establish a transparent reporting system: Publish quarterly financial statements and project progress reports.
3. Engage stakeholders: Involve sports federations, athletes’ unions, and civil society in fund governance.

For Sports Administrators

• Develop detailed project proposals that align with NSF priorities.
• Maintain rigorous documentation to facilitate audit trails.
• Seek partnerships with private sponsors to complement NSF allocations.

For Betting Operators

Operators should:

• Implement robust data collection systems to report gross betting turnover accurately.
• Allocate the required levy promptly to avoid penalties.
• Participate in industry‑wide dialogues on how the levy can be optimised for sports development.

Points of Caution

While the National Sports Fund offers many advantages, several risks must be managed:

• Compliance risk: Inaccurate reporting by betting firms could lead to revenue shortfalls.
• Political interference: Even with professional managers, undue pressure from ministers could skew allocations.
• Scope creep: Expanding the fund’s remit beyond sports could dilute its effectiveness.

Mitigation strategies include independent audits, statutory safeguards that lock the fund’s purpose, and clear legislative language defining its scope.

Comparison

Betting Tax vs. National Sports Fund

Legal Implications

The shift from a dedicated betting tax to a levy‑based National Sports Fund raises several legal considerations under Ghanaian law:

1. Constitutional compliance: Any levy must respect the Constitution’s provisions on taxation (Article 71) and cannot be retroactively applied to previous fiscal years.
2. Parliamentary approval: The draft bill for the NSF has been sent to Cabinet and will require parliamentary endorsement before becoming law. Parliament retains the authority to amend the fund’s structure or introduce a new tax if deemed necessary.
3. Regulatory oversight: The Securities and Exchange Commission (SEC) may need to register the NSF as a special purpose vehicle, ensuring compliance with financial reporting standards.
4. Contractual obligations: Existing betting licences may need amendment to include the levy clause, which must be negotiated in accordance with the Betting Act 2020.

Stakeholders should monitor the bill’s progress through the legislative pipeline to anticipate any changes that could affect funding levels or compliance requirements.

Conclusion

Ghana’s experience with the betting tax illustrates how good intentions can falter without clear earmarking, transparent governance, and stakeholder involvement. The proposed National Sports Fund seeks to correct these flaws by:

• Leveraging existing betting revenue through a targeted levy.
• Ensuring funds are dedicated exclusively to sports infrastructure and athlete development.
• Introducing professional management and robust accountability mechanisms.

If implemented effectively, the NSF could transform Ghana’s sports landscape, enabling athletes to compete on the world stage and delivering socioeconomic benefits through job creation, tourism, and national pride.

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