Six CSOs call on govt to reconsider decision to remove Betting Tax

Some Civil Society Organizations (CSOs) in Ghana including the Vision for Accelerated Sustainable Development, the Ghana NCD Alliance, Jaishi Youth Initiative, Tax Advocacy Network for Health Promotion, Revenue Mobilization Africa (RMA), Stroke Association Support Network among others are calling on the government to reconsider its decision to remove the current tax on wins/gains from betting, a subset of gambling, which specifically pertains to predicting the outcomes of sports events.

They rather recommend the increasing of tax on these gains to discourage gambling in the country, especially among young and poor people considering the negative health and socioeconomic impact. There is sufficient and well-documented evidence of the negative impacts of betting on our communities and those around us.

A statement they issued and signed by Labram Musah, National Coordinator, Ghana NCD Alliance Public Health Policy Expert & Development Advocate said that betting has emerged as a globally acceptable venture, embedded in the fabric of modern society, with online platforms significantly enhancing accessibility and participation rates.

According to the World Gambling Statistics, approximately 26% of the global population engages in gambling activities annually, equating to over 1.6 billion individuals worldwide.

Online gambling has experienced exponential growth, generating huge revenues with sports betting accounting for a substantial portion of this figure. This upsurge has been fueled by rapid technological advancements, aggressive marketing strategies, and the enticing prospect of significant financial rewards, rendering gambling a normalized activity in many parts of the world, from communities, cities, and countries.

Sadly,the statement said, in Ghana, betting has gained alarming publicity and participation, permeating various aspects of our society. Advanced technology plus robust and aggressive uncontrolled marketing initiatives has made betting easily accessible and embedded sports betting into the daily lives of many Ghanaians.

A 2024 report by TGM Research indicates that 41.7% of Ghanaians engaged in sports betting within the past year, with 95% of these bettors favoring online platforms over traditional betting shops. Sadly, most participants fall within the 18 to 35 age brackets, lured by the promise of quick financial gains (quick money) in a challenging economic landscape. Monetary motivation was cited by 74.17% of respondents as the primary reason for betting, highlighting how economic pressures drive many people to gamble.

In a recent interview on a popular radio interview platform dubbed ‘Eyewitness News’, Economist, Professor Patrick Asuming, expressed critical insights regarding the government’s proposals to abolish the Betting Tax, emphasizing its importance not just as a revenue-generating instrument, but also as a crucial regulatory mechanism in addressing the growing societal challenges associated with gambling, particularly among the youth.

Betting addiction is having a devastating impact on young people and youth advancement across multiple dimensions. The health, social, and economic consequences of gambling present intricate challenges that require comprehensive strategies and effective regulatory measures to mitigate their adverse effects.

Research shows that betting and gaming addiction have significant health impacts, primarily affecting mental and physical well-being. On the mental health front, gambling addiction is closely linked to anxiety, depression, and stress, as individuals experience emotional highs and lows from their gambling behaviors, leading to intense psychological instability, according to the World Health Organization (WHO).

The chronic stress and financial strain often associated with addiction can increase the risk of developing Non-Communicable Diseases (NCDs) like cardiovascular diseases and hypertension, due to elevated blood pressure and the negative effects of prolonged stress. As the addiction worsens, individuals may also turn to substances like alcohol or drugs to cope with emotional distress, compounding the physical and mental health risks (Majeed et al., 2023).

Beyond the negative consequences that betting has on our health, addiction profoundly impacts individuals and communities, leading to significant social consequences. Financial hardship is a primary concern, as individuals may deplete savings, accrue substantial debt, and experience financial instability, which can strain family relationships and lead to social isolation. This financial strain often results in increased crime rates, as some individuals resort to theft or embezzlement to fund their gambling habits, thereby elevating criminal activity within communities. Governments face rising social welfare costs, and addiction treatment services, while healthcare systems bear the burden of addressing addiction-related health issues (Majeed et al., 2023).

One striking example of the tragic consequences of sports betting is the case of a 76-year-old chief and retired educationist who died by suicide after losing 120,000 Ghanaian Cedis. This incident not only highlights the addictive nature of gambling but also accentuates its capacity to push individuals to the brink of despair. In another disheartening instance, an employee of an Accra-based electronics company was arrested for allegedly misappropriating over 1 million Ghanaian Cedis of the company’s funds to fuel his betting addiction which has led to his arrest and imprisonment.

In April 2022, over 6,000 students at the Kwame Nkrumah University of Science and Technology were deferred for not meeting the minimum payment requirement of 70% of their school fees. Investigations revealed that some students had diverted their fees into betting and its ventures, leading to academic setbacks. The dire setback is the participation of minors on these betting websites.

“It is heartwarming that the revised Gaming Act bans well-known personalities’ endorsements of gambling platforms to discourage youth and children from betting. This law prohibits public figures like entertainers and athletes from promoting gambling, curbing its glamorization as risk-free. Evidence shows such endorsements strongly influence young people, aligning this measure with efforts to protect vulnerable populations and promote public health,” – the statement said.

International organizations including WHO, United Nations Development Programme (UNDP) International Centre for Responsible Gaming among others have expressed growing concern about the impact of gambling and betting, particularly on vulnerable populations. The WHO acknowledges the health impacts of gambling and advocates for multisectoral action to mitigate these harms. The UNDP ascertained that the rise of online gambling, facilitated by payment platforms and increased consumerism, is generating significant negative impacts on the Sustainable Development Goals (SDGs).

Such financial strain not only undermines efforts to alleviate poverty (SDG 1) but can also contribute to deteriorating health and well-being (SDG 3) as individuals and families may face increased stress, mental health challenges, and lifestyle-related issues stemming from gambling addiction and financial instability. Globally, various countries have adopted diverse regulatory measures to address the challenges posed by gambling and betting. For instance, countries like Saudi Arabia and North Korea prohibit all forms of gambling, enforcing strict legal penalties to deter participation.

The United Kingdom and Australia have embraced a regulated approach, focusing on harm reduction rather than prohibition. The UK has stringent measures that include age verification systems, self-exclusion programs, and restrictions on advertising during peak hours to limit exposure to minors. Australia similarly enforces strict advertising rules and imposes betting limits to protect users from excessive losses. Kenya has emerged as another significant example of progressive gambling regulation in Africa, particularly in addressing the unique challenges posed by mobile betting.

“We recommend a strict regulatory measure on all forms of betting advertising, sponsorship, and promotion across all media platforms, including TV, radio, online spaces, and public areas. Prohibit targeted advertising aimed at vulnerable groups, particularly youth, and individuals with gambling problems, enforce a strict minimum age requirement for gambling, such as 18 years or older, and implement robust age verification systems for both online and physical betting platforms to ensure compliance.”

The government must provide accessible gambling addiction support services, including counseling, rehabilitation programs, and dedicated hotlines, and promote public education campaigns on the risks of gambling and available resources for addiction prevention, currently there are none.

More importantly, the government must sanction or withdraw license of operators and hold them accountable for unethical practices, such as targeting vulnerable populations including children and young people. It is vital that the government recognizes the social implications of betting and gambling addiction and understands the role taxation plays in discouraging participation and shaping societal behaviors.

“Instead of lifting the taxes, we suggest a full assessment of the impact of betting, taking into account country experiences and best practices to guide government action. Ghana must not venture into the realm of jeopardizing the foundation of young people and children because of the interest of the few industry players who only prioritize their commercial interest over the health and safety of the larger society. We call on the government to consider our clarion call and act to prevent the looming danger that lies ahead if we fail in our combative action.”

Source: 3news.com

About Post Author

Samuel

I am a journalist specializing in gambling in Africa and around the world. I am particularly interested in stories about games and casinos.

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Samuel

I am a journalist specializing in gambling in Africa and around the world. I am particularly interested in stories about games and casinos.