Balancing football integrity and revenue: GFA’s sports betting conundrum

The re-election of John Dramani Mahama as President of Ghana has reignited debates over the country’s approach to taxing sports betting, placing the Ghana Football Association (GFA) in a precarious position as it navigates the balance between safeguarding football’s integrity and securing much-needed revenue.

President Mahama’s manifesto pledge to abolish the contentious betting tax has not only resonated with ordinary Ghanaians but has also sparked discussions among stakeholders in sports and business. 

His pledge, coupled with his promise to eliminate the Electronic Transaction Levy (E-Levy), signals a significant policy shift aimed at alleviating economic pressures on citizens while rethinking government revenue streams.

For the GFA, the implications of these changes extend beyond the fiscal realm and touch on the very fabric of Ghanaian football.

Growing revenue source

The betting industry in Ghana has witnessed exponential growth in recent years, driven by the rise of digital platforms and the increasing popularity of football, both locally and internationally. According to industry estimates, millions of Ghanaians engage in sports betting, with football matches drawing the lion’s share of wagers.

For the government, taxing betting winnings has been a logical move to tap into this lucrative sector. The current betting tax, however, has faced criticism for being excessive and punitive. 

Bettors—many of whom see sports betting as a supplementary income source—have voiced frustrations over losing a significant portion of their winnings to taxes.
President Mahama’s vow to explore alternatives to this tax reflects a broader recognition of these grievances. 

Speaking during his campaign, he underscored his intent to strike a balance between revenue generation and fairness. “We understand the economic challenges Ghanaians face,” he said, “and it is only right that we ease the burden where we can.”

GFA’s balancing act

While the government grapples with policy changes, the GFA faces a unique challenge—managing its relationship with the betting industry. 

The association has benefited financially from partnerships with betting companies, leveraging sponsorship deals to fund various initiatives, including grassroots development and league operations.

Partnership with betPawa

In August 2022, the GFA announced betPawa, an Estonia-based betting operator with a strong African footprint, as the headline sponsor for the Ghana Premier League in a lucrative three-year deal worth $6 million. 

The partnership, hailed as transformative, included several initiatives aimed at elevating the league’s profile and enhancing player welfare.

The “Locker Room Bonus” scheme, introduced under this deal, has been a standout success. It rewards players and technical teams of winning teams immediately after matches, with payments made directly to mobile wallets. 

During the 2023/24 season alone, betPawa invested GH¢1.23 million in these bonuses, a significant increase from previous years. Players’ earnings doubled from GH¢150 to GH¢400 per victory, reflecting the sponsor’s commitment to incentivising performance.

This initiative has not only benefited the men’s league but has also been extended to the Women’s FA Cup. Starting from the 2024/25 season, female players and their technical teams will also receive these bonuses, marking a historic moment for gender equity in Ghanaian football.

Beyond financial rewards, betPawa has funded the construction of a state-of-the-art AstroTurf pitch at the Ghanaman Soccer Centre of Excellence in Prampram. This development underscores the potential of betting sponsorships to provide long-term infrastructure benefits to the sport.

Challenges and controversies

However, the GFA’s partnership with betPawa has not been without challenges. Match-fixing scandals, such as AshantiGold’s demotion to Division Two in 2022, have cast a shadow over the league. 

The detailed investigation revealed how club officials manipulated matches to influence betting outcomes, raising concerns about the integrity of the sport.

In one infamous case, AshantiGold’s CEO, Emmanuel Frimpong, and President, Dr Kwaku Frimpong, were found guilty of colluding with a bettor to achieve a predetermined 5-1 scoreline against Inter Allies. 

The extensive call records and financial exchanges presented as evidence highlighted the deep entanglement of some football stakeholders with betting operators.

The rise of sports betting has also raised concerns about match-fixing and the integrity of the game. In recent years, there have been allegations of manipulated matches in Ghana’s leagues, tarnishing the sport’s reputation and eroding public trust. 

This dual reality has forced the GFA to walk a tightrope, benefiting from the industry while striving to protect the sanctity of football.

Such incidents have strained the GFA’s reputation, forcing it to intensify its vigilance and take decisive action against those undermining the game’s integrity.

“Football is a game of passion, and its credibility must be preserved at all costs,” said Kurt Okraku, President of the GFA. “We are committed to working with stakeholders, including the government and betting companies, to ensure a fair and transparent system.”

Economic and social implications

For many Ghanaians, sports betting has become more than a pastime; it’s a lifeline in a challenging economic environment. The current tax on winnings has been criticised for discouraging participation and stifling the potential of an industry that could otherwise thrive.

Industry analysts argue that reducing or abolishing the tax could have a stimulating effect, encouraging higher participation and, in turn, generating more revenue through indirect taxation and licensing fees. 

However, critics warn that such a move could exacerbate gambling addiction and its associated social issues.

The GFA, recognising these concerns, has advocated for a balanced approach. It has called for increased public education on responsible gambling and stricter enforcement of regulations to prevent underage betting and fraud.

Betting firms under scrutiny

The role of betting companies in this ecosystem cannot be overlooked. While these firms have injected much-needed funds into Ghanaian football through sponsorship deals, they have also come under scrutiny for their marketing practices and their role in perpetuating gambling culture.

As President Mahama’s administration takes shape, all eyes will be on his government’s next steps regarding sports betting. While his pledge to abolish the betting tax has been welcomed by many, implementing this promise will require careful consideration of its economic and social implications.

For the GFA, the stakes are equally high. The association’s ability to navigate this evolving landscape will be critical in ensuring that football in Ghana remains both financially viable and ethically sound. 

Its efforts to collaborate with betting companies, regulators and the government will set the tone for the future of the sport.

Ultimately, the debate over sports betting in Ghana underscores a broader challenge facing many nations—how to harness the economic potential of the betting industry while safeguarding the integrity of sports and the welfare of citizens.