The Minister of Finance recently received wild cheers from Ghanaian youth on social media when he announced the scrapping of betting tax.
The decision has sparked mixed reactions. While framed as a financial relief measure for young people, the move risks ignoring a far more insidious crisis: the rapid normalization of gambling addiction and a corrosive “get-rich-quick” mentality sweeping through Ghana’s youth population. Beneath the surface of this policy lies a ticking time bomb of societal and economic repercussions.
The Betting Boom: a symptom of desperation
Ghana’s betting industry has exploded in recent years, with platforms like SportyBet, Betway, and Premier Lotto saturating communities with promises of instant wealth. Billboards, radio jingles, and social media ads glamorize betting as a viable path to financial freedom. For many young Ghanaians, however, this “freedom” is a mirage. Research shows that 63% of bettors are aged 18–35, with most earning less than GH¢500 monthly. These individuals, already financially strained, are lured into staking scarce resources on near-impossible odds.
The tax removal, while reducing immediate costs for bettors, does nothing to curb the predatory tactics of betting companies. Worse, it risks legitimizing gambling as a socially acceptable—even government-sanctioned—activity. Without parallel regulations to restrict advertising, enforce age limits, or fund addiction recovery programs, the policy inadvertently fuels a dangerous cycle.
A hidden epidemic
Globally, gambling addiction is recognised as a public health crisis. The World Health Organization (WHO) links it to heightened risks of depression, anxiety, and suicide. In Ghana, where mental health services are underfunded and stigmatized, the consequences are dire. Stories abound of young people selling personal belongings, accruing debt, or even stealing to fund their betting habits. Kwame, a 24-year-old former university student in Accra, recounts how he dropped out after losing his tuition fees to online betting. “I kept thinking my big win was just one stake away,” he says. “Now I’m worse off than before.”
The psychological grip of gambling is exacerbated by its design. Betting apps use algorithms, flashy graphics, and “near-miss” features to mimic the thrill of winning, keeping users hooked. For a population already grappling with economic instability, these platforms become a toxic coping mechanism. Yet, Ghana lacks even a single public rehab center dedicated to gambling addiction, leaving victims like Kwame without support.
Unemployment the catalyst
The betting epidemic cannot be divorced from Ghana’s unemployment crisis. Figures from the Ghana Statistical Service suggest that the average rate of unemployment in the country has risen to 14.7 percent in the first three quarters of 2023.
The number of unemployed youths aged between 15 and 35 rose from about 1.2 million to over 1.3 million during the same period with the rate among females consistently higher than males with underemployment and informal survival gigs masking the problem. Each year, thousands of graduates enter a job market that offers few formal opportunities. According the Afrobarometer report 68% of young Ghanaians believe migration is their only hope for a better life.
In this vacuum of despair, betting emerges as a seductive alternative. “Why waste time looking for a job when I can win big tonight?” argues Ama, a 19-year-old street vendor in Madina who spends 30% of her daily earnings on lotto. Her sentiment reflects a broader disillusionment with traditional pathways to success. When education and hard work no longer guarantee stability, chance becomes a perverse equalizer.
The False Economy of Betting
Proponents of the tax removal argue that the betting industry creates jobs and stimulates the economy. While it’s true that the sector employs some youth as agents or marketers, these roles are often low-paid, temporary, and ethically questionable. Moreover, the economic drain caused by gambling far outweighs its benefits. According to Statista, a German data gathering and visualisation platform, revenues are expected to reach US$33 million this year—funds that could otherwise circulate in productive sectors like agriculture, education, or SMEs.
Betting companies, many foreign-owned, repatriate profits abroad, further weakening Ghana’s economy. Meanwhile, families and communities bear the hidden costs: fractured relationships, increased crime, and a generation raised to value luck over labour.
How to mitigate the harm
To salvage Ghana’s future, the government must adopt a two-pronged strategy: immediate harm reduction and long-term economic transformation.
1. Curbing exploitation: regulation and education
- Ban predatory advertising: Restrict betting ads during prime-time TV, near schools, and on social media.
- Enforce age restrictions: Implement biometric verification for betting accounts to exclude minors.
- Fund addiction recovery: Partner with NGOs to establish counseling centers and hotlines. Kenya’s Nacada programme, which treats gambling addiction alongside substance abuse, provides a blueprint.
- Public awareness campaigns: Use grassroots networks, influencers, and schools to educate youth on gambling risks. Uganda’s anti-betting documentaries in local languages offer inspiration.
2. Tackling unemployment: from survival to sustainability
- Revamp education: Align curricula with labor market needs. Expand STEM, vocational training, and digital skills programmes. Ghana’s NEIP (National Entrepreneurship and Innovation Programme) must scale up to reach rural areas.
- Boost agri-tech and green Jobs: Invest in sustainable agriculture and renewable energy. Youth in Agriculture initiatives could help modernize agriculture in the eyes of the youth by providing drones, solar tech training, and export-market access.
- Support SMEs: Offer tax breaks, grants, and low-interest loans to youth-led startups. Rwanda’s Hanga Umurimo scheme, which funds innovative businesses, has slashed unemployment significantly in the Eastern Africa country since 2020.
- Strengthen public-private partnerships: Collaborate with firms like MTN Ghana and Vodafone to create apprenticeship programmes in tech, finance, and engineering.
3. Tackling invisible mental health wounds
- Train community health workers to identify and counsel gambling addicts.
- Integrate mental health education into school curricula to reduce stigma.
- Leverage telemedicine platforms to provide remote counseling for underserved areas.
Scrapping betting taxes is akin to applying a bandage to a broken bone. While it may offer temporary relief, it fails to address the fracture beneath: a system that has abandoned its youth. Ghana’s young people do not lack ambition—they lack opportunity. The same creativity and resilience driving them to bet against the odds can be harnessed to build industries, innovate solutions, and lead national development.
The government must act decisively. Regulate the betting industry with an iron fist. Invest in education, job creation, and mental health with urgency. The stakes could not be higher: without systemic change, Ghana risks losing an entire generation to addiction and disillusionment.
Policymakers, the ball is in your court. Will you double down on empty gestures, or will you bet on Ghana’s greatest asset—its youth?
The Author is the Chancelor of the Wisconsin International University College and immediate past President-General of the West Africa Nobles Forum
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