Friday, January 31, 2025

CSOs call on government to reconsider decision to remove betting tax

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Some Civil Society Organisations (CSOs) including the Vision for Accelerated Sustainable Development have called on the government to reconsider its decision to remove the current tax on wins/gains from betting on sports events.

They said the betting tax was not just a revenue-generating instrument, but also as a crucial regulatory mechanism in addressing the growing societal challenges associated with gambling, particularly among the youth.

The remaining CSOs are Ghana NCD Alliance, Jaishi Youth Initiative, Tax Advocacy Network for Health Promotion, Revenue Mobilization Africa (RMA), and Stroke Association Support Network.

The CSOs in a statement signed by Mr Labram Musah, National Coordinator, Ghana NCD Alliance, Public Health Policy Expert and Development Advocate said, “We would 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.”

The statement said according to the World Gambling Statistics, approximately 26 per cent of the global population engaged in gambling activities annually, equating to over 1.6 billion individuals worldwide, adding that online gambling has experienced exponential growth, generating huge revenues with sports betting accounting for a substantial portion of the 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,” it stated.

The CSOs noted that in Ghana, betting has gained alarming publicity and participation, permeating various aspects of the society, stating that, “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.”

The statement said a 2024 report by TGM Research indicated that 41.7 per cent of Ghanaians engaged in sports betting within the past year, with 95 per cent of these bettors favouring 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 per cent of respondents as the primary reason for betting, highlighting how economic pressures drive many people to gamble.

The CSOs noted that betting addiction is having devastating impact on young people and youth advancement across multiple dimensions, saying that the health, social, and economic consequences of gambling were presenting 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 linked to anxiety, depression, and stress, as individuals experience emotional highs and lows from their gambling behaviours leading to intense psychological instability, according to the World Health Organisation” it said.

The statement noted that the chronic stress and financial strain often associated with addiction could 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. 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),” it stated.

The statement said it was heartwarming that the revised Gaming Act banned well-known personalities’ endorsements of gambling platforms to discourage youth and children from betting.

The CSOs have called for 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 statement urged the government to provide accessible gambling addiction support services, including counseling, rehabilitation programmes, dedicated hotlines, and promote public education campaigns on the risks of gambling and available resources for addiction prevention.

“More importantly, the government must sanction or withdraw operator’s license and hold them accountable for unethical practices, such as targeting vulnerable populations including children and young people,” it stated.

It said it was vital that the government recognized 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, considering 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 therefore 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,” the statement said.

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