Introduction
Ghana's gaming industry is experiencing significant growth which presents enormous investment opportunities. One area within the industry that stands out with strong growth potential is casino operations. Entering this market requires familiarity with the legal and regulatory landscape, particularly the Gaming Act, 2006 (Act 721), which governs games of chance in the country. This article offers an overview of the regulations shaping this sector, placing focus on the requirements for establishing and operating a compliant casino business
Regulatory Authorities in Ghana
- The Office of the Registrar of Companies (ORC)
The ORC under the Registrar General's Department (RGD) is responsible for registering and regulating all types of businesses under the Companies Act, 2019 (Act 992). According to the Gaming Act, 2006 (Act 721), businesses in the gaming industry must be incorporated as limited liability companies or companies limited by shares. As outlined in Section 13 of the Gaming Act, the ORC is expected to ensure that any company entering the gaming industry is incorporated as a company limited by shares, which may be private or public.
Section 14 (g) of the Gaming Act requires that the company's ownership structure be partly or wholly owned by a Ghanaian.
An incorporation fee, a filing fee, and a 1% stamp duty on the company's stated capital must be paid to register a company in Ghana. Once the application is reviewed and approved, a certificate of incorporation will be issued out.
- The Ghana Investment Promotion Centre (GIPC)
Section 24 of the GIPC Act, 2013 (Act 865) states that, a company with foreign participation after its incorporation and before commencement of operations must register with the Ghana Investment Promotion Centre (GIPC). Registration with the GIPC comes with several incentives, including investment guarantees, automatic expatriate quotas, the ability to transfer capital, profits, and dividends, etc.
The GIPC sets minimum capital requirements for which companies with foreign participation must meet. For joint ventures (foreign investor with a Ghanaian partner holding at least 10% equity), the foreigner must invest a minimum stated capital of US$ 200,000.00 in cash or capital goods.
Where the company is wholly owned by a foreigner, a minimum capital requirement of US$500,000.00 in cash or capital goods. For trading purposes (purchasing and selling of imported goods and services), a minimum capital 0f US$1,000,000.00 is required.
- The Gaming Commission of Ghana
The Gaming Commission of Ghana is responsible for regulating, controlling, monitoring, and supervising all games of chance in Ghana. To apply for a casino license in Ghana, applicants must have a registered company of which it must be a limited liability company, have an identifiable office, and a registered service mark or logo.
Casino companies must meet the minimum stated capital requirement of US$2,500,000.00. Section 23 of Act 721 states every holder of a license for a game of chance must maintain in its accounts, a minimum bankroll in cash or cash equivalents, proportionate to its paid-up capital and the financial level of its operations.
The Gaming Commission determines the minimum bankroll in a manner it considers sufficient to protect the patrons of the gaming business against defaults in the payment of gaming debts owed by the company.
Additionally, the company must obtain criminal clearance certificates for all directors and submit a tax clearance certificate.
Other Mandatory Authorities
- Ghana Revenue Authority (GRA)
Register with the GRA for tax purposes and obtain a tax clearance certificate. This is to ensure compliance with the law and also contribute to the development of the country.
- Social Security and National Insurance Trust (SSNIT)
The company must register with SSNIT and contribute for their employees' retirement benefits.
- Data Protection Commission (DPC)
The Data Protection Commission regulates the processing of personal information, outlining the procedures for obtaining, holding, using, or disclosing personal data. Casino companies must register with DPC to have a license to be able to collect, use and process personal information and data of individuals. Licenses are renewed annually.
- Metropolitan, Municipal, or District Assemblies (MMDAs)
Business operating permits must be obtained from the local assemblies where the company operates.
- Business Account Opening
Casino companies must open a corporate bank account with the minimum capital requirement. One of the benefits of opening a corporate bank account is the transfer of funds out of Ghana.
Legal Requirements for Casino Companies
- Compliance and Enforcement
Companies must ensure ongoing compliance with all regulatory requirements and also report to the relevant authorities.
- Non-Transferability of License
Section 19 of the Gaming Act, 2006 (Act 721) strictly forbids the transferability of a license and any attempt to transfer the license to another person is an offence. Violators are liable, upon summary conviction, to a fine of not less than five hundred (500) penalty units or a term of imprisonment of not less than two years or both.
- License Renewal
Casino licenses are renewed annually. The Fees and Charges (Miscellaneous Provisions) Regulations, 2023 L.I 2481determine the fees and charges applicable to the Gaming industry in Ghana.
- Casinos are to Operate as Clubs (Section 58 of Act 721)
A licensed casino shall operate as a club and may provide for permanent or temporary membership to individuals, subject to approval by the Gaming Commission. However, children, members of the judiciary including persons in any way serving in a judicial capacity, members of the Armed Forces or members of the Public Service, including the Police Service and service with a regional administration or district assembly, are prohibited from becoming members of the club.
- Display of License (Section 60 of Act 721)
A notice that a casino is licensed under the Gaming Act, 2006 (Act 721) must be prominently displayed in the casino. The notice shall include reference to the games of chance authorised under the license, the maximum percentage of commission to be deducted in play and the odds to be paid as appropriate.
Conclusion
Casino operations in Ghana have a well-defined legal and regulatory framework, offering clear pathway for investors seeking to enter the gaming industry. Ensuring compliance and adhering to the relevant laws and gaming guidelines, is one sure way by which operators can ensure long-term success in the gaming industry.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
