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The rapid growth of sports betting in Ghana has raised concerns due to its adverse effects on the youth. To stem this tide, the Institute of Community Sustainability has urged the government to increase the current betting tax from 10% to 50%. They argued that this move will curb the rising gambling addiction cases.
In a statement by its Executive Director, Eric Jerry Aidoo, the organization noted its worry about the heavy involvement of young Ghanaians in sports betting. He mentioned that many stake up to 50% of their winnings to win more money, only to lose everything. This cycle of chasing big wins impacts their finances negatively and increases the chances of developing at-risk behaviour.
A Call for Stricter Regulations
Betting is primarily a source of entertainment, but the reality is that it has become a harmful obsession for many youths. Therefore, the Institute of Community Sustainability insists that the government must protect them by adopting stronger regulations. While the proposed 50% increase might seem bold, it is a necessary step in deterring massive participation and assisting individuals with gambling-related issues.
Presently, Ghana has only five psychiatric hospitals, none of which are fully equipped for gambling-related mental health treatment. So, the funds generated could be invested in the establishing rehabilitation centers and awareness programs to educate the public about the risks of addiction.
The President-Elect’s Promise on Betting Tax
During his campaign, the president-elect John Dramani Mahama made this promise:
“First is resetting the economy for prosperity. In the first 120 days in office, we will hold a national economic dialogue to draw up a four-year fiscal consolidation plan. We would rationalize taxes, abolishing among others the obnoxious e-levy, the COVID levy and the 10% levy on bets winning.”
He outlined these plans as part of broader economic reforms, such as eliminating the e-levy and COVID levy. Based on his administration’s taxation stance, an increase in the betting tax is not expected. However, there might be room to reconsider given various concerns about the negative effects of sports betting.
The Societal Impact of Gambling Addiction
The Institute of Community Sustainability believes that if betting remains as accessible as it is today, more young people will fall victim to financial problems. Therefore, imposing a higher betting tax will discourage excessive gambling. The organization also implored the government to introduce policies that prevent betting companies from glamorizing betting to vulnerable individuals in advertisements.
The effects of gambling irresponsibly extend beyond personal financial losses. Some students divert allowances to betting instead of their education, leading to poor academic performances. One of the most concerning societal effects is the potential link between gambling addiction and crime. As youths struggle to recover lost bets, they might employ desperate measures to finance their habits, including theft and robbery.
The Urgent Need for Government Action
The Institute of Community Sustainability joins a list of other organisations calling for government intervention in curbing gambling addiction among young Ghanaians. By implementing a 50% betting tax, they believe the risks posed by the rapid rise of sports betting can be effectively mitigated.
However, if decisive actions are not taken, a significant part of the country’s population will be affected in the long run. As the new administration assumes office, citizens will hope policies are created to protect the youth and promote a culture of responsible gambling.
Source: E-play Africa
