South Africa’s Trade, Industry, and Competition Minister, Parks Tau, stepped in at the last minute to avert a potential shutdown of the National Lottery. This unexpected move followed intense discussions with representatives from the National Lottery Commission (NLC) and Ithuba, the current operator of the lottery.
The crisis was triggered by a ruling from the Gauteng High Court, which stipulated that Ithuba’s operating licence could only be extended for five months. This temporary measure was intended to bridge the gap until Sizekhaya Holdings, the new preferred operator, assumed control. However, the NLC argued for a longer 12-month extension to facilitate a smoother transition. The court, however, sided with the shorter option, prompting concerns of operational instability.
In a surprising announcement during a packed meeting on Saturday, Minister Tau granted Ithuba a 12-month temporary licence, allowing them to continue operating the National Lottery until May 2024. “It was an intense meeting, and the minister recognised the profound economic implications of this situation, noting the number of people dependent on the lottery,” revealed a source close to Tau.
Facing the possible loss of R51 million if compelled to abide by the court’s ruling, Ithuba welcomed the temporary licence, which ensures that all lottery games, draws, and prize payouts will proceed as normal. “As a proudly 100% black-owned South African operator, Ithuba is committed to ensuring integrity and transparency while serving the interests of South Africans,” the company stated, expressing relief at the minister’s decision.
While this agreement provides immediate relief to stakeholders, the long-term future of the National Lottery remains shrouded in uncertainty. Sizekhaya Holdings is set to take the helm in June 2026, but looming questions about the transparency of the licensing process and the potential for further legal challenges cast a shadow over its transition.
During the licence announcement, Minister Tau confirmed that he had received outcomes from the NLC regarding the successful conclusion of negotiations with Sizekhaya Holdings for the Fourth National Lottery and Sports Pools Licence. “I am pleased to announce that I have awarded Sizekhaya Holdings (RF) (Pty) Ltd the licence in terms of section 13 of the Lotteries Act. I wish to thank the parties involved for their timely completion of negotiations,” he remarked.
Despite expressing gratitude for the award, Sizekhaya Holdings chairperson Moses Tembe acknowledged the responsibility that comes with the licence: “When the National Lottery was first introduced after our democracy, its primary purpose was to generate income to support the most vulnerable South Africans. We honour that vision,” said Tembe, who co-owns the company with prominent businessman Sandile Zungu.
Meanwhile, Ithuba expressed disappointment at losing the bid for the licence, citing its substantial investments in lottery infrastructure and significant contributions to social causes over the years. “As a fully South African-owned and black-empowered operator, Ithuba Lottery has laid the groundwork for a robust lottery system, developed specifically for South Africa,” the company reiterated.