In a significant ruling, the Gauteng High Court has dismissed an emergency application by Ithuba Holdings, the operator of South Africa’s National Lottery since 2015, to extend its operating licence from five to twelve months.

The decision, announced today, Friday, follows a May 21 judgment by Judge Sulet Potterill, who declared the temporary licence extension unconstitutional and unlawful, citing procedural delays by Trade, Industry and Competition Minister Parks Tau.

Ithuba, which has been hailed as Africa’s top-performing lottery operator, argued that a shorter five-month extension would result in a R51 million loss and potentially halt ticket sales after May 31, 2025.

This, in turn, could disrupt the National Lotteries Commission’s (NLC) ability to fund social causes. However, Wina Njalo Proprietary Limited, a rival bidder, contested Ithuba’s claims, pointing to the company’s substantial profits over the past decade and questioning the need for an extended licence.

The court also noted the NLC’s R4.3 billion reserve, which could sustain grants even if lottery operations were temporarily paused.

Amidst this legal backdrop, Minister Tau announced on May 28, that Sizekhaya Holdings has been awarded the fourth National Lottery and Sports Pools Licence. The consortium, led by KwaZulu-Natal businessmen Moses Tembe and Sandile Zungu, includes a 40% stake held by Goldrush Group. Fundi Sithebe, former CEO of 4Racing, has been appointed as a non-executive director, bringing her extensive experience in regulated industries to the consortium’s strategic initiatives

As the deadline looms, all eyes are on the NLC and the incoming operator to ensure the lottery’s legacy of social upliftment endures.

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