Trade, industry & competition minister Parks Tau has stepped in to avoid a shutdown of the popular national lottery, in a high stakes move that boils down to his interpretation of two Pretoria high court judgments.
This as SA faced the prospect of not having a lottery for at least a year, with the preferred bidder for the fourth licence, Sizekhaya only set to take over the running of the lottery in June 2026.
One of the losing bidders, Wina Njalo has opposed the issuing of a temporary licence , saying this was an illegal move by Tau.
The Pretoria high court last month agreed with Wina Njalo, declaring unlawful the request for proposal for a 12 months’ licence , but suspended this order for five months in a bid to keep the lottery operational without interruption.
The National Lotteries Commission (NLC) went back to court last week, asking the country to extend the suspension of the order for 12 months, as the preferred bidder for the temporary licence, Ithuba was not willing to operate the lottery for just five months, as that would be a loss making exercise.
The court on Thursday declined this application, sending Tau and the NLC into crisis mode as the Ithuba licence lapsed on Saturday night.
Tau on Saturday said he had agreed with the NLC to grant Ithuba a 12 months temporary licence, arguing that he believed the decision aligned with the spirit of the court orders.
“I take issue with the judgment of the high court of May 21 2025 which found that the temporary licence request for proposal (RFP) for a temporary licence was not valid and have appealed this judgment,” Tau said in a statement.
“However, in its judgment of May 21, the court accepted that it is in the public interest that the national lottery should continue to operate to raise revenues to fund worthy good causes notwithstanding that the court was not satisfied with the RFP process,” he said.”
“Additionally, another court affirmed my power to appoint a temporary licensee in its judgment of May 30 2025 by stating as follows: “It would be a surprise to the court that the minister is unable to appoint an operator, on a temporary basis, for a whole year. This is more so because the minister has more latitude in appointing a temporary operator, as opposed to a fully licensed operator.”
One of the arguments the NLC put forward was that a lull in the lottery for an extended period would deplete the reserves of the National Lottery Distribution Trust Fund to R1.79bn [excluding VAT).
It funds good causes around the country, and is one of the biggest supporters of NGOs.
“After careful consideration and prioritising the interests of South Africans, Ihuba has reached an agreement with the minister of trade, industry & competition and the National Lotteries Commission to operate the national lottery, ensuring its ongoing contribution to good causes,” Ithuba said in a statement.
“As a proudly 100% black-owned South African operator, Ithuba remains steadfast in its commitment to operate the national lottery with integrity, transparency, and for the benefit of South Africans. Participants can rest assured that all games, draws, and prize payouts will continue as normal — with the same exciting jackpots and seamless service that they are accustomed to.”
Meanwhile, Sizekhaya chair Moses Tembe has given a glimpse on how the company plans to operate the lottery.
“We will be reducing the number of draws but increasing the size of the jackpot, which will increase the odds of winning. And we will be bringing back scratch cards and a more enhanced focus on sports pools,” he said.
Sizekhaya is half owned by JSE-listed Goldrush. Business Day understands its appointment will be challenged in court, with several bidders preparing court documents to have the appointment declared unlawful.
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