By Johnatahan Paoli
Just hours before the expiration of Ithuba Holdings’ licence, Trade, Industry and Competition Minister Parks Tau confirmed a last-minute deal to extend the company’s stewardship of South Africa’s National Lottery operations for another year.
In a strongly worded response to the court’s earlier ruling, Tau emphasised that the public interest remained paramount, despite disagreeing with the earlier May judgement.
“I take issue with the judgment of the High Court of 21 May, which found that the Temporary Licence Request for Proposal (RFP) was not valid and have appealed this judgment. The court accepted that it is in the public interest that the National Lottery should continue to operate to raise revenues to fund worthy causes notwithstanding that the court was not satisfied with the RFP process,” he said.
The move ensures no disruption to lottery services, amid a legal and administrative scramble over the future of the multibillion-rand industry.
Tau announced that a 12-month temporary licence agreement had been signed with Ithuba Holdings (Pty) Ltd, effective from June, securing the continuity of lottery and sports pool operations until new licensee Sizekhaya Holdings takes over on 1 June next year.
The announcement follows a turbulent week of court battles and conflicting legal interpretations over who had the authority to manage the interim phase between the third and fourth National Lottery licences.
On 21 May, the Pretoria High Court ruled that the temporary licence RFP process was invalid, casting doubt over Ithuba’s potential return.
However, a subsequent judgment on 30 May affirmed the minister’s power to make a temporary appointment under section 13B of the Lotteries Act.
Tau’s decision has drawn sharp criticism from civil society organisations.
Tebogo Sithathu of United Civil Society in Action reacted with shock, saying the deal with Ithuba contradicted the very concerns raised by the courts.
“This is a betrayal of proper process and transparency. If the RFP was found invalid, how can the same operator be granted a licence without a fresh, open process?” Sithathu asked.
Ithuba’s appointment as temporary operator comes just days after Tau named Sizekhaya Holdings as the fourth permanent National Lottery licensee.
Eight companies had reportedly vied to succeed Ithuba, whose 10-year tenure officially ended on 31 May.
Tau stated that the one-year extension would allow for a managed transition and safeguard ongoing funding for charitable and development initiatives.
“I am pleased that the National Lottery operations will not be interrupted during the transition from third to fourth licence operations and that worthy causes will continue to receive support,” Tau said.
Ithuba, for its part, responded to the news with mixed emotions.
While welcoming the opportunity to continue operations in the interim, the company expressed disappointment over being overlooked for the long-term licence.
“As a fully South African-owned and black-empowered operator, Ithuba Lottery has invested significantly in developing the first African central lottery system, owned and developed for Africa by South Africans. This decision disregards the progress made in building a truly home-grown lottery ecosystem,” the company stated.
Ithuba added that its legal team was reviewing the decision to explore possible recourse, signalling that the matter may not yet be settled.
Despite the legal uncertainty and public controversy, the department assured South Africans that all national games, including Lotto, PowerBall and SportsPools, would continue without disruption.
As the transition period begins, all eyes will be on Sizekhaya Holdings’ preparations to assume full operational control in June 2026.
Meanwhile, questions remain over the transparency of the selection process and the role of legal oversight in South Africa’s evolving lottery landscape.
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