How deal was struck to save National Lottery from shutdown
Sizekhaya Holdings is led by a consortium that includes KwaZulu-Natal business figures such as Moses Tembe, former Chairperson of the KZN Growth Coalition, and Sandile Zungu, owner of AmaZulu football club.
Image: Sihle Mlambo/IOL
In tense, last minute discussions at the weekend, Trade, Industry, and Competition Minister Parks Tau intervened to prevent a shutdown of the popular National Lottery.
Tau's intervention came after a high-stakes meeting on Saturday with the National Lottery Commission (NLC) and Ithuba, the current lottery operator.
The situation arose after a Gauteng High Court ruled that Ithuba's operating license could only be extended for five months, until the new operator, Sizekhaya Holdings takes over.
However the NLC had argued that a 12-month temporary license was necessary to ensure a smooth transition, but the court disagreed.
However, in a surprise move, Tau announced that he had granted a 12-month temporary license to Ithuba Holdings, allowing them to continue operating the National Lottery from June 1 until the end of May next year - when Sizekhaya Holdings takes over as the operator.
According to sources close to Tau, the minister promised Ithuba that they would not lose any revenue and would instead make a profit, although the details of how this would be achieved are not clear.
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"It was an intense meeting, and the minister knew what impact it would have on the country's economy given the scale of the tender and people relying on playing the lotto week in and week out," a source said.
Ithuba had argued in court that if they accepted a five-month extension, they would incur a loss of R51 million.
Ithuba has agreed to continue operating the National Lottery, ensuring that all games, draws, and prize payouts will proceed normally.
The company has reassured the public that they will maintain their commitment to integrity, transparency, and the benefit of South Africans.
"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," the company stated on Saturday.
While this agreement provides short-term relief, the long-term future of the National Lottery remains uncertain.
Sizekhaya Holdings, the preferred bidder, is set to take over the lottery in June 2026, but questions remain about the transparency of the licensing process and the impact of further legal challenges.
Announcing the preferred bidder Tau said he had received a report from the NLC regarding the satisfactory conclusion of negotiations with the preferred bidder for the Fourth National Lottery and Sports Pools Licence.
'I am pleased to announce that I have awarded Sizekhaya Holdings (RF) (Pty) Ltd ('Sizekhaya') the licence in terms of section 13 of the Lotteries Act 57 of 1997. As I indicated previously, I intended to announce the successful bidder on 28 May 2025 provided that the licence agreement negotiations with the preferred bidder were successfully concluded. I wish to thank the parties to the negotiations for completing their work in time.
'It is most unfortunate that this matter has already become the subject of litigation and a judgment of the High Court. I am seeking legal advice with a view to appealing against the judgment's findings and orders, and I reserve all my rights concerning this judgment.
'With due respect to the Honourable High Court, my announcement is the result of my undertaking made to the bidders and the Court before the hearing of the application...This ends a long and difficult process of evaluating eight applications for the fourth licence. I appreciate that this has been an enormous and complex endeavour,' Tau said.
On Sunday, Sizekhaya Holdings chairperson Moses Tembe, expressed his gratitude for being awarded the fourth lottery licence by the National Lottery
"We welcome that the honourable Minister of Trade, Industry and Competition, Parks Tau appreciated the power of our vision. When the National Lottery was first mooted after the ushering in of our democracy, the most compelling argument for its existence was income it could generate to help the poorest and most vulnerable of South Africans," said Tembe.
Tembe is a co-owner with Sandile Zungu, the owner of Amazulu Football.
Ithuba had previously expressed disappointment at the decision to award the license to Sizekhaya Holdings, stating that they had invested significantly in developing the lottery infrastructure and had made significant contributions to good causes.
"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," the company stated.
mashudu.sadike@inl.co.za
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