Ithuba Lottery considers legal options as temporary licence decision looms
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Outgoing national lottery operator Ithuba Lottery is considering the legal implications of Minister of Trade, Industry, and Competition Parks Tau's decision to award the operating licence to Sizakhaya Holdings.
Ithuba stated that this decision disregards the progress made in building a truly home-grown lottery ecosystem that empowers small businesses, drives local job creation, and maximizes revenue for good causes.
In response to the decision announced on Wednesday, Ithuba expressed deep disappointment, stating that it undermines the principles of localisation and inclusive economic growth outlined in the Request for Proposal. As a fully South African-owned and black-empowered operator, Ithuba has invested significantly in developing the first African Central Lottery System, owned and developed for Africa by South Africans.
'Ithuba Lottery has the necessary infrastructure, financial resources, and distribution systems to deliver a seamless, secure, and uninterrupted National Lottery. Our game portfolio is locally developed, our operational model prioritizes economic inclusion, and our reach extends across urban and rural communities - ensuring accessibility for all South Africans from day one,' said Ithuba's head of marketing and corporate affairs, Michelle van Trotsenburg.
This comes as the Gauteng High Court is expected to rule on Friday on its previous order compelling the National Lotteries Commission (NLC) to grant a temporary licence to run the national lottery for only five months, as the current licence expires on May 31.
NLC spokesperson and Head of Stakeholder Management and Communication, Rudzani Tshigemane, said the commission awaits the court's decision, which will determine the awarding of the temporary licence and its duration.
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'We expect the court's decision by around 1 pm on Friday, after which we will announce which operator will be awarded the temporary licence, effective from Sunday, June 1, for the duration determined by the court. The operators have indicated that a five-month operating licence is not feasible, so we approached the court to extend the temporary period to 12 months,' Tshigemane said.
In its application to the court, the NLC argued that unless the Gauteng High Court amends its recent order limiting the temporary licence to five months, the temporary licence, set to begin on June 1, is widely expected to be awarded to Ithuba Lottery, a subsidiary of Ithuba Holdings.
Ithuba Lottery has stated that a five-month licence is not financially viable. Meanwhile, Sizakhaya Holdings, announced as the successful bidder to take over from Ithuba after the temporary licence expires, requires at least nine months to prepare, according to an affidavit by NLC chairperson Barney Pityana.
The licence has been the subject of extensive litigation in the Gauteng High Court, initiated by one of the bidders, Wina Njalo. Wina Njalo claimed that Minister Tau favored Ithuba by delaying the announcement and deciding to issue a temporary licence, arguing that only Ithuba has the infrastructure in place to qualify for it.
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