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IOL News
3 days ago
- Business
- IOL News
SA faces looming lottery blackout after Pretoria High Court dismisses Ithuba bid
iol South Africa at risk of lottery shutdown after court rejects Ithuba's plea Image: File South Africa may soon experience a temporary lottery blackout, following a significant ruling from the Pretoria High Court that dismissed the National Lotteries Commission's (NLC) urgent application to extend Ithuba Holdings' operating licence beyond its impending expiry on May 31. The court's decision raises serious uncertainty about the future of the national lottery, a vital service that supports numerous community initiatives across the country. On Thursday, IOL News reported that Ithuba, the current operator tasked with managing the national lottery, is now evaluating its legal options in response to the recent decision taken to award the next operating licence to Sizakhaya Holdings. Ithuba has voiced its concern that this decision undermines the considerable advancements it has made in creating a locally focused lottery ecosystem, one that prioritises small business growth, job creation, and maximising revenue for charitable causes. The company expressed particular discontent in a statement released earlier this week, indicating that Tau's decision goes against the principles of localisation and inclusive economic growth detailed in its Request for Proposal. As a fully South African-owned and Black-empowered entity, Ithuba has heavily invested in the development of an African Central Lottery System that is both owned and designed by South Africans to serve the continent. 'Ithuba Holdings has the necessary infrastructure, financial resources and distribution systems to deliver a seamless, secure and uninterrupted National Lottery,' stated Michelle van Trotsenburg, Ithuba's head of marketing and corporate affairs. She added, 'Our game portfolio is locally developed, our operational model prioritises economic inclusion, and our reach extends across urban and rural communities, ensuring accessibility for all South Africans from day one.' Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Judge Omphemetse Mooki presided over the case, pointing out the deficiencies in the NLC's claims. Mooki argued that the commission's assertion indicating that there would be no lottery operator for a full year following Ithuba's exit was exaggerated, stating, '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.' He also emphasised that the minister holds broader discretion in selecting a temporary operator compared to a permanent one, asserting, 'I do not accept that the sky will fall after June 2025 should Ithuba Holdings refuse to sign an agreement to conduct lottery operations as determined in the order of May 21, 2025.' Mooki concluded that the NLC had failed to substantiate its case for the relief sought. Ultimately, while Mooki acknowledged the urgency of the application, he ruled against it, ordering both the National Lotteries Commission and Ithuba to shoulder the legal costs, including those associated with three counsel.
IOL News
3 days ago
- Business
- IOL News
SA faces lottery blackout after Pretoria High Court dismisses Ithuba bid
The future of the national lottery remains unclear after the Pretoria High Court rejected an extension for Ithuba. Image: Supplied South Africa may face a brief lottery blackout after the Pretoria High Court dismissed the National Lotteries Commission's urgent application to appoint Ithuba as a temporary operator beyond its May 31 license expiry. On Thursday, IOL News reported that Ithuba, the outgoing operator, is considering the legal implications of Minister of Trade, Industry and Competition Parks Tau's decision to award the next operating license to Sizakhaya Holdings. Ithuba said the decision disregards the progress it has made in building a home-grown lottery ecosystem that supports small businesses, drives local job creation and maximises revenue for good causes. In a statement released on Wednesday, Ithuba expressed deep disappointment, saying the decision undermines the principles of localisation and inclusive economic growth outlined in the Request for Proposal. As a fully South African-owned and Black-empowered company, Ithuba has invested significantly in developing the first African Central Lottery System, owned and developed by South Africans for Africa. 'Ithuba Holdings has the necessary infrastructure, financial resources and distribution systems to deliver a seamless, secure and uninterrupted National Lottery,' said Michelle van Trotsenburg, Ithuba's head of marketing and corporate affairs. '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.' Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ However, Judge Omphemetse Mooki said the commission 'over-egged the pudding' in its application. 'Its claim on reserves is based on there being no operator of the lottery for a period of 12 months,' Mooki said. '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.' He added that Tau has broader discretion when appointing a temporary operator compared to a fully licensed one. 'I do not accept that the sky will fall after June 2025 should Ithuba Holdings refuse to sign an agreement to conduct lottery operations as determined in the order of May 21, 2025,' he said. Mooki also said that Tau's affidavit in support of the application lacked substance. 'The relief being sought engages a power which the court is to exercise very sparingly,' he said. 'The commission has not made out a case for the relief it seeks.' Mooki ruled that the application was urgent, but ultimately dismissed it. Both the applicant, the National Lotteries Commission and the first respondent were ordered to pay legal costs, including the costs of three counsel. IOL News
