Latest news with #IthubaLottery
The Herald
a day ago
- Business
- The Herald
Court dismisses NLC's bid to extend temporary licence to 12 months
The Pretoria high court on Friday dismissed, with costs, an urgent application by the National Lotteries Commission (NLC) in which it sought to vary an order made by the court on May 21. Earlier this month, law firm Nortons Inc successfully represented the Wina Njalo Consortium in an urgent review of a number of decisions by the minister of trade, industry and competition Parks Tau in relation to the awarding of the fourth national lottery licence. The May 21 judgment declared the minister's failure to award and issue the fourth lottery licence, as well as his decisions to extend the bid validity period and issue a temporary licence request for proposal (RFP) to be unconstitutional, unlawful and invalid and set them aside. The court suspended the order of invalidity in relation to the issuing of the temporary licence RFP for five months to allow the fourth licensee time to take over the operation of the lottery. The NLC, dissatisfied with the high court's order, launched an urgent application in the same court on Monday to vary the time period of the suspension of the order of invalidity from five months to 12 months. It argued there were new facts or a change in circumstances since the date of the May 21 order. It argued that Ithuba Lottery, which would operate the lottery temporarily, had indicated it would not agree to a five-month contract and, that Sizekhaya, the successful bidder for the fourth licence, required a transition period of nine months to take over the lottery operations.
The Citizen
a day ago
- Business
- The Citizen
You may not be able to get a Lotto ticket after today
'I do not accept that the sky will fall' says judge The National Lotteries Commission (NLC) has failed in its bid to change a recent court ruling limiting the temporary licence to operate the lottery to five months. This means ticket sales may stop before Sunday, 1 June. The current licence, held by Ithuba Holdings, expires on Saturday. After that, their sister company, Ithuba Lottery, was supposed to take over the licence for a period of twelve months. But after last week's Gauteng High Court ruling that the issuing of the temporary licence is unconstitutional and can only be issued for five months, Ithuba Lottery said a five-month licence is financially unfeasible and may not continue operating the lottery after Saturday. And the new licence holder, Sizekhaya Holdings, which is set to take over from Ithuba Lottery for a period of eight years, will need at least nine months to set up its operations. The NLC therefore applied to change the court order to allow a twelve-month licence. But Judge Omphemetse Mooki ruled against them on Friday. Will funding stop? A source at the NLC told GroundUp that the board is in emergency meetings to discuss the way forward. If lottery ticket sales do stop after Saturday, the National Lottery Distribution Fund does still have about R4.3-billion in reserves to continue issuing grants to good causes. The NLC's application, which was heard urgently on Thursday at the High Court in Pretoria, was opposed by Wina Njalo, one of the companies that bid on the lottery licence tender. Wina Njalo argued that the NLC was seeking to relitigate the same issues that had already been heard by the court. If it was found that five months was not enough time, it argued, then the NLC could approach the court at that stage. It said the application to vary the order was yet another example of how the NLC was seeking to favour the Ithuba companies and they were not entitled to insist on making a profit, given that Ithuba Holdings had already made 'huge profits' by operating the lottery for the last 10 years. In his ruling, Judge Mooki said the issue was whether it was just and equitable to extend the period that the temporary licence can operate before it is declared invalid and, in doing so, interfere with the discretion exercised by another court. Such interference was 'very sparingly exercised'. He said he was not persuaded that the NLC had made out a case. 'There is no substantive support that Ithuba Lottery will suffer a loss of R51-million unless it is granted a temporary licence for 12 months. There was complete silence from Ithuba Lottery. It did not file any affidavits,' the Judge said. He pointed to the fact that the NLC on 22 May 2025, when it was aware of Judge Potterill's order, had written to Ithuba Lottery requesting it sign a licence to operate for 12 months. 'It was thus inviting the Ithuba Lottery to sign an agreement that would breach the order made on May 21.' While the NLC had disclosed the response from Ithuba Lottery, it had not disclosed its own letter. ALSO READ: Big change to Lotto operations: Will tickets be on sale next week? 5 months could be long enough Judge Mooki said the NLC had also not put up any evidence that Sizekhaya needed more than five months to set up operations. In fact, as Wina Njalo had pointed out, a condition of the fourth licence was that the successful bidder must be able to operate within five to six months of being awarded the licence. He said in claiming that its reserves would be significantly depleted should there be no operator after 1 June, the NLC had 'over-egged the pudding'. 'I do not accept that the sky will fall after 1 June should Ithuba Lottery refuse to sign an agreement to conduct lottery operations as determined in (Potterill's) order,' he said. The request for proposals for the temporary licence was issued when it became apparent that Minister Parks Tau would not meet the strict deadlines to announce the new lottery licence holder, giving it time to take over operations. He only made the announcement on 28 May, just three days before the expiration of Ithuba's licence. He has yet to provide reasons for the delay. This article originally appeared on GroundUp and was republished with permission. Read the original article here. NOW READ: SIU is not done with NLC yet, as more corruption allegations emerge
IOL News
3 days ago
- Business
- IOL News
Ithuba Lottery considers legal options as temporary licence decision looms
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. Image: Supplied 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. 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 ✕ '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. BUSINESS REPORT Visit:
IOL News
4 days ago
- Business
- IOL News
Ithuba Lottery considers legal action after Sizekhaya Holdings awarded National Lottery licence
iol Ithuba Lottery is contemplating legal action following Sizekhaya Holdings' recent award of the Fourth National Lottery and Sports Pools Licence Image: File Ithuba Lottery says its legal team is considering taking legal action after Sizekhaya Holdings was on Wednesday awarded the Fourth National Lottery and Sports Pools Licence. Effectively, Sizekhaya takes over from Ithuba, who managed the lottery from 2015. "We are expectably deeply disappointed by the recent decision made by the Minister of Department of Trade, Industry and Competition (DTIC) and the National Lotteries Commission (NLC). We believe that this decision undermines the principles of localisation and inclusive economic growth set out in the Request for Proposal," Ithuba said in a statement. It said it has "invested significantly in developing the first African Central Lottery System, owned and developed for Africa by South Africans." Ithuba argued that it has, at its disposal, the necessary infrastructure, financial resources and distribution systems capable of delivering a seamless, secure, and uninterrupted National Lottery. "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. "This decision disregards the progress made in building a truly home-grown lottery eco-system that empowers small businesses, drives local job creation, and channels maximum revenue to good causes," Ithuba said. 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 ✕ [ANNOUNCEMENT] : THE MINISTER OF TRADE, INDUSTRY AND COMPETITION ANNOUNCES THE AWARD OF THE 4TH NATIONAL LOTTERY AND SPORTS POOL LICENSE. — Parks Tau (@TauParks) May 28, 2025 Sizekhaya Holdings' victory is tempered by the undercurrent of legal challenges, as the licensing process has already attracted scrutiny leading to a judgment by the High Court. The DTIC indicated that legal advice is being sought to appeal the ruling, underscoring the complexities entwined in this process. Minister Parks Tau also expressed his commitment to uphold all rights concerning the court's findings, while reiterating his promise to the bidders involved. IOL
