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SA faces looming lottery blackout after Pretoria High Court dismisses Ithuba bid
SA faces looming lottery blackout after Pretoria High Court dismisses Ithuba bid

IOL News

timea day 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.

SA faces lottery blackout after Pretoria High Court dismisses Ithuba bid
SA faces lottery blackout after Pretoria High Court dismisses Ithuba bid

IOL News

time2 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

Ithuba Lottery considers legal options as temporary licence decision looms
Ithuba Lottery considers legal options as temporary licence decision looms

IOL News

time3 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:

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