iol South Africa at risk of lottery shutdown after court rejects Ithuba's plea
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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.”
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.