Minister of Trade, Industry and Competition Parks Tau intends to decide on the successful applicant and negotiate a lottery licence agreement before the current licence expires at the end of May
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Trade, Industry and Competition Minister Parks Tau has announced that he will decide on the successful bidder for South Africa’s fourth lottery licence by the end of May 2025.
This comes as the current operator, Ithuba Holdings, prepares to transition out after a ten-year tenure, which has been extended by two years under former minister Ebrahim Patel.
In responding to parliamentary questions from ANC MP Lufefe Mkutu, Tau confirmed he did not intend to cancel the bid for the fourth licence and begin it anew.
“The extension of the third lottery licence will terminate on 31 May 2025,” he said, adding that no further extension was permissible as the law made it clear that an extension was “non-renewable”.
Tau explained that the National Lotteries Commission (NLC) had issued a Request for Proposal (RFP) for the fourth lottery licence in August 2023.
“The proposals in response to this RFP were evaluated by an evaluation committee appointed by the NLC and an adjudication committee, which is composed of the members of the board of the NLC,” he said.
Tau said after consideration of the relevant reports and meetings with, among others, the NLC’s board, he could not determine the successful applicant because he had several issues of concern.
“There were areas that needed further assessment and evaluation. I have put in place a process of further assessment,” he said.
“I intend to decide on the successful applicant and negotiate a licence agreement with it before the extension of the third licence expires, that is 31 May 2025. I do not intend to cancel the bid for the fourth licence and begin it anew,” added Tau.
However, the minister said should the process of further assessment not be completed by 31 May or the successful applicant cannot begin operations on June 1 because of insufficient time for the handover, he has considered two contingency plans to prevent an interruption to the operation of the lottery.
Tau has requested the NLC to make arrangements for him to appoint a temporary licence, which empowers him to appoint any person or organ of state, for a non-renewable period not exceeding 24 months, to conduct the national lottery on appropriate terms and conditions.
“The NLC has now issued the RFP for the temporary licence to the applicants for the fourth lottery licence. The NLC will evaluate the bids for the temporary licence.”
Tau added that he has indicated his intention to extend the bid validity period for the fourth lottery licence by 12 months from 31 May 2025 to 31 May 2026.
“There is no section in the Lotteries Act that empowers me to extend the bid validity period for the fourth licence. However, I am entitled to extend it in terms of the provisions of the RFP,” he said.
Tau also said he was awaiting the applicants’ responses before finally deciding whether to extend the bid validity period.
“While I intend to finalise the awarding of the fourth licence by 31 May 2025, I have, as contingency measures, indicated my intention to extend the fourth licence’s bid validity period and have arranged for the issuing of a temporary licence in terms of section 13B of the Lotteries Act.”
mayibongwe.maqhina@inl.co.za
