The future of the national lottery remains unclear after the Pretoria High Court rejected an extension for Ithuba.
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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.”
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.
simon.majadibodu@iol.co.za
IOL News