Sizekhaya Holdings promises to hand over intellectual property once its reign is over
Authorities officially confirmed Sizekhaya Holdings as South Africas fourth national lottery operator. After a competitive and, at times, contentious bidding process, the Goldrush-backed consortium emerged as the preferred bidder for the National Lottery and Sports Pool licence. Among the factors that set Sizekhaya apart was its commitment to hand over its intellectual property (IP) to the government at the end of its licence term.
Intellectual property handover
A central pillar of Sizekhayas winning proposal is the promise to transfer its intellectual property to the state once its eight-year licence expires. By doing so, the government will be able to source and manage lottery operations in-house. Sizekhaya Holdings chairperson Moses Tembe explained the rationale, We have promised to hand over the intellectual property of our lottery design, development, and execution to the government for source capacity to run the Lotto at the end of our tenure. This and many other reasons are why we believe we won the right to operate the Lotto for the next eight years.
This IP handover model guarantees that, at the end of the contract, the government will not need to engage in another open bidding process. It also ensures continuity, as the state will inherit fully developed technology, systems, and processes tailored to South Africas lottery market.
Pros of a state-run lottery
Analysts highlight the advantages of a state-run lottery. Firstly, the direct government control over lotto operations paves the way for transparency and accountability measures. Without the need to contract external operators indefinitely, authorities can implement auditing standards and oversight protocols that meet public expectations.
Secondly, operating the lottery internally allows the government to retain a larger share of revenue. This makes it easier to allocate funds directly to targeted social programmes and community initiatives. South Africa allocates lottery proceeds to good causes, including education, poverty alleviation, and social welfare. By eliminating licence fees and operator profit margins, the state can increase the pool of funding available for these projects.
Lastly, the removal of recurring licence bids will minimise any risk of legal disputes and procurement controversies. The bidding rounds for the national lottery have historically drawn protests and delays. A smoothly managed transition in 2034, at the conclusion of Sizekhayas contract, would mark a departure from past tendering disputes.
Who is Sizekhaya Holdings?
Sizekhaya is a consortium formed by a group of shareholders and a management team with extensive experience across business, gaming, and operations. JSE-listed Goldrush holds a 50% stake in the venture, while Bellamont Gaming and Zungu own the remaining shares. The consortium has already begun setting up structures and establishing infrastructure in preparation for June 2026.
Technology will be supplied by , a Chinese provider selected by Sizekhaya. Tembe emphasised the importance of this partnership, South Africa has hit the jackpot with Sizekhaya. Our vast experience in gaming in the country, along with the brain trust we have assembled, driven by a vision of creating a more enhanced national lottery for good causes, will grow the lottery so more good causes benefit.”
Our choice of technical partner was deliberate as well, as we were determined to minimise the amount of foreign exchange that leaves the country.
By leveraging both local expertise and international technology, Sizekhaya aims to deliver a modern lottery platform. The consortium has pledged to upgrade retail systems, enhance digital channels, and introduce new games designed to boost ticket sales and player engagement.
South Africa’s lottery future
With the licence term lasting eight years, Sizekhaya Holdings will have ample time to roll out its planned improvements. Investors will monitor ticket sales, system uptime, and the performance of the new games. Civil society groups will keep a close eye on fund allocation to charitable causes, while regulators will oversee the handover of IP at the contracts conclusion.
In the meantime, Ithuba will hold on to the lottery licence till May 2026. The government will also continue to receive licence fees and revenue shares under the terms of the current agreement. By 2034, however, South Africa could operate its lottery entirely in-house, eliminating the recurrent bidding cycle. The promise to transfer intellectual property at the end of Sizekhayas tenure will be a critical factor in the lotterys evolution, shaping how future operators or the state itself manage this high-profile public asset.
