South Africa’s Lottery will go on after last-minute deal on operator change
Officials made a deal to keep the South African National Lottery and sports pools running. Ithuba Holdings, the current operator, will continue to handle things until the new license holder, Sizekhaya Holdings, takes over. This agreement prevents a possible pause in Lottery activities, which seemed likely after Ithuba’s license ended on May 31.
Competitive tendering process
Sizekhaya Holdings beat seven other candidates to secure an eight-year licence projected to be valued at around R200bn (€9.8bn) over its term. Parks Tau, who serves as the minister to manage trade, industry, and competition, led the process to grant this licence. This makes Sizekhaya the fourth company to operate the Lottery and Sports Pools in South Africa. The licence brings duties such as deciding ticket prices, generating revenue, and managing funds given to social projects.
Licence expiry and legal hurdle
Ithuba got its eight-year licence in 2015. In 2023, officials added two more years due to delays caused by Covid-19, resulting in a rare 10-year term. This extension was to end on May 31. Ithuba Lottery, its sister company, asked for a temporary 12-month licence to bridge the time until Sizekhaya takes over. The National Lottery Commission backed this idea. However, the Pretoria High Court decided that temporary licences could last no longer than five months. Ithuba called a five-month licence “unprofitable,” raising concerns that Lotto draws and sports pools might stop.
Parks Tau’s eleventh-hour move
In an urgent meeting with Parks Tau, the NLC, and Ithuba, the minister approved a short-term 12-month extension to the Ithuba Lottery’s licence, going against the High Court’s decision. This temporary licence runs until May 2026 and keeps Lotto draws running while Sizekhaya gets ready to take over.
Social grants receive support from financial reserves
Money earned from the Lottery supports many social programmes throughout the country. When it seemed like operations might pause, the NLC highlighted that it had R2.2bn in reserves ready to ensure grants would still reach beneficiaries if services were suspended. This money is set aside to support critical areas like education, health, sports, and charity—showing how vital it is to keep the Lottery running without disruptions.
Sizekhaya’s dedication to protecting intellectual property
will continue operating in its current capacity for the next year, but the new operator has already outlined its future vision. Moses Tembe, chairman of Sizekhaya, shared that their proposal promised to return all intellectual property to the government when their licence ends. “We committed to giving the government the intellectual property behind our lottery’s design, development, and execution so they can have the resources to manage the Lotto after our term. This, along with other factors, secured us the contract to operate the Lotto for the next eight years,” he explained.
Planning and industry feedback
The interim license decision has given much-needed clarity, and industry groups are pleased. Retailers, especially those relying on South Africa Lottery sales to draw customers, expressed relief that operations will go on without any interruptions. Individuals benefiting from social programs can also feel confident that funding streams are stable and will remain in place. The promised to collaborate with both Ithuba and Sizekhaya over the next year to ensure a seamless transition. This includes integrating systems, training staff, and informing consumers.
What comes next?
A clear plan now sets the stage for Sizekhaya’s roll-out approach. Over the next eight years, the company has a task to bring fresh ideas to digital platforms, expand its range of games, and boost its role in social good. At the same time, Ithuba will keep running daily operations under the renewed licence, building on its ten years of experience.
To reassure the public, the main point is simple things will carry on as usual. People can expect lotto draws and sports pools to happen without any interruptions. However, behind the scenes, legal and business discussions have worked diligently to ensure smooth continuity. Continues to deliver sure the National Lottery keeps providing both entertainment and funding for good causes as South Africa hands over to its fourth licence holder.
