Business

Ithuba Mulls Legal Action as Sizekhaya Wins SA National Lottery Licence

Published

4 months ago

May 29, 2025

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South Africa’s National Lottery is heading for a potential legal showdown. Ithuba, the long-time operator of the lottery since 2015, has announced it is weighing legal action after Sizekhaya Holdings was named the new licence holder by the Department of Trade, Industry and Competition (DTIC) and the National Lotteries Commission (NLC).

The handover of the Fourth National Lottery and Sports Pools Licence, announced on Wednesday, marks the end of an era for Ithuba. But the company isn’t letting go quietly.

In a strongly worded statement, Ithuba expressed “deep disappointment” with the decision, saying it goes against the government’s own localisation and inclusive growth goals. “We’ve made significant strides in building a proudly South African lottery ecosystem,” the company said. “Our central lottery system was developed locally by South Africans, for South Africans.”

According to Ithuba, its operations have successfully integrated urban and rural communities, supported small businesses, and driven job creation—all while ensuring secure and accessible gameplay nationwide.

The company also highlighted its ability to provide seamless lottery services thanks to its existing infrastructure, financial strength, and distribution network. It fears the transition may compromise the progress made over the last decade.

Meanwhile, Sizekhaya Holdings’ win is already drawing scrutiny. The licensing process is under legal review, following a recent High Court ruling that cast doubt over aspects of the selection process. Minister of Trade and Industry Parks Tau acknowledged the concerns and confirmed that legal advice is being sought to potentially appeal the ruling. He reiterated his commitment to a fair process and to addressing the legal complexities involved.

With both the outgoing and incoming licence holders facing legal uncertainty, the future of the National Lottery appears to be entering a tense period.

Whether Ithuba’s challenge succeeds or not, one thing is certain: the battle for South Africa’s lottery billions is far from over.