Sizekhaya Holdings Disappointed as High Court Sets Aside National Lottery Licence Award

Court Ruling on Lotto Licence Leaves Sizekhaya Holdings Disheartened

Sizekhaya Holdings has voiced its disappointment after the North Gauteng High Court in Pretoria set aside the awarding of the Fourth National Lottery and Sports Pools Licence previously granted to the company. Despite this significant legal development, the company emphasized that the National Lottery will continue to function without disruption.

Details Behind the Court Decision

The judgment was delivered in response to review applications brought by competitors Ithuba Lottery RF (Pty) Ltd and Ringeta Consortium RF (Pty) Ltd. These companies had challenged the process and decision to award Sizekhaya Holdings the lucrative licence.

Sizekhaya stressed, however, that the court made no adverse findings against it on any of the grounds raised by the review applicants. Instead, the ruling focused on a technical aspect of the licence awarding process. The matter has now been returned to Minister of Trade, Industry and Competition, Parks Tau, who has been directed to reconsider the awarding of the licence.

What Happens Next for the National Lottery?

The court’s ruling nullifies the appointment of Sizekhaya Holdings as the operator and declares the existing licence agreement invalid. Nonetheless, the judgment carefully considered the public interest. To protect that interest, the court suspended its declaration of invalidity for two consecutive six-month periods. This ensures the National Lottery remains operational and that no gap occurs in the provision of services or funding to organisations that rely on lottery proceeds.

Minister Tau now has 12 months to reconsider the licence award. His fresh decision must ignore the previous report and recommendations of the Ministerial Committee involved in the challenged process.

Assurance of Ongoing Operations

Sizekhaya Holdings sought to reassure all stakeholders from ticket buyers to beneficiaries that all aspects of the lottery will go on as usual during this interim period. The company confirmed that players can continue to purchase tickets, participate in scheduled draws, and claim prizes without disruption.

The court expressly suspended its order in recognition of the public interest, including the reliance of organisations like old-age homes and children’s facilities on the National Lottery Distribution Trust Fund.

Such funding supports a wide range of good causes across South Africa, underlining the broader importance of maintaining seamless lottery operations.

Background: Challenge to the Fourth Lottery Licence

The path to this point began when Sizekhaya Holdings was announced as the successful bidder in May 2025. The company assumed control of South Africa’s National Lottery on June 1, 2026. However, legal challenges from unsuccessful bidders soon followed, culminating in the current High Court decision.

Commitment to Integrity and Good Causes

In its response, Sizekhaya reiterated its dedication to managing the National Lottery transparently and with integrity, emphasising its goal of maximising contributions to communities and charitable organisations across the country.

The Way Forward

The coming year will see Minister Tau undertake a fresh review and make a new determination on the National Lottery licence. Meanwhile, continuity and stability for South African lottery participants and beneficiaries are assured through the court’s order to suspend any interruption in operations.

This court decision highlights both the complexity of regulatory processes around national licences and the need to balance procedural matters with the public’s ongoing interest in uninterrupted services and continued support for good causes.