Big change to Lotto operations: Will tickets be on sale next week?

The Department of Trade and Industry (DTI) have announced the appointment of a new lottery operator.

Minister Parks Tau confirmed that he had received a report from the National Lotteries Commission (NLC) confirming an agreement with their preferred bidder.

The report on the concluded negotiations was received on Monday, but lottery players are still in the dark as to whether they can panda, pusha, playa next week.

New lottery operator

Eight applications to take over from Ithuba Holdings had been on the table, with the DTI announcing on Wednesday that Sizekhaya Holdings was awarded the nation’s fourth lottery operating licence.

The licence will be for operations for all national lottery games as well as sports pool products.

Spokesperson for the DTI Yamkela Fanisi told The Citizen that the department could not comment on the particulars of the agreement, as that was the NLC’s mandate.

The commencement date of the new licence and the temporary licence duration of the outgoing licence holders have yet to be confirmed after the High Court ruled against Tau’s desire to have the temporary licence run until 31 May 2026.

“It is most unfortunate that this matter has already become the subject of litigation and a judgment of the High Court,” stated Tau.

“With due respect to the Honourable High Court, my announcement is the result of my undertaking made to the bidders and the Court before the hearing of the application,” the minister added.

Temporary license confusion

Ithuba have reportedly been given the temporary licence while Sizekhaya prepares for a prolonged handover.

The temporary licence allowed by the courts is believed to be set to run for five months; however, the new operator requires nine months to prepare.

This overlap is subject to a disagreement between the department, the NLC and the old and new licence operators.

Ithuba’s licence ends on 31 May and the NLC have warned that lottery sales would stop from 1 June if the length of the temporary licence was not adjusted, reported GroundUp.

The NLC told The Citizen on Wednesday that they would be in court on Thursday to receive clarification on the ruling around the temporary licence.

Ithuba disappointed

Following the minister’s announcement, Ithuba said they were “deeply disappointed” that the department would negate their contribution to the country’s lottery infrastructure.

“As a fully South African-owned and black-empowered operator, Ithuba Lottery has invested significantly in developing the first African central lottery system, owned and developed for Africa by South Africans,” stated the outgoing operator.

“This decision disregards the progress made in building a truly home-grown lottery ecosystem that empowers small businesses, drives local job creation, and channels maximum revenue to good causes,” it added.

Ithuba’s legal team will consider the legal implications of the decision before deciding on a way forward.

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