Ithuba Lottery claims the minister’s decision showed 'inadequate due diligence'.
The battle over South Africa’s national lottery licence is heating up, with Ithuba Lottery becoming the latest party to head to court to challenge the government’s decision to award the contract to Sizekhaya Holdings.
Trade, Industry and Competition Minister Parks Tau announced in May that Sizekhaya had won the multi-billion-rand tender, emerging ahead of other bidders.
The new operator is set to begin running the national lottery and sports pool from 1 June 2026, under an eight-year licence.
This came after Ithuba Holdings, which has managed the lottery since 2015, saw its licence lapse on 31 May.
That licence had already been extended once beyond its original 2023 deadline.
Tau later granted another temporary licence for 12 months to Ithuba Holdings, but a legal challenge by rival bidder Wina Njalo resulted in a reduction of the period to five months.
Ithuba Lottery’s urgent court application
Ithuba Lottery — a sister company to Ithuba Holdings — has now launched proceedings in the Gauteng High Court in Pretoria.
Its case follows a similar application brought by another unsuccessful bidder, Lekalinga.
The company wants the court to interdict the minister, Sizekhaya, and the National Lotteries Commission (NLC) from moving ahead with the fourth lottery licence.
After requesting reasons from Tau, Ithuba Lottery rejected his explanation, arguing that it “blatantly disregards” one of the requirements for a successful bid.
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The company further claimed the minister’s decision showed “inadequate due diligence” and amounted to non-compliance with the Lotteries Act.
“Notably, the minister’s oversight disregards significant issues about Sizekhaya’s alleged political affiliations,” Ithuba Lottery said in a statement.
The company has contended that Sizekhaya was effectively given a year’s grace period before taking over operations.
This, according to Ithuba Lottery, breached the request for proposals (RFP), which required bidders to have financing and operational readiness in place to ensure a seamless transition.
The company added that the evaluation process was “flawed” and prejudiced from the beginning.
“We are confident that the court will thoroughly examine the legality and fairness of the minister’s decision.”
Delays and allegations
The tender has been plagued by controversy.
Tau’s announcement of the winning bidder was delayed, forcing the minister to grant a temporary licence.
While some bidders objected, Ithuba Lottery was the only one to apply for it.
Once the extension period was cut from 12 months to five, Ithuba Lottery abandoned the bid, saying the shortened term would result in a loss of R51 million and was no longer viable.
Concerns have also surfaced over Sizekhaya’s ownership.
Deputy President Paul Mashatile’s sister-in-law, Khumo Bogatsu, is a shareholder in the company.
There are also concerns that KwaZulu-Natal (KZN) businessmen Moses Tembe and Sandile Zungu, key figures in Sizekhaya’s main shareholder Goldrush, maintain close connections with the ANC and the MK party.
Tau assured Parliament in June that the alleged political affiliations would been investigated.
Meanwhile, NLC Commissioner Jodi Scholtz defended the award, explaining that Sizekhaya had been chosen because it has the capacity and infrastructure.
The consortium initially proposed a five-month transition plan, later extended to nine months to align with the temporary licence.
Scholtz told MPs this was regarded as the most viable option.
