The North Gauteng High Court in Pretoria has set aside the decision to award the Fourth National Lottery and Sports Pools Licence to Sizekhaya Holdings RF (Pty) Ltd, ruling the licence agreement invalid but suspending the declaration for two consecutive six-month periods.
The ruling, delivered on 2 November 2026, instructs Minister of Trade, Industry and Competition Parks Tau to reconsider the licence award within 12 months. The minister must disregard the previous Ministerial Committee report and recommendations when making a fresh decision.
Despite the court setting aside the award, the National Lottery’s operation will continue uninterrupted during a transitional phase. The court’s suspension of invalidity provides time to manage the process without immediate disruption.
Sizekhaya Holdings was announced as the successful bidder for the Fourth National Lottery and Sports Pools Licence on 28 May 2025 after an evaluation of eight applicants. The licence was intended to replace Ithuba Holdings, which has operated the National Lottery since 2015.
Sizekhaya Holdings is partly owned by JSE-listed gambling group Goldrush Holdings and is led by KwaZulu-Natal businessmen Moses Tembe and Sandile Zungu.
Legal challenges from unsuccessful bidders including Lekalinga and Ithuba Lottery triggered the court battle. These parties questioned the fairness and transparency of the award process, leading to the High Court’s review and subsequent judgment.
Minister Parks Tau acknowledged the judgment, stating, “It is most unfortunate that this matter has already become the subject of litigation and a judgment of the High Court.” He added that he is seeking legal advice with a view to appealing against the ruling while reserving all rights regarding the judgment.
This ruling marks a significant setback in South Africa’s National Lottery licencing process, highlighting ongoing disputes about the award procedures and oversight. It underscores the challenges the government faces in managing a highly lucrative licence valued by some reports at billions in revenue over the contract term.
While the court did not immediately remove Sizekhaya from control, the mandate to reconsider the award within a year places uncertainty on the future operator of the National Lottery. The transitional arrangement aims to avoid disruption to lottery consumers and beneficiaries, who depend on the proceeds for various social causes across the country.
At this stage, it remains unclear when a fresh licence decision will be announced or if Sizekhaya will eventually retain the licence after reconsideration. The Cape Flats News journalist will continue monitoring developments and provide updates as they emerge.