Lotto & PowerBall | Sizekhaya licence overturned – what now?
· The South African
The Gauteng High Court in Pretoria has overturned the decision to award South Africa’s National Lottery licence to Sizekhaya Holdings.
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The court ruled on Monday, 2 November, that Trade, Industry and Competition Minister Parks Tau must reconsider the awarding of the Fourth National Lottery and Sports Pools Licence.
It also declared the agreement between Tau, the National Lotteries Commission (NLC) and Sizekhaya invalid.
However, the court suspended the declaration of invalidity for 12 months, allowing lottery operations to continue while the minister reconsiders the award.
Why did the court overturn the licence?
Judge Davis found that the process used to award the licence was procedurally unfair.
The case centred on a ministerial committee appointed to reassess bids after the NLC had completed its evaluation.
The committee conducted a separate assessment that was not provided for in the original bidding process and applied different criteria when evaluating applications.
The court ordered Tau to reconsider the award without relying on the committee’s report or recommendations.
He has six months to make a fresh decision, with another six months allowed for negotiations and a transition should the licence go to another operator.
Will Lotto and PowerBall draws continue?
Sizekhaya can operate under the existing agreement while Tau reconsiders the licence award.
The company took over the National Lottery from Ithuba Holdings on 1 June 2026 after securing the eight-year licence in May 2025.
Its appointment prompted legal challenges from unsuccessful bidders who questioned the selection process.
Ithuba Lottery welcomed Monday’s judgment, saying the appointment of a lottery operator must follow a fair and transparent process.
The company said it was reviewing the ruling with its legal representatives.