South Africa's Lottery Licence Tender Restarts

The South African High Court has ruled against the award of the Fourth National Lottery licence to Sizekhaya Holdings. Sizekhaya, a majority of which is owned by Goldrush Holdings, received the licence in 2025 following a tender process conducted by Minister Parks Tau. The company took over operations from the previous licence holder, Ithuba, in June 2026.

Ithuba and the Ringeta Consortium, which also took part in the tender, legally challenged the decision. They argued that Minister Tau violated the tender rules by adding an extra step that is not included in the official guidelines. The National Lottery Commission evaluated eight bids and named Sizekhaya as the reserve bidder rather than the preferred bidder. Tau then set up a separate Ministerial Committee, which was not technically part of the official process. The licence passed to Sizekhaya following that committee's reassessment.

The court acknowledged technical irregularities in the process. At the same time, it found that Minister Tau had acted in good faith and noted that there was no adverse finding against Sizekhaya. The court ordered the Ministry to reassess the bids and to disregard the reports and recommendations of the Ministerial Committee. The invalidation order has been suspended for 12 months so that the lottery can continue to operate without interruption.

Sizekhaya said the outcome was disappointing for the company, but the court made no adverse finding against it. The company is reviewing the ruling with its legal advisers. In the meantime, the lottery will continue, with ticket sales through retail and digital channels, draws held as scheduled, payments to winners, and contributions to charitable organisations. Goldrush Holdings said it would inform its shareholders of material developments.