Court showdown looms as Minister promises May decision on SA’s lottery licence
Wina Njalo takes legal aim at Trade Minister over delays, while the fate of South Africa’s fourth National Lottery licence hangs in the balance.
South Africa – The long-awaited announcement of South Africa’s fourth National Lottery licence is now scheduled for May 28, 2025, but the path there is anything but straightforward.
According to GroundUp, Trade, Industry and Competition Minister, Parks Tau, has confirmed the date in court papers filed over the Easter weekend. Yet he stopped short of giving a firm guarantee, warning that circumstances beyond his control could derail the timeline.
In an affidavit filed in the Pretoria High Court, Tau said the court action brought against him by bidder Wina Njalo is now “moot.” But Wina Njalo, a subsidiary of Hosken Consolidated Investments, isn’t backing down. The company has launched a legal challenge seeking to force Tau to announce the winning bidder by May 9 and finalise the licence agreement by month-end.
The courtroom clash, now set to be heard on 5 and 6 May, threatens to expose tensions around the high-stakes licensing process. At the heart of the dispute lies the Minister’s decision to issue a temporary one-year licence, a move Wina Njalo argues unfairly benefits incumbent operator Ithuba.
Tau counters that issuing the temporary licence was a “contingency measure,” necessary to ensure uninterrupted funding for good causes supported by lottery revenue.
“If I am unable to conclude a satisfactory licence agreement by 31 May, then it will be necessary to either extend the bid validity period or cancel the RFP and begin a new,” he said, according to the report.
“This cannot be in the public interest.”
Tau insists the process has been rigorous and transparent, citing the complexity of the evaluation and a desire to distance the current process from past corruption scandals.
“All will be revealed in good time,” he promises.
Bids for the licence
Meanwhile, the National Lotteries Commission is also opposing Wina Njalo’s application. NLC board chair says the volume of bids – eight, instead of the expected four – triggered extensive global site visits and delayed the timeline.
As the legal drama unfolds, the stakes remain high, not just for bidders but for the millions who rely on the lottery to fund community development and charitable programmes across South Africa.
