Ithuba’s bid to block Sizehaya’s lottery licence fails
The court balanced the commercial risks to Ithuba against the potential loss of revenue for worthy causes, such as education and health programmes, which depend on consistent ticket sales.
South Africa.- The Pretoria High Court has dismissed Ithuba’s urgent application to block the handover of South Africa’s national lottery licence to Sizekhaya Holdings.
According to the presiding judge Ronel Tolmay, Ithuba’s push for an interdict – a temporary order to pause the award – lacked sufficient urgency and failed to outweigh the need to keep lottery services running without disruption.
Tolmay wrote: “It is in the public interest that the lottery should continue uninterrupted. There is nothing before this court to indicate that Sizekhaya is not in a position to comply with its obligations in terms of the licence.”
The ruling clears the way for Sizekhaya to proceed with preparations for taking over operations on June 1, 2026, while Ithuba continues under a temporary extension until then.
Ithuba initiated the legal challenge earlier this year to protect its position after losing the bid for the fourth national lottery and sports pools licence, a five-year contract worth R180bn (€8.7bn). The company, a sister entity to Ithuba Holdings, which has run the lottery since 2015, argued that the award to Sizekhaya violated fair procurement rules under the Lotteries Act.
In its review application, filed on July 4, Ithuba claimed irregularities, including ignored scoring criteria on technical expertise and readiness, unqualified evaluation committee members and unexamined political ties among Sizekhaya’s shareholders.
It sought the interdict on September 1, citing irreparable harm if Sizekhaya embedded its systems before the full review could be heard. The court, however, found the delay in filing the interdict to be self-created. Ithuba had waited for the minister’s reasons for the decision, but the judge noted that it could have launched both actions together, as is common in such disputes.
Despite this, Tolmay addressed the merits of the case to provide clarity, given the high public stakes. She balanced the commercial risks to Ithuba against the potential loss of revenue for worthy causes, such as education and health programmes, which depend on consistent ticket sales, and concluded that the potential impact on these public services was too great to ignore.
The decision leaves Ithuba’s full review pending, with potential remedies still available if irregularities are proven. For now, Sizekhaya can advance its rollout, including retailer onboarding and system upgrades, without legal hurdles.
The company began transition planning in May, right after the award, and has since secured partnerships, including with Chinese lottery technology firm Genlot for ticket systems and staff training.
In a recent release, Goldrush Holdings, the majority stakeholder in Sizekhaya Holdings, confirmed that Sizekhaya is on track to meet the June 2026 deadline, having made good progress in establishing the lottery’s physical, technological and legal frameworks.
