Ithuba’s lottery licence extension sparks outcry
Under South Africa’s Lotteries Act, an operator’s licence is valid for eight years, with a possible one-time extension of up to two years. Ithuba has already used up this extension option.
South Africa.- The decision of Park Tau, the minister of trade and industry, to award a 12-month lottery extension to Ithuba Holdings has raised concerns about the fairness of the licensing approval process.
Ithuba’s original licence was supposed to end on Saturday, May 31, 2025. However, hours before the contract deadline, the operator was awarded the temporary licence, which allows it to run the South African national lottery for one more year. Many have accused the Department of Trade and Industry of favouritism and lack of transparency with the selection.
Under the Lotteries Act, which governs lottery operations in South Africa, an operator’s licence is valid for eight years, with a possible one-time extension of up to two years. Ithuba has already used up this extension option. The company originally received the national lottery licence in 2015 and, in 2023, was granted a two-year extension.
With the new temporary licence, Ithuba would now operate the lottery franchise for a total of 11 years, three years longer than the original eight-year licence period and one year more than the legal maximum of 10 years.
Contempt of Court?
What’s more concerning for opponents is that Tau carried on with the temporary licence despite two court rulings against the decision. On May 26, the court invalidated Tau’s RFP for a temporary licence and its decision to extend the main licence bid period, determining the process was biased towards Ithuba.
However, the judge’s order invalidating the temporary licence was stayed for five months, enabling the current licence holder to operate until the Sizekhaya Consortium, backed by Goldrush Holdings, takes over the licence.
Following the court’s decision, the NLC applied to vary the judgment but was unsuccessful, creating uncertainty and the possibility of a lottery ticket sales suspension from June 1.
Last-minute maneuver
With a day to go before this reality kicked in, Tau invoked Section 13B of the Lotteries Act, amended in 2015, which grants the minister broad discretion to issue temporary licences. In a statement released on May 31, He said: “It is in the context of both the [earlier] 21 and [Mooki’s] May 30 2025 judgments that I received and accepted the advice from the Commission, that I appoint a temporary licence operator on an urgent basis.”
Tau also noted that he will take the NLC’s unsuccessful appeal to a higher court. While the legal challenge on the temporary lottery licence may not yet be over, one thing is certain – the final decision will not hinder Ithuba from completing its 12-month term as previously agreed upon.
