NLC says National Lottery will remain operational during licence review

The commission says the court’s decision did not challenge the substantive considerations behind the minister’s original licence award.

Key takeaways:

• South Africa’s National Lottery will keep operating without interruption after a High Court ruling overturned the award of the fourth licence to Sizekhaya Holdings.
• The Gauteng High Court suspended its order for 12 months, giving Trade, Industry and Competition Minister Parks Tau time to reconsider the award.
• The November 2 judgment set aside the decision on procedural grounds, but the NLC says the court did not challenge the substantive considerations behind it.
• The NLC board will advise the minister under Section 10 of the Lotteries Act, 1997, while he awaits legal advice on how to respond.

South Africa.- The National Lotteries Commission (NLC) has confirmed that South Africa’s National Lottery will continue operating without interruption following a High Court judgment that overturned the award of the Fourth National Lottery and Sports Pools Licence to Sizekhaya Holdings.

In a statement issued on November 4, the NLC said the Gauteng High Court had suspended its order invalidating the licence agreement for 12 months, allowing Trade, Industry and Competition Minister Parks Tau to reconsider the licence award.

The November 2 judgment set aside the minister’s decision to award the licence to Sizekhaya Holdings RF (Pty) Ltd on procedural grounds and referred the matter back to him for reconsideration. However, the NLC said the court had not challenged the substantive considerations underlying the minister’s decision.

The NLC added that the minister had initiated consultations with the commission and was awaiting legal advice before deciding how to respond to the judgment. Under Section 10 of the Lotteries Act, 1997, the NLC is responsible for advising the minister on the issuing of the National Lottery licence. Its board will fulfil this statutory function by advising the minister on the matter.

Meanwhile, the NLC said players, retailers and beneficiaries could continue participating in and benefiting from the National Lottery during the reconsideration period. The commission reaffirmed its commitment to transparency, accountability and good governance, which it said were essential to maintaining public confidence in the National Lottery. It also pledged to communicate further updates when necessary.