In a major development affecting South Africa’s National Lottery, the Pretoria High Court has ruled against the National Lotteries Commission’s (NLC) application to extend Ithuba’s operating licence. The decision emphasised strict adherence to the Lotteries Act. However, in a parallel move, the Minister of Trade, Industry and Competition, Parks Tau, stepped in to issue a temporary lottery licence to Ithuba Holdings, ensuring continuity of service.
High Court Rejects Ithuba Operating Licence Extension
Ithuba Holdings, which has managed the National Lottery since 2015, was at the centre of the NLC’s request to extend its licence. The NLC argued that a further extension was necessary to avoid disruption in operations while the bid for the fourth National Lottery licence is still in progress.
However, the High Court determined that the Lotteries Act permits only one non-renewable extension of up to 24 months. Since Ithuba had already received such an extension in 2023 under former Minister Ebrahim Patel, any further extension would be unlawful. The ruling highlighted the importance of following established legal processes in managing the National Lottery.
Minister Grants Temporary Ithuba Operating Licence
Despite the court’s ruling, Minister Parks Tau granted Ithuba a temporary operating licence for 12 months starting 1 June 2025. The temporary licence was awarded through a closed bidding process to pre-approved applicants, with Ithuba being the only bidder positioned to continue operations without interruption.
According to the minister, the temporary licence was a necessary step to ensure the uninterrupted functioning of the National Lottery, which plays a critical role in funding charitable and developmental causes through the National Lotteries Distribution Trust Fund.
“We needed to ensure that the National Lottery continues without interruption. This temporary licence is a practical solution to a time-sensitive challenge,” explained Minister Tau.
You can read the full report from SABC News here.
Legal and Industry Reactions
The temporary issuing of the Ithuba operating licence has stirred concerns among competing bidders and legal experts. Wina Manje Consortium, one of the other contenders for the upcoming lottery licence, has questioned the fairness of the closed bid process, suggesting it may favour Ithuba unfairly due to its current operational infrastructure.
Critics argue that the urgent nature of the temporary licence, combined with tight submission deadlines and high capital requirements, discouraged new operators from participating. This has raised concerns about transparency and fair competition.
However, the Department of Trade, Industry and Competition maintains that all legal processes were followed, and the decision was in the public interest.
Implications for Lottery Players
For millions of South Africans who participate in the National Lottery, the temporary Ithuba operating licence provides reassurance that lottery draws, payouts, and funding for community programmes will continue as usual. The minister’s intervention has prevented what could have been a significant service disruption.
Still, questions remain regarding the long-term future of the National Lottery. The process of selecting the operator for the fourth licence is still incomplete, and stakeholders are urging greater transparency and urgency from both the NLC and the Ministry.
Final Thoughts
The High Court’s decision against extending the Ithuba operating licence underscores the need for strict compliance with statutory regulations. Simultaneously, Minister Tau’s move to grant a temporary licence reflects a practical solution to maintaining an essential public service.
As the country awaits a final decision on the next long-term National Lottery operator, the temporary arrangement offers stability while keeping public and industry expectations in check. Ongoing scrutiny from legal experts, industry players, and the public will be vital to ensuring that the final awarding of the licence is handled transparently, fairly, and in accordance with the law.
Also Read: Lotto Ticket Sales at Risk as Ithuba’s Licence Nears Expiry on 31 May
