South Africa National Lottery dispute deepens as losing bidders take legal action

The fight over South Africa’s R100 billion national lottery licence has intensified as two unsuccessful bidders demand explanations from Trade, Industry and Competition Minister Parks Tau, while another has launched a legal challenge to overturn the awarding of the licence to Sizekhaya Holdings. According to Sunday Times report, the National Lotteries Commission (NLC) and Minister Tau have already suffered five court defeats related to the tender process and are now under increasing pressure to justify their decision.

On Friday, the NLC withdrew its latest appeal, reportedly anticipating another court loss. The appeal related to a previous ruling that found the awarding of a 12-month temporary licence to current operator Ithuba to be unlawful. The Pretoria High Court, presided over by Judge Sulet Potterill, said the interim licence process lacked fairness and transparency. Although the court suspended the invalidity for five months to ensure continuity, Potterill also found that the delay in awarding the full licence amounted to a failure by Minister Tau to act.

Meanwhile, losing bidders Ringeta and Ithuba have submitted formal requests to the minister, seeking reasons for his decision to appoint Sizekhaya Holdings. A third bidder, Lekalinga, has taken legal action to review and set aside the decision. Vladimir Vukovic, founder of Lekalinga, alleges in court papers that Tau failed to assess indirect financial interests, in violation of the National Lotteries Act. Vukovic claims that Sizekhaya and one of its major shareholders, Gold Rush, share the same registered address, which he argues signals a potential conflict of interest.

Vukovic has also raised concerns about the delay in announcing the winning bidder last December. At the time, Minister Tau cited “further evaluation” as the reason, but gave no specific explanation. Vukovic argues that the winning bidder is unlikely to meet the operational requirements outlined in the tender.

NLC spokesperson Rudzani Tshigemane confirmed that the commission had withdrawn its most recent appeal, expecting the court to rule against them once again. Despite this, the NLC maintains that the prior court rulings were incorrect. As legal pressure mounts, the future of the country’s national lottery remains in limbo, with unsuccessful bidders continuing to demand transparency and accountability in the licensing process.