South African Court Overturns National Lottery Licence Award but Allows Operations to Continue

The Pretoria High Court has set aside the award of South Africa's fourth National Lottery licence to Sizekhaya Holdings, citing procedural irregularities. However, the operator can continue running the lottery while the government reconsiders the decision.

South Africa's National Lottery faces renewed regulatory uncertainty following a High Court ruling on November 2 that invalidated the decision to award its fourth operating licence to Sizekhaya Holdings.

Judge Norman Davis ruled that Minister of Trade, Industry and Competition Parks Tau had relied on recommendations from a ministerial committee that was not provided for in the original tender process.

The court found that this additional evaluation procedure was inconsistent with the procurement framework and ordered the licensing decision to be reconsidered without using the committee's report.

The judicial review followed challenges brought by unsuccessful applicants Ithuba Lottery and Ringeta Consortium.

The ruling also declared the licensing agreement between the minister, the National Lotteries Commission and Sizekhaya invalid.

However, the court suspended the declaration of invalidity for two consecutive six-month periods to prevent disruption to lottery operations.

The first six months will allow the minister to reconsider the award. The second period is intended for negotiating a replacement agreement and managing a transition if Sizekhaya is not selected again.

Sizekhaya, which took over lottery operations in June 2026, will therefore continue operating during the reconsideration process.

The court did not find that Sizekhaya's application was itself fraudulent or technically inadequate, and the company remains eligible to receive the licence again.

The case raises important questions about procurement transparency and oversight of major gambling concessions. The next decision will determine whether Sizekhaya retains the contract or South Africa prepares for another change of national lottery operator.