South African lottery licence decision delayed by minister Parks Tau

Minister of Trade, Industry, and Competition, Parks Tau, has postponed the announcement of a winning bidder to operate South Africa's National Lottery following the expiration of the current operator, Ithuba’s, licence in May 2025.

Ithuba’s licence, initially set to expire in May 2023, was extended for two years by Tau’s predecessor, Ebrahim Patel, at the request of the newly-appointed board of the National Lotteries Commission (NLC). The extension provided additional time for a comprehensive review of the licensing process.

The Minister highlighted key criteria, including promoting local economic development and broad-based black economic empowerment. He also emphasized that no political party or office-bearer should have any direct financial interest in the applicants.

Minister Tau noted that the decision to delay the licence announcement stems from the need to protect the integrity of the process and address outstanding issues. He confirmed ongoing consultations with the National Lotteries Commission and National Treasury to determine the best path forward.

The Portfolio Committee on Trade, Industry, and Competition, chaired by Mr. Mzwandile Masina, welcomed Minister Tau’s decision to delay the announcement to ensure the credibility of the process. Masina emphasized the importance of transparency, fairness, and adherence to the Lotteries Act 57 of 1997 in awarding the fourth National Lottery licence.

Masina suggested exploring alternative options should awarding the new licence become impractical before the expiration of Ithuba’s tenure. These options include issuing a temporary licence under Section 13B of the Lotteries Act or implementing a state-led lottery as stipulated in Section 13A of the Act.