South Africa’s lottery faces suspension as operator decision looms

South Africans may soon face a suspension of national lottery ticket sales as the government prepares to announce a new long-term operator, accorfing to GroundUp. 

Trade, Industry, and Commerce Minister Parks Tau has reversed his earlier plan to issue a temporary licence, instead confirming he will name the winner of the eight-year lottery contract by 28 May 2025.

The decision comes just weeks after the minister floated the idea of a 12-month interim licence, which has now been scrapped. With current operator Ithuba’s licence expiring on 31 May, the lottery could face an operational gap if a new provider is not immediately ready to take over.

The announcement follows a court application by one of the bidding consortiums, Wina Njalo, which accuses Tau of deliberately delaying the process to benefit Ithuba. The group, backed by the HCI Foundation, filed an urgent case in the Pretoria High Court last week, demanding that the minister finalize the licence before 9 May and conclude negotiations by 31 May.

Despite Tau’s latest move, Wina Njalo plans to proceed with its legal challenge, arguing that the minister’s handling of the process has been "irrational and unconstitutional."

Industry insiders warn that even if a new operator is named, a suspension of ticket sales is likely.

"It takes six months to transition between operators," one bidder told GroundUp. "The new operator needs time to set up hardware, software, and data centres before going live."

If Ithuba is not reappointed, the lottery could face disruptions while the successor prepares its systems. However, the National Lotteries Commission (NLC) has assured that grants for social causes will continue, funded by its R4.3-billion reserve.

Remind that the bidding process has been mired in delays. The RFP for the fourth licence was announced in August 2023, with submissions due by February 2024. Yet, 14 months later, no decision has been made—far longer than previous licence awards.

With the court hearing set for 22 April, the future of South Africa’s lottery remains uncertain. If Tau sticks to his new deadline, the country will know its next operator by 28 May—but whether ticket sales will continue uninterrupted remains to be seen.

For now, lottery players may need to brace for a potential pause in games, while legal and logistical battles play out behind the scenes.