South Africa’s National Lottery is facing the possibility of a nine-month operational freeze, following a bitter legal showdown over the appointment of a new operator and a blocked attempt to issue a temporary licence.
A R180 Billion Gamble on the Line
On 28 May, Trade and Industry Minister Parks Tau named Siyakhaya Holdings as the new operator for South Africa’s National Lottery and Sports Pools. The new eight-year licence is set to replace current operator Ithuba Holdings, whose term ends on 1 June. The announcement followed a competitive bidding process involving eight companies for the R180 billion ($10bn) contract.
However, rather than closing the book, the decision has opened a fresh legal chapter. Questions over Siyakhaya’s political connections, including links to ANC-affiliated businessman Sandile Zungu, have ignited fierce criticism — and court action.
Legal Wrangling Over Temporary Licence
The situation escalated after the government’s attempt to install a one-year interim licence — intended to bridge the operational gap — was challenged in court by Wina Njalo, one of the unsuccessful bidders.
The Gauteng High Court ruled the temporary licence could not exceed five months, a timeframe deemed commercially nonviable by Ithuba, the only operator currently equipped to manage the lottery.
The Department of Trade, Industry and Competition (DTIC) and the National Lotteries Commission (NLC) are now battling in court to overturn the five-month cap, with fears mounting of a nine-month void in lottery operations if no solution is reached.
“If the court does not come to its assistance and extend the suspension period, there will be no lottery operations for at least nine months, from 1 June 2025,” wrote NLC Chairperson Barney Pityana in an affidavit.
The suspension, he warned, could cost R1.8 billion in lost funding for charitable causes.
Judiciary Slams Minister’s Handling
Presiding Judge Sulet Potterill found that Minister Tau’s temporary licence unfairly favored Ithuba and lacked transparency. The ruling cited his failure to justify delays in announcing the new licence award.
Tau countered that he had fulfilled his duty by confirming the winning bidder on 28 May, as promised — but acknowledged he is now considering an appeal.
Who Is Siyakhaya Holdings?
Siyakhaya, led by a consortium including Moses Tembe and Sandile Zungu, is 50% owned by Goldrush Holdings, with additional stakes held by Bellamont Gaming and Zungu himself. The operator will partner with Chinese technology provider Genlot for its systems.
“South Africa has hit the jackpot with Siyakhaya,” said Tembe. “Our experience in gaming, coupled with our commitment to local investment, will create a stronger lottery for the country.”
The group claims its setup phase is underway, with a focus on minimising foreign currency outflows and maximising local economic impact.
Resistance From Ithuba and the Opposition
Ithuba, which has run the National Lottery since 2015, issued a strongly worded response:
“We believe this decision undermines the principles of localisation and inclusive economic growth. Our model prioritises local development, economic inclusion, and accessibility across South Africa.”
Opposition party Economic Freedom Fighters (EFF) accused the Minister of cronyism and state capture, claiming the contract rewards ANC-aligned interests under the guise of due process.
Minister Tau Defends the Appointment
Tau, undeterred by the criticism, defended the integrity of the selection process:
“My announcement is the result of a commitment made to both the bidders and the court. I look forward to increased contributions to the National Lottery Distribution Trust Fund under Siyakhaya’s leadership.”
Still, with legal appeals pending, operational gaps looming, and public trust wavering, South Africa’s National Lottery sits at a critical crossroads — and the clock is ticking.
