Gambling company Ithuba Lottery has welcomed a high court ruling overturning the award of the fourth National Lottery and Sports Pools Licence to Sizekhaya Holdings, describing the judgment as a victory for fairness, transparency and accountability in the licensing process.
On Monday, the court set aside the decision to award the licence to Sizekhaya Holdings RF and declared invalid the licence agreement concluded between Trade, Industry and Competition Minister Parks Tau, the National Lotteries Commission (NLC) and the preferred bidder.
In his judgment, Gauteng High Court Judge Norman Davis found significant flaws in the tender process.
The court ruled that government relied on an unlawful review process that effectively re-evaluated bids outside the original tender rules. A ministerial committee established after the official evaluation process introduced additional assessment criteria, reassessed bidders and recommended Sizekhaya, despite the Ringeta Consortium being the highest-ranked bidder. The court concluded that this resulted in a procedurally unfair process.
Process found to be flawed
While declaring the licence award invalid, the court suspended its ruling to prevent disruption to lottery operations and funding for charities and other good causes.
The first six-month suspension allows Tau to reconsider the licence award and make a fresh determination. The court also ordered the NLC and Sizekhaya to pay the legal costs of unsuccessful bidders Ithuba Lottery RF and Ringeta Consortium RF.
Should the licence ultimately not be awarded to Sizekhaya, a further six-month suspension period will allow for negotiations, the conclusion of a new licence agreement and the implementation of transition measures to ensure uninterrupted lottery operations.
The ruling follows a legal challenge by Ithuba, which has operated the National Lottery since 2015 and argued that the licensing process failed to comply with legal and regulatory requirements.
Call for fairness and transparency
Responding to the judgment, Ithuba said the ruling validated its long-standing position that the appointment of a National Lottery operator must be conducted in a fair, transparent and accountable manner.
“The judgment vindicates ITHUBA’s stance that the appointment of the South African National Lottery operator must be guided by the principles of fairness, transparency and accountability, and must comply with the applicable legal and regulatory framework.”
Ithuba added that it was reviewing the judgment with its legal team to assess the implications for the business and determine its next steps.
The operator reaffirmed its commitment to protecting the integrity of the National Lottery and said further updates would be provided as developments unfold.
The judgment creates fresh uncertainty around the future of the licence process and places responsibility on the minister to determine the way forward within the court-mandated timeframes. The Department of Trade, Industry and Competition and the National Lotteries Commission are expected to consider the ruling and decide on their next course of action.
- Gambling company Ithuba Lottery has welcomed a high court ruling overturning the award of the fourth National Lottery and Sports Pools Licence to Sizekhaya Holdings, describing the judgment as a victory for fairness, transparency and accountability in the licensing process.
- On Monday, the court set aside the decision to award the licence to Sizekhaya Holdings RF and declared invalid the licence agreement concluded between Trade, Industry and Competition Minister Parks Tau, the National Lotteries Commission (NLC) and the preferred bidder.
- In his judgment, Gauteng High Court Judge Norman Davis found significant flaws in the tender process.
- The court ruled that government relied on an unlawful review process that effectively re-evaluated bids outside the original tender rules.
- A ministerial committee established after the official evaluation process introduced additional assessment criteria, reassessed bidders and recommended Sizekhaya, despite the Ringeta Consortium being the highest-ranked bidder.
