NLC welcomes High Court Judgment restraining Ithuba Technology Switch

Johannesburg – The National Lotteries Commission (NLC) has said that it welcomes and endorses the decision taken by the Gauteng High Court on Friday, to interdict and restrain the National Lottery Operator, Ithuba Holdings (Ithuba) from changing their technology partner and gaming platform for the South African National Lottery without the authorization of the NLC.

The NLC is the regulator of lotteries and sports pools in South Africa, and that of the Minister of Trade, Industry and Competition.

In a statement, the NLC said, “The NLC has a statutory duty to maintain, protect, monitor and support the integrity of the National Lottery. This involves continuously assessing and reviewing operations relating to the National Lottery, thus making sure that the interests of stakeholders are not compromised. In line with the Lotteries Act no 57 of 1997, as amended and the National Lottery Operating Licence, NLC receives proposals from the Operator for amendments such as new games, channels of play and amendments to game rules and prize pay-out structures.”

“These proposals are assessed and recommended to the Board, which advises the Minister on approval thereof. In November 2021, following a series of engagements with Ithuba, the NLC filed an urgent interdict against Ithuba over the validity of amendments made to the Lottery Technology Supply and Support Agreement,” the NLC further stated.

The NLC further stated that the judgement handed down by the High Court affirms the authority and responsibilities of the regulator in ensuring the fair and transparent operation of the national lottery as follows:

• Interdicting and restraining Ithuba from giving effect to the amendment to the Lottery Technology Supply and Support Agreement and installing a new system from 1 December 2021; and
• Directing Ithuba to comply with the License Agreement by reverting to the terms of its pre-existing arrangement with the Minister of Trade Industry and Competition.

The NLC said that it remains committed to ensuring South Africa’s National Lottery is a safe and trusted marketplace, by ensuring that systems in place have the necessary assurance in place to safeguard that the interests of participants and the public at large are protected.

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