Sizekhaya Holdings, a consortium led by Goldrush and KwaZulu-Natal businessmen Sandile Zungu and Moses Tembe, has been awarded South Africa’s fourth National Lottery and Sports Pools licence.
Parks Tau, the Minister of Trade, Industry, and Competition, made this announcement on Wednesday.
The decision, mandated by a Pretoria High Court order, ends a debatable bidding process for the R180-billion tender, set to begin on June 1, 2026, and run for eight years.
The licence transitions from Ithuba Holdings, whose term expires on May 31.
Chinese firm to back transition
Ithuba Lottery, an affiliate company, will operate under a temporary licence from June 1 to May 31, 2026, to ensure continuity while Sizekhaya prepares its infrastructure.
Sizekhaya’s tech partner, Genlot, which operates China’s lottery and holds a 19% global lottery market share, will support the transition, including new ticket sales, equipment, and staff hiring.
The announcement follows months of legal disputes, with bidder Wina Njalo challenging Tau’s delay in naming the winner, alleging favouritism toward Ithuba.
The Lotteries Act prohibits Ithuba Holdings from obtaining another licence after its previous two-year extension.
Tau defended the decision, stating that the selection followed a rigorous evaluation to ensure compliance and capability.
Lotteries commission under scrutiny
Meanwhile, the National Lotteries Commission also faced scrutiny, with the EFF and Build One South Africa (Bosa) demanding transparency, citing Goldrush’s political connections.
“This process must be fair to maintain public trust,” said Bosa leader Mmusi Maimane.
Sizekhaya’s victory has sparked optimism in some quarters.
Sizekhaya aims to modernise games like Lotto and PowerBall, building on Ithuba’s legacy of R13.5-billion in National Lottery Distribution Trust Fund (NLDTF) contributions since 2015.
The public awaits details on how Sizekhaya will enhance player experience and social impact.
The lottery, generating R7.3-billion in 2024, funds prizes (47% of sales) and the NLDTF for community projects.
However, concerns linger about potential disruptions if court challenges persist, which could halt operations for up to a year, affecting charities reliant on NLDTF grants.
