South African Court Overturns National Lottery Licence Award

The dispute concerns an eight-year licence awarded to Sizekhaya Holdings on 28 May 2025. The operator subsequently took over South Africa’s National Lottery on 1 June 2026.

Unsuccessful bidders Ithuba Lottery and Ringeta Consortium challenged the award, questioning the fairness and legality of the selection process.

Judge Norman Davis found that Tau had appointed an additional ministerial committee to reassess applications despite the original tender documents making no provision for such a process.

The committee conducted a separate evaluation and recommended Sizekhaya as the preferred bidder, departing from the rankings produced through the established assessment procedure.

Judge Davis said:

New evaluations were performed with the use of new consultants which resulted in new rankings and preferences of bidders.

The court concluded that the parallel evaluation was procedurally unfair and directed the minister to reconsider the competing bids without using the additional committee’s report.

According to a regulatory announcement published through the JSE’s SENS platform, the court suspended its order for 12 months, allowing lottery operations to continue while the minister reconsiders the licence award.

Although the court declared the licence agreement between Sizekhaya, the minister and the National Lotteries Commission invalid, the order will not take immediate effect.

The suspension gives the minister an initial six months to reconsider the award. A further six months allows time to negotiate a replacement agreement and arrange a transition if the court selects another bidder.

Sizekhaya will continue operating the National Lottery in the meantime. Ticket sales, scheduled draws and prize payments remain unaffected.

The court also made no adverse findings against Sizekhaya’s shareholders or management, leaving the company eligible for reconsideration.

The decision raises important questions about transparency and procedural consistency in gambling licence allocations.

South Africa has separately strengthened licensing oversight through its National Gambling Board verification portal, although that initiative operates independently of the lottery dispute.

Licensing scrutiny is also increasing internationally. The UK’s National Audit Office is reviewing the Fourth National Lottery Licence, while the Netherlands continues examining the legal framework surrounding monopoly gambling licences.

For lottery operators and prospective licence applicants, the South African ruling highlights the importance of transparent tender procedures and consistent evaluation criteria.

Attention now turns to Tau’s reassessment and whether Sizekhaya will retain the licence or another bidder will be selected.