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South Africa court sets aside Sizekhaya lottery award as draws continue

The minister must reconsider the licence decision without an advisory committee's recommendations, while the court has allowed time to protect lottery operations.

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Key Points
The Pretoria High Court set aside the award of South Africa's fourth national lottery licence to Sizekhaya Holdings
The court found that a ministerial advisory committee was outside the published bidding process
The order is suspended for 12 months and Sizekhaya says games, ticket sales and prize payments will continue

South Africa's High Court in Pretoria has set aside the award of the Fourth National Lottery and Sports Pools Licence to Sizekhaya Holdings, leaving the current operator in place while Trade, Industry and Competition Minister Parks Tau reconsiders the decision. 

The judgment was delivered on 2 November following review applications by unsuccessful bidders Ithuba Lottery and Ringeta Consortium.

The court found a procedural flaw in the selection process. Tau had appointed a ministerial committee to advise on the award, but the committee was not provided for in the request for proposals issued to bidders. 

The award was referred back to the minister, who must reconsider it without using that committee's report or recommendations. The ruling reopens the award process rather than naming a replacement operator.

The court suspended the effect of its order for 12 months, giving the minister time to make a fresh decision and, if necessary, arrange a transition. Sizekhaya continues to run the National Lottery during that period. 

Games and draws remain scheduled, while ticket sales and prize payments are unaffected, according to Goldrush Holdings, which has an indirect stake in the operator.

The licence award was announced in May 2025. Goldrush Group owns 50% of Sizekhaya pending the issue of Government shares, after which its holding would fall to 40%. 

Goldrush Holdings owns 59.4% of Goldrush Group, placing the court decision within a publicly disclosed investment as well as a national licence dispute. 

Goldrush Holdings said the judgment made no adverse finding about Sizekhaya, its shareholders, management or the quality of its bid. It said the operator remained eligible to receive the licence after reconsideration. That statement reflects the shareholder's account of the ruling; the final award decision still rests with Tau. 

The court also dismissed a separate application by the Economic Freedom Fighters concerning a provision of the Lotteries Act.

The suspension avoids an immediate interruption to the National Lottery, whose proceeds support public-benefit funding. It also leaves uncertainty over who will hold the licence beyond the review period. 

The minister's next decision will determine whether Sizekhaya keeps the award or whether a different operator and transition plan are required.

In September, South Africa's sports confederation disclosed a R25.67m deficit after National Lotteries Commission funding fell away.

Good to know

Sizekhaya began operating the National Lottery on 1 June 2026 under a licence intended to run for eight years

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