Goldrush Holdings has announced that the recently awarded R180 billion National Lottery License to Sizekhaya Holdings, in which it holds a 50% stake, is being contested by two other bidders in court. During the release of Goldrush’s interim results on Friday, director Jan van Niekerk noted that these legal challenges are ongoing, and shareholders will be updated once a final decision is reached.
Sizekhaya Holdings is set to become the operator of South Africa’s National Lottery starting June 2026, after winning the eight-year license in May 2025. This will replace Ithuba Holdings, which has managed the lottery since 2015. The board of Sizekhaya includes Moses Tembe, Sandile Zungu, Fundi Sithebe, and Dr. Mabatho Mutshekwane. Van Niekerk mentioned that Sizekhaya has made significant progress in setting up the physical, technological, and legal frameworks necessary to manage the National Lottery, with final approval from the National Lotteries Commission expected well before the June 1, 2026, start date.
Goldrush has provided R92 million in funding to Sizekhaya, sourced from internal cash flows and increased bank financing. Currently, all expenses for Sizekhaya are pre-operational, meaning they do not yet affect Goldrush Holdings’ profits, although the capital provided and associated bank debt appear on Goldrush’s balance sheet. Looking ahead to the remainder of its 2026 financial year, Goldrush aims to continue growing the business brand while maintaining the integrity of its operating licenses, increasing revenue per gaming position, managing expenses in line with income levels, and delivering the infrastructure necessary to run the National Lottery.
For the six months ending September 20, Goldrush reported an 11% increase in earnings before tax, reaching R37.7 million, driven by modest growth in its land-based operations and a stronger online business. This performance is set against a relatively stable operating environment compared to the previous year, with slightly lower interest rates but subdued consumer spending. According to Van Niekerk, Goldrush seems to have outperformed its land-based peers based on recent National Gambling Board statistics for 2025, though he noted that online betting has negatively impacted all land-based operations.
Gross gaming revenue for the six months was R936.3 million, an increase of 4% from the same period last year, while revenue from food and beverages, primarily associated with Bingo operations, grew by 10% to R37.5 million. Total income reached the R1 billion mark for the first time, increasing by 5%, and the gross profit from gaming operations also rose by 8% to R565.5 million. A 14% rise in “other operating expenses” was mainly due to higher staff costs and the online business model, which entails increased marketing spending and platform fees as the business grows, and these expenses tend to be higher in the online sector compared to traditional operations.
Notably, no dividend was declared for the period. Meanwhile, headline earnings per share fell by 87.5% to 7.13 cents following the reversal of a deferred tax liability of R52.7 million (or 107.9 cents per share). This change was due to Goldrush ceasing to be an investment entity in the first half of 2025, leading to a shift in accounting policy and the presentation of consolidated financials. Goldrush’s share price closed unchanged at 600 cents on Friday, having dropped from 789 cents at the same time last year.
