The National Lotteries Commission (NLC) has failed in its bid to extend the temporary lottery license beyond five months, raising concerns that ticket sales may stop before Sunday, 1 June.
License Expiry and Legal Challenges
The current lottery operator, Ithuba Holdings, will see its license expire on Saturday, 31 May. Initially, its sister company, Ithuba Lottery, was set to take over operations for twelve months. However, a Gauteng High Court ruling last week deemed the temporary license unconstitutional, limiting it to five months.
Ithuba Lottery has since stated that a five-month license is financially unfeasible, meaning it may not continue operating after Saturday.
Meanwhile, the new license holder, Sizekhaya Holdings, which is set to take over for eight years, has indicated it will need at least nine months to set up operations.
Court Rejects NLC’s Appeal
In response, the NLC applied to extend the temporary license to twelve months, but Judge Omphemetse Mooki ruled against them on Friday.
A source at the NLC revealed that the board is in emergency meetings to determine the next steps. If ticket sales do stop, the National Lottery Distribution Fund still has R4.3 billion in reserves to continue issuing grants to good causes.
Opposition to NLC’s Appeal
The NLC’s urgent application was opposed by Wina Njalo, one of the companies that bid for the lottery license. Wina Njalo argued that the NLC was attempting to relitigate issues already decided by the court and that if five months proved insufficient, the NLC could approach the court at that stage.
The company also accused the NLC of favoring Ithuba Holdings, stating that Ithuba had already made huge profits over the past ten years.
Judge’s Ruling
Judge Mooki emphasized that court interference in previous rulings is rare and found that the NLC failed to justify its case.
“There is no substantive support that Ithuba Lottery will suffer a loss of R51 million unless it is granted a temporary license for 12 months,” he stated.
He also pointed out that the NLC had requested Ithuba Lottery to sign a 12-month agreement; despite knowing it would breach a prior court order.
Additionally, the judge noted that the NLC failed to provide evidence that Sizekhaya Holdings needed more than five months to set up operations.
What’s Next?
With ticket sales potentially stopping after Saturday, the NLC faces mounting pressure to find a solution. Minister Parks Tau, who announced the new lottery license holder just three days before Ithuba’s license expiration, has yet to explain the delays in the process.
The situation remains uncertain, with stakeholders awaiting further developments.
