The legal battle over South Africa’s lucrative National Lottery license continues, as former Minister Parks Tau seeks to overturn a recent Gauteng High Court decision that curtailed Ithuba’s operating period.
Background of the Dispute
Judge Sulet Potterill ruled that the decision to grant Ithuba a 12-month temporary license was unconstitutional, unlawful, and invalid. She instead limited the license to five months, to ensure a smoother transition to the new operator, Sizekhaya Holdings, set to take over on June 1, 2026.
Government’s Position
The National Lotteries Commission (NLC) and Parks Tau argued that a 12-month license was essential for financial stability and a viable transition, given the complexity and scale of running the lottery. They claimed that a shorter period would discourage qualified applicants due to high start-up costs.
Tau also contended that the court overstepped its role by interfering with executive functions. He emphasized that early disclosure of the winning bidder would have compromised the integrity of the adjudication process.
Court Findings
However, the court disagreed, concluding that Tau’s issuance of the license and request for proposals (RFP) amounted to administrative action, and was therefore subject to judicial review. It found that Tau and the NLC may have predetermined the outcome of the tender.
Appeals in Motion
- The First Respondent (Wina Njalo) is seeking permission to appeal to the Full Court or the Supreme Court of Appeal, with the hope of overturning the decision and recovering legal costs.
- The NLC has lodged two separate appeals, asserting that the court erred in its interpretation and fairness toward the minister’s role.
What’s at Stake
The National Lottery is considered South Africa’s largest public tender, generating more than R180 billion over the past eight years. The outcome of this legal wrangle will determine who holds the reins—and the revenue—of this high-stakes operation.
