The Pretoria High Court has set aside Trade, Industry and Competition Minister Parks Tau's May 2025 decision to award the fourth National Lottery licence to Sizekhaya Holdings. The lottery continues to operate for now.

Judge Norman Davis declared the licence agreement invalid, but suspended that declaration for 12 months. The minister has six months to decide afresh who should get the licence. If it does not go to Sizekhaya again, a further six months is allowed to negotiate a new agreement and put transitional arrangements in place.

What the court found

The review was brought by the unsuccessful bidders Ithuba Lottery, the current operator, and the Ringeta Consortium. The National Lotteries Commission's adjudication committee had recommended Ringeta as preferred bidder, with Sizekhaya as reserve. Tau then appointed a ministerial committee, which recommended Sizekhaya as preferred bidder and Ithuba as reserve.

The judge found that the minister was not entitled to create a committee outside the request for proposals that ran a parallel process and re-evaluated the bids without the bidders' knowledge. He also found that the minister's reasons often followed the committee's recommendations word for word. The court ordered the minister to exclude the committee's report when he reconsiders.

The judge also noted that, up to the hearing, "no report of such investigation had featured in the [court] papers". That was a reference to the probe Tau had asked the Commission to run into alleged family links between people linked to Sizekhaya and Deputy President Paul Mashatile.

The court dismissed a separate application by the EFF, which sought to bar political office bearers from holding direct or indirect financial interests in bidders. The judge said that would require changes to the law. The EFF pays its own costs.

Reaction

Sizekhaya said it was disappointed with the outcome but that the court had made no adverse findings against it on any of the grounds raised. Ithuba said the judgment "vindicates our stance" that the award must be guided by fairness, transparency and accountability, and that it was reviewing the ruling with its lawyers. Tau has maintained that the committee was only there to help him assess concerns already before him and that its report was not determinative.

What it means for players

Sizekhaya's licence remains operational for now. Tickets remain on sale, draws are going ahead and winners are being paid, according to the operator.

What we do not yet know

  • Whether Sizekhaya, the minister or the National Lotteries Commission will appeal.
  • How the Commission and the EFF will respond to the ruling.
  • How the minister will approach the fresh decision.