Sizekhaya's Lotto future uncertain after court sets aside licence award

The National Lottery will continue its operations as usual despite a court ruling nullifying the license awarded to Sizekhaya Holdings. The decision followed legal challenges from unsuccessful bidders Ithuba Lottery RF and Ringeta Consortium RF, who argued that Sizekhaya was improperly awarded the Fourth National Lottery and Sports Pools Licence.

The court criticized the Ministerial Committee process used by Trade, Industry and Competition Minister Parks Tau to reassess the bids, which deviated from the original tender procedure. Consequently, the licence was set aside and returned to Tau for reevaluation within a 12-month timeframe. For the time being, Lotto players can expect normal ticket sales, scheduled draws, and prize payouts under Sizekhaya Holdings' management.

The court's suspension of its order allows the Minister 12 months to reassess the licence decision, deciding whether Sizekhaya should retain it or a different bidder should be appointed. If a new operator is chosen, an additional six months will be allocated for the transition to prevent any disruption to lottery operations. The Economic Freedom Fighters (EFF) expressed satisfaction with the ruling, calling it a vindication of their consistent opposition to Sizekhaya's appointment.

They highlighted their long-standing concerns about alleged conflicts of interest within the National Lotteries Commission's evaluation structures and the connections between these members and Goldrush Consortium, Sizekhaya's primary shareholder.