Sizekhaya Holdings remains eligible to secure South Africa’s National Lottery licence after the High Court overturned the award of the fourth licence on procedural grounds.
The Gauteng Division of the High Court in Pretoria referred the decision back to Trade, Industry and Competition Minister Parks Tau, who must reconsider the award in accordance with the court’s directions.
The ruling does not prevent Sizekhaya from receiving the licence again, nor does it direct that the contract should be awarded to Ithuba or another bidder.
Court Gives Minister 12 Months to Reconsider Award
The court suspended its order for 12 months to allow the Minister to review the licensing decision. The period is divided into two six-month stages.
Sizekhaya, which became the National Lottery operator on 1 June 2026, will continue managing the lottery while the reconsideration process takes place.
The company said the judgment does not disqualify it from holding the licence and that its operations will continue without interruption.
“South Africans can be assured that it is business as usual for the National Lottery,” said Sizekhaya Chief Operating Officer Fundi Sithebe.
“Tickets remain available, draws will take place as scheduled and winners will continue to receive their prizes.”
Additional Committee Led to Procedural Unfairness
The court found that Minister Tau had introduced an additional committee into the licence evaluation process, despite it not being included in the original request for proposals.
The committee reassessed the bids using different criteria and made recommendations that subsequently informed the Minister’s decision.
Judges found that introducing the committee and departing from the prescribed evaluation process amounted to procedural unfairness.
However, the judgment did not establish that Sizekhaya had submitted a defective bid or lacked the ability to operate the National Lottery.
Court Rejects Challenge to Sizekhaya’s Funding Arrangements
The court also considered concerns raised about the company’s funding arrangements but rejected the challenge.
It found that the Minister had acted reasonably when relying on financial backing from Sizekhaya’s shareholders and the company’s banking relationship.
The judgment further made no finding of wrongdoing in connection with allegations concerning political connections. It accepted that the Minister had acted in good faith.
Sithebe said the distinction was significant because the court had identified a problem with the decision-making process rather than Sizekhaya’s suitability to operate the lottery.
Minister Must Reconsider Licence Without Additional Committee Report
The licence award has been referred back to Tau, who must reconsider the decision without relying on the additional committee’s report.
Sizekhaya remains among the companies eligible to receive the licence, but the final decision now rests with the Minister.
Sithebe said the judgment clearly identified the procedural issue behind the court’s intervention.
“It does not question Sizekhaya’s ability to operate the National Lottery, and it does not exclude us from being awarded the licence again,” she said.
National Lottery Tickets and Draws Remain Unaffected
Sizekhaya said the court proceedings would not disrupt services for National Lottery players.
Tickets will continue to be sold, scheduled draws will proceed and winners will still receive their prizes.
Friday’s PowerBall and PowerBall XTRA draws have combined guaranteed jackpots of at least R55 million.
The company also confirmed that it would continue fulfilling its responsibilities towards good causes and communities across South Africa.
“The National Lottery is about more than the opportunity to win a prize. It plays an important role in supporting good causes and communities across our country. That responsibility remains unchanged,” Sithebe said.
Sizekhaya said it would maintain its focus on uninterrupted operations, public confidence and the responsible management of the National Lottery while the Minister reviews the licence award.
