The North Gauteng High Court in Pretoria has set aside the decision to give Sizekhaya Holdings the Fourth National Lottery and Sports Pools Licence. The judgment was delivered on Monday, 2 November 2026.
The court declared the licence agreement invalid. The agreement was between Trade, Industry and Competition Minister Parks Tau, the National Lotteries Commission (NLC) and Sizekhaya.
The court did not stop the lottery. It suspended its order for two periods of six months each. This gives the minister time to decide again, and keeps the National Lottery running in the meantime.
The case was brought by two bidders who lost out, Ithuba Lottery and Ringeta Consortium. They questioned whether the process that picked Sizekhaya was fair and legal.
The dispute centred on a Ministerial Committee that Tau appointed to look at the bids again. He set it up after the NLC had already finished its own evaluation.
The NLC had ranked Ringeta Consortium first with 73.92 points. Sizekhaya came second with 72.95 points. The Ministerial Committee used different weightings and recommended Sizekhaya as the preferred bidder.
The court found that the extra committee was not part of the original Request for Proposals. Bidders were also not told that a second evaluation would take place.
According to the judgment, adding this process was procedurally unfair. The court said it was an unlawful use of the minister’s powers.
Tau must now make a fresh decision on the licence. He may not rely on the report or recommendations of the Ministerial Committee.
The first six months give the minister time to reconsider the award. If he does not give the licence to Sizekhaya, the second six months allow for talks with another operator. That period also covers a new licence agreement and a handover.
Sizekhaya Holdings said it was disappointed with the ruling. The company told players, retailers and beneficiaries that National Lottery operations would carry on as normal.
The company said the court made no adverse findings against Sizekhaya, its shareholders, its management or the quality of its bid. It said the judgment dealt with a procedural issue in the award process.
Sizekhaya confirmed that tickets will stay on sale, scheduled draws will go ahead and prizes will still be paid out.
The company said the suspension of the order protects groups that depend on lottery funding. It named old age homes and children’s homes as examples.
Sizekhaya was named the winning bidder in May 2025. Eight applications were evaluated for the licence.
The eight-year licence started on 1 June 2026. Sizekhaya replaced Ithuba, which had run South Africa’s National Lottery since 2015.
According to IOL, people linked to the company include KwaZulu-Natal businessmen Moses Tembe and Sandile Zungu, who owns AmaZulu Football Club. The company is also partly owned by JSE-listed Goldrush Holdings.
Under the court order, Tau must make his new decision on the licence within the 12-month suspension period.
Source: this article is based on reporting by Bona. Image: Bona. Written with the help of AI and published by the Tzaneen Voice Entertainment desk. See our Editorial Standards.
Rirhandzu Baloyi writes about entertainment for Tzaneen Voice. Rirhandzu covers South African music, film, TV, streaming, awards and celebrity news, from amapiano and local soapies to Showmax and Netflix releases. Stories stick to what happened, who was involved and when fans can watch or listen.