Sizekhaya still in the running for National Lottery licence following High Court ruling
· The South African
Sizekhaya Holdings remains in the running to secure South Africa’s National Lottery licence after the High Court set aside the award of the fourth licence over procedural unfairness.
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The company, which took over as National Lottery operator on 1 June 2026, will continue running the lottery while Trade, Industry and Competition Minister Parks Tau reconsiders the licence award.
Time to reconsider the decision
The court suspended its order for 12 months, divided into two six-month periods, to give the Minister time to reconsider the decision.
Sizekhaya has stressed that the ruling does not disqualify it from holding the licence and that National Lottery 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.”
Why the National Lottery licence award was set aside
The Gauteng Division of the High Court in Pretoria found that the Minister had introduced an additional committee into the licence evaluation process.
The committee was not provided for in the original request for proposals. It reassessed bids, applied different criteria and produced recommendations that informed the Minister’s decision.
The court found that this departure from the prescribed process was procedurally unfair.
However, the judgment did not find that Sizekhaya’s bid was defective or that the company was unfit to operate the National Lottery.
The court also rejected a challenge to Sizekhaya’s funding arrangements, finding that the Minister had acted reasonably in relying on financial backing from the company’s shareholders and its banking relationship.
It made no finding of wrongdoing concerning allegations of political connections and accepted that the Minister had acted in good faith.
Sithebe said the distinction was important, arguing that the judgment identified an irregularity in the Minister’s decision-making process rather than questioning Sizekhaya’s ability to run the lottery.
Could Sizekhaya still get the National Lottery licence?
The court referred the licence award back to Minister Tau for reconsideration, without relying on the additional committee’s report.
Sizekhaya remains eligible to receive the licence again. The judgment does not direct that it be awarded to Ithuba or any other bidder.
The responsibility for reconsidering the award now rests with the Minister, who must follow the court’s directions.
“The judgment is clear that the award must be reconsidered because of a procedural irregularity in the Minister’s decision-making process,” said Sithebe.
“It does not question Sizekhaya’s ability to operate the National Lottery, and it does not exclude us from being awarded the licence again.”
National Lottery draws to continue
The legal proceedings will not affect National Lottery players, Sizekhaya said.
Tickets will remain on sale, draws will take place as scheduled and winners will continue to receive their prizes.
Friday’s PowerBall and PowerBall XTRA draws have combined guaranteed jackpots of at least R55 million.
Sizekhaya also said it would continue meeting its obligations to support 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,” said Sithebe.
The company said its focus remained on operational continuity, public confidence and the responsible management of the lottery while the Minister reconsiders the licence award.