Court orders South African lottery award reconsideration
South Africa’s High Court has set aside the decision to award the fourth National Lottery and Sports Pools license to Sizekhaya Holdings, directing Minister of Trade, Industry and Competition Parks Tau to reconsider the bids. The court suspended the declaration of invalidity for 12 months, allowing the lottery to continue operating during that process.
Judge Norman Davis delivered the ruling in Pretoria on November 2 following challenges by unsuccessful bidders Ithuba Lottery and Ringeta Consortium. The dispute concerned the minister’s use of an additional committee to reassess applications outside the process established in the request for proposals.
The published judgment describes a procurement framework involving evaluation, adjudication, and a ministerial decision after consultation with the National Lotteries Commission. Ringeta had been recommended as the preferred bidder, with Sizekhaya as reserve. The minister subsequently introduced a separate advisory committee whose recommendations influenced the award.
Lottery operations continue during the review
In its November 3 regulatory disclosure, Goldrush Holdings said the court’s decision rested on a procedural issue: the additional committee had not been provided for in the request for proposals. The minister must reconsider the award without relying on that committee’s report or recommendations. Goldrush said the court accepted that Tau had acted in good faith.
The company also stressed that no adverse findings had been made against Sizekhaya, its shareholders, management, or the quality of its application. “Sizekhaya remains eligible to be awarded the Licence,” the disclosure states. The ruling therefore requires a fresh ministerial assessment rather than automatically transferring the concession to another bidder.
The court allowed six months for a new award decision and a further six months to conclude a replacement license agreement if the minister chooses a different operator. The suspension preserves continuity while those steps are taken. Games, draws, ticket sales, and prize payments continue under the existing operating arrangements.
Sizekhaya received the license on May 28, 2025, and took over lottery management on June 1, 2026. Goldrush’s disclosure identifies its group company as a 50% shareholder in Sizekhaya, with that interest expected to fall to 40% following the issuance of government shares. Sizekhaya is reviewing the judgment with legal advisers; Goldrush said it would disclose material subsequent developments.
