South Africa Court Invalidates Sizekhaya’s National Lottery Licence
South Africa.- 4 November 2026 | www.zonadeazar.com The High Court of South Africa has ruled that the decision to award the Fourth National Lottery licence to Sizekhaya Holdings, a company majority-owned by Goldrush Holdings, was invalid.
The ruling follows procedural irregularities identified in the 2025 tender process, during which Trade, Industry and Competition Minister Parks Tau awarded the licence to the consortium.
However, the court suspended the invalidity order for 12 months, allowing Sizekhaya to continue operating the lottery while the licensing decision is reconsidered.
Court Challenges the Licence Award Process
The dispute emerged after Sizekhaya secured the licence to operate South Africa’s National Lottery.
The decision was challenged by Ithuba, the previous lottery operator, and Ringeta Consortium, another participant in the tender process.
Both parties argued that the Minister had introduced an additional assessment stage that was not included in the original bidding rules.
The High Court accepted the procedural challenge and ordered the licensing decision to be reconsidered.
Eight Bidders Participated in the Tender
The original process involved eight bidders, whose proposals were assessed by the National Lotteries Commission (NLC).
Following this assessment, Sizekhaya was classified as a reserve bidder rather than the preferred applicant.
Minister Parks Tau subsequently established a separate ministerial committee to reassess the competing bids.
This additional stage, which was not part of the official tender process, ultimately resulted in Sizekhaya being awarded the licence.
The court determined that the introduction of this procedure represented a technical defect in the adjudication process.
Sizekhaya Can Continue Operating for 12 Months
Despite the ruling, Sizekhaya will temporarily retain responsibility for operating the National Lottery.
The court suspended the invalidity order for one year to prevent disruption to the service.
During this period:
- Lottery ticket sales will continue.
- Retail and digital distribution channels will remain operational.
- Draws will take place as scheduled.
- Winners will continue receiving their prizes.
- Contributions to good causes will be maintained.
The decision is intended to preserve operational stability while the authorities address the procedural deficiencies.
Minister Ordered to Reconsider the Bids
The High Court has instructed Parks Tau to reassess the bids submitted during the original tender process.
The Minister must disregard the reports and recommendations produced by the ministerial committee whose involvement was challenged.
The review must therefore proceed without relying on the findings of that additional assessment stage.
The ruling does not automatically determine which company will ultimately hold the licence.
The final outcome will depend on the renewed administrative assessment and any applicable legal procedures.
No Adverse Findings Against Sizekhaya
An important element of the judgment is that the court made no adverse findings against Sizekhaya regarding the allegations examined.
The court also recognised that Minister Parks Tau had acted in good faith.
The invalidity decision was based on technical deficiencies in the licence award process rather than a finding of misconduct by the company.
Sizekhaya emphasised this distinction in its public response to the ruling.
Sizekhaya Responds to the Judgment
Following the announcement, Sizekhaya expressed disappointment with the outcome while highlighting the absence of adverse findings against the business.
The company explained that the judgment concerned a technical issue in the licensing process and that the matter had been referred back to the Minister for reconsideration.
Meanwhile, Goldrush Holdings confirmed that Sizekhaya is reviewing the judgment with its legal advisers.
The group stated that shareholders would be informed of any material developments.
Licence Operations Began in June
Sizekhaya began operating South Africa’s National Lottery in June 2026, following the licence award in 2025.
The company took over operations from the previous licence holder, Ithuba.
Since then, it has been responsible for lottery ticket distribution, scheduled draws and obligations associated with operating the national service.
The temporary suspension of the invalidity order allows these activities to continue while the licence award is reviewed.
Industry Impact and Next Steps
The judgment represents a significant development in South Africa’s National Lottery licensing process.
Although the award has been declared invalid, operations will continue temporarily to protect players and prevent disruption to funding for good causes.
With a 12-month period allowing the licensing decision to be reconsidered, South Africa must review the award of its Fourth National Lottery while Sizekhaya continues operating and Goldrush Holdings assesses the legal implications of the ruling.
The next step will be the Minister’s reassessment of the original bids without relying on the disputed committee’s recommendations.
Edited by: @fonta
