South Africans may wake up on Sunday, 1 June 2025, to a country without a functioning National Lottery after the Pretoria High Court dismissed an urgent application by the National Lotteries Commission (NLC) to extend the temporary operating licence for Ithuba Holdings beyond its expiry on 31 May.
As first reported by GroundUp, the court’s decision leaves the lottery in limbo, with Ithuba Lottery—a sister company of the current operator—refusing to accept a five-month interim licence, calling it financially unfeasible.
Meanwhile, the newly appointed licence holder, Siyakhaya Holdings, requires at least nine months to set up operations, creating a potential nine-month gap in lottery services .
Why the Lottery may stop on Sunday
The crisis stems from a Gauteng High Court ruling last week that declared the NLC’s proposed 12-month temporary licence for Ithuba Lottery unconstitutional, limiting it to just five months. Judge Sulet Potterill found that the process unfairly favoured Ithuba, given its existing infrastructure and close ties to the outgoing operator .
When the NLC appealed, Judge Omphemetse Mooki upheld the decision, stating:
“There is no substantive support that Ithuba Lottery will suffer a loss of R51 million unless it is granted a temporary licence for 12 months. There was complete silence from Ithuba Lottery. It did not file any affidavits.”
He further criticized the NLC for “over-egging the pudding” in its doomsday predictions, adding:
“I do not accept that the sky will fall after 1 June should Ithuba Lottery refuse to sign an agreement to conduct lottery operations.”
Political and financial fallout
The delay in appointing a new operator has sparked accusations of political interference, with critics questioning Siyakhaya’s links to ANC-aligned businessman Sandile Zungu . Meanwhile, Ithuba has lamented the decision, arguing it undermines a locally developed lottery ecosystem that prioritizes small businesses and job creation .
If ticket sales halt, the National Lottery Distribution Trust Fund will rely on R4.3 billion in reserves to sustain good cause funding—though NLC chair Barney Pityana warns this is a stopgap, not a solution .
What happens next?
With Ithuba’s licence expiring tonight, the NLC is in emergency talks to avert a shutdown. Options include:
- Finding an alternative interim operator (though Judge Mooki noted the minister has broader discretion here).
- Expediting Siyakhaya’s takeover—but their nine-month timeline clashes with the court’s five-month limit.
- Legal appeals, though time is running out.
For now, millions of lottery players face uncertainty, and beneficiaries of good causes brace for impact. As the saga unfolds, one thing is clear: South Africa’s lottery system is at a crossroads.
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