Lotto operations in jeopardy after NLC loses bid to extend temp licence to 12 months
A previous court ruling said that a new temporary licence holder could only be appointed for five months.
Picture: Dylan Nolte/Unsplash
JOHANNESBURG - Lotto operations may be paused indefinitely after the Pretoria High Court dismissed the National Lottery Commission (NLC)'s bid to extend its temporary licence offering to 12 months.
The lottery licence for Ithuba Holdings expires on 31 May, with the company having held it since 2015.
A previous court ruling said that a new temporary licence holder could only be appointed for five months.
Earlier this week, Sizekhaya Holdings was announced as the new lottery operator, however, it's unclear how much transition time it will need to take over the operations.
With Ithuba Holdings' licence expiring on Saturday, its sister company, Ithuba Lottery, was expected to take over on a one-year temporary basis.
However, a court ruling on 21 May limited this to only five months, saying Ithuba could not continue to receive preferential treatment.
However, the National Lotteries Commission said that Ithuba was refusing to sign a five-month temporary contract as it would not be profitable.
The uMkhonto weSizwe (MK) Party’s national spokesperson, Sipho Tyira, welcomed the ruling.
"From the 1st of June 2025, no lottery operations will exist. Machines will be off, revenue will be lost and grants will be halted. This is the price of political patronage, institutional capture and governance by secrecy. The lottery belongs to the people, not to favoured companies, irregularly constituted boards or captured ministers."
The Umkhonto WeSizwe Party has welcomed the ruling, saying Ithuba’s preferential treatment was unlawful.
— EWN Reporter (@ewnreporter) May 30, 2025
The MK Party also raised concerns about what this means for lotto grant beneficiaries.
“This is the price of political patronage, institutional capture,” it said. TCG pic.twitter.com/DymQlijNY1
In his ruling, Judge Omphemetse Mooki said that the sky would not fall if Ithuba was refusing to sign the five-month contract, as the Lotteries Commission had R2.2 billion in reserves to continue paying its grant beneficiaries.