South African High Court Sets Aside Sizekhaya Lottery Licence Award, Operator Keeps Running

The Gauteng High Court in Pretoria on 2 November 2026 set aside Minister Parks Tau's May 2025 decision to award the Fourth National Lottery and Sports Pools lottery licence to Sizekhaya Holdings, while suspending its order for 12 months so the lottery keeps operating.

Judge Norman Davis also declared invalid the licence agreement between the minister, the National Lotteries Commission (NLC) and Sizekhaya. The review was brought by two losing bidders, Ithuba Lottery and the Ringeta Consortium. Sizekhaya took over the lottery on 1 June 2026 under an eight-year licence, replacing Ithuba, which had run it since 2015.

What the court decided

The court sent the existing bids back to the minister, not to a new tender. Tau must reconsider them afresh and disregard the report of the ministerial committee he appointed during the process.

The invalidity declaration is suspended for 12 months, split into two six-month periods. The sequence is set out below.

The court cited the need to protect funding for good causes as the reason for the suspension. Costs in the Ithuba and Ringeta matters were awarded against the respondents.

Why the award failed

The request for proposals (RFP) set a three-stage process: evaluation, adjudication by the NLC, then the minister's decision. According to GroundUp's report on the judgment, the evaluation committee ranked Ringeta first, and the NLC adjudication committee recommended Ringeta as preferred bidder with Sizekhaya as reserve.

Tau then appointed a ministerial committee. It re-assessed the bids with new consultants and recommended Sizekhaya as preferred bidder and Ithuba as reserve. The judge held that this was a "parallel process" the RFP did not provide for, and that the minister's reasons often tracked the committee's recommendations word for word.

The finding turns on procedure. Sizekhaya says the court made no adverse findings against it on the grounds Ithuba and Ringeta raised.

GroundUp also reports that amaBhungane alleged in June 2025 that people linked to Sizekhaya had family ties to a senior government figure. Tau instructed the NLC to investigate, and the judge noted that no report of that inquiry appeared in the court papers.

EFF challenge dismissed

The EFF brought a constitutional challenge to provisions of the Lotteries Act dealing with the financial interests of political office-bearers in bidders. It was heard together with the review and dismissed, with each side bearing its own costs.

The judge said any change must come through legislative reform. He noted that the RFP had already extended the prohibition to indirect interests.

Reactions from the parties

Sizekhaya said it was disappointed and that the lottery continues as normal. Ithuba said it is reviewing the judgment with its lawyers to decide its next steps. Goldrush Holdings announced the judgment on 3 November 2026, according to Gaming.net.

An earlier urgent application by Ithuba, case 108644/2025, was heard in the same court, with judgment handed down on 27 November 2025.

What it means for the market

The ruling leaves the licensing outcome open without interrupting play, so players, retailers and good-cause beneficiaries see no change in the near term. For bidders and operators, it shows that deviations from a published RFP process can unwind an award even after the operator has launched.

Lottery award disputes are not unique to South Africa. In the UK, IGT withdrew its legal challenge against the National Lottery licence award to Allwyn, and in Africa a Nigerian Supreme Court ruling on control over lottery regulation shaped that market's oversight. On the regulatory front at home, South Africa has also been tightening enforcement, as shown by the gambling verification portal aimed at unlicensed operators and the Remote Gambling Bill.

The next milestone is the minister's reconsideration decision within the first six-month window. Any move by Ithuba, Sizekhaya or the minister to challenge the judgment would also affect that timeline.

Status reviewed on 3 November 2026. Court details come from reporting on the judgment by GroundUp, Mail & Guardian and Sowetan, alongside statements from the parties. More regulation news and Africa coverage.