South African High Court Overturns Lottery Licence Award Over Procedural Breach

The High Court of South Africa has ruled against the award of the Fourth National Lottery licence to Sizekhaya Holdings.

Sizekhaya Holdings, majority owned by Goldrush Holdings, secured the licence from Minister Parks Tau in 2025. It assumed operations from incumbent Ithuba in June 2026 following a process that drew eight bidders.

Ithuba and the Ringeta Consortium contested the decision. They claimed Minister Tau violated the rules by adding a Ministerial Committee for bid reassessment, a step absent from the official guidelines published by the National Lotteries Commission. The commission had listed Sizekhaya as the reserve bidder.

The court upheld the challenge on these technical grounds but found that Tau acted in good faith. No adverse findings were made against Sizekhaya.

Ruling Preserves Lottery Operations

As reported by SBC News, the court suspended its invalidity order for 12 months. Sizekhaya will continue to sell tickets across retail and digital channels, hold scheduled draws, pay winners, and support good causes during this period.

The minister has been directed to reconsider the bids, setting aside the Ministerial Committee’s reports and recommendations. The matter returns to the minister for a fresh review.

Statements from Sizekhaya and Goldrush

Sizekhaya said: “Sizekhaya is disappointed with the outcome but notes that the Court made no adverse findings against it on any of the grounds raised. The decision concerned a technical issue in the licence award process, which has been referred back to the Minister for reconsideration.”

Goldrush Holdings added: “Sizekhaya is considering the judgment with its legal advisers, and the Company will keep shareholders informed of any material developments.”