High Court Declares Sizekhaya’s National Lottery Licence Invalid In Major Ruling

South Africa’s National Lottery has been thrown into fresh uncertainty after the North Gauteng High Court in Pretoria declared the licence awarded to Sizekhaya Holdings invalid.

In a judgment delivered on Monday, 2 November, Judge Neil Davis set aside Trade, Industry and Competition Minister Parks Tau’s decision to award the Fourth National Lottery and Sports Pools Licence to the company.

The ruling is a major setback for Sizekhaya, which took over the eight-year lottery licence in June 2026 after being announced as the successful bidder in May 2025.

However, the court did not order lottery operations to stop immediately.

Judge Davis suspended the invalidity order for 12 months, giving Tau time to reconsider the licence award and make arrangements for a possible transition to another operator. This means lottery operations can continue during that period.

The court also directed the minister to make a fresh decision without relying on the recommendations of the additional Ministerial Committee he appointed to reassess the bids.

The dispute centred on how the winning bidder was selected.

According to the court findings, the National Lotteries Commission’s original evaluation ranked Ringeta Consortium first with 73.92 points, while Sizekhaya came second with 72.95 points.

However, a Ministerial Committee introduced by Tau used different weightings and recommended Sizekhaya as the preferred bidder.

Judge Davis found that the additional committee process was unlawful because it was not included in the original request for proposals. Bidders had also not been informed that this extra assessment would take place, making the process procedurally unfair.

Although the court accepted that Tau had acted in good faith, it concluded that appointing and relying on the committee amounted to an unlawful exercise of his powers.

Sizekhaya includes prominent KwaZulu-Natal businessmen Moses Tembe and Sandile Zungu, who owns AmaZulu Football Club. The company is also partly owned by JSE-listed Goldrush Holdings.

The licence award had faced legal challenges from unsuccessful bidders, including previous operator Ithuba Lottery and Ringeta Consortium, while Lekalinga was also among the parties that challenged the process.

The court ordered Tau, the National Lotteries Commission and Sizekhaya to pay the legal costs of Ithuba and Ringeta.

Importantly, Judge Davis also considered the public interest in keeping lottery operations running because the proceeds support charities, old-age homes and other beneficiaries.

The next 12 months will therefore be crucial. Tau must reconsider the award without using the disputed committee’s recommendations.

Do you think the National Lottery licence should go to Ringeta, Sizekhaya or another bidder? Share your opinion in the comments.

Source: https://x.com/MDNnewss/status/2117337834113683711?a=YkewOezx_9itVLJtML8&s=19

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