High Court sets aside awarding of Lotto licence to Sizekhaya Holdings - IOL
Sizekhaya is led by KwaZulu-Natal businessmen Moses Tembe and Sandile Zungu, who is also the owner of AmaZulu Football Club.
The North Gauteng High Court in Pretoria has set aside the decision to award the Fourth National Lottery and Sports Pools Licence to Sizekhaya Holdings RF (Pty) Ltd, directing the Minister of Trade, Industry and Competition to reconsider the award within 12 months.
The court reviewed and overturned Minister Park Tau'sΒ decision to award the licence to Sizekhaya, declaring the licence agreement concluded between the minister, the National Lotteries Commission (NLC) and the company invalid.
However, the declaration of invalidity has been suspended for two consecutive six-month periods to give the minister time to reconsider the licence award and make arrangements for a possible change in operator.
The court referred the issue of awarding the licence back to the minister for reconsideration.
The minister has also been instructed to disregard the report and recommendations of the Ministerial Committee when making a fresh decision on the licence.
The ruling further provides that, should Sizekhaya not be awarded the licence again, the second six-month period will allow the minister to negotiate and conclude a new licence agreement and put transitional arrangements in place.
The decision follows a lengthy and controversial process to appoint a new operator of the National Lottery, which has been the subject of several court challenges.
In May 2025, Tau announced Sizekhaya Holdings as the successful bidder for the Fourth National Lottery and Sports Pools Licence, following the evaluation of eight applications.
Sizekhaya, which is partly owned by JSE-listed gambling group Goldrush Holdings, was selected to take over the lottery for an eight-year period, replacing Ithuba Holdings, which has operated the lottery since 2015.
Sizekhaya is led by KwaZulu-Natal businessmen Moses Tembe and Sandile Zungu, who is also the owner of AmaZulu Football Club.
The awarding of the licence sparked legal challenges from unsuccessful bidders, including Lekalinga and Ithuba Lottery, which questioned aspects of the appointment process and sought to prevent the implementation of the award.
In June 2025, Lekalinga approached the Gauteng High Court in Pretoria seeking to review and set aside Tau's decision to award the licence to Sizekhaya.
The legal disputes also raised questions about the transparency of the selection process and the minister's handling of the transition from Ithuba to the new operator.
The latest ruling now requires Tau to reconsider the award, while allowing time for the lottery's continued operation and a possible transition to another licence holder.
