# Tau Grants Temporary Lottery Licence Despite Court Ruling
Friday, 06 June 2025
Trade and Industry Minister Parks Tau has announced a 12-month temporary licence for the National Lottery, awarded to a sister company of Ithuba Holdings. This decision comes after a Gauteng High Court ruling declared such a licence unconstitutional. Tau, however, has stated he "takes issue" with the judgment and has formally appealed it. The move was made to prevent a suspension of Lotto ticket sales, which were in jeopardy after Ithuba’s previous licence expired over the weekend.
The temporary arrangement ensures continued operation of the National Lottery while preparations are made for a new long-term operator to take over. Tau has argued that the decision was made on the advice of the National Lotteries Commission and in the public interest.
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## New Long-Term Operator Announced
While Ithuba will continue to run the lottery on an interim basis, Sizekhaya Holdings has been named the new operator, set to take over in June 2026 under an eight-year licence. Sizekhaya is chaired by prominent businessman Moses Tembe and includes AmaZulu FC owner Sandile Zungu among its shareholders. The group is backed by the Goldrush casino group.
Tembe has dismissed criticism regarding the tender process, stating that Sizekhaya's selection was based on merit, including its plans to modernise the lottery and boost funding for social initiatives. The new operator also aims to develop infrastructure that would allow the state to eventually manage the lottery independently.
## Court Challenges and Political Scrutiny
The process has drawn legal and political scrutiny. An earlier legal challenge from Wina Njalo, a competing bidder controlled by HCI, led the court to rule the delayed licence decision unlawful. The court also found the temporary licence unconstitutional, though it did not block the possibility of a short-term interim arrangement, potentially lasting five months. The Commission’s attempt to extend this to a full year was rejected, yet Tau proceeded with the 12- month arrangement citing urgency.
Political groups including Build One South Africa and the EFF have called for transparency regarding the selection process and potential political ties among Sizekhaya's leadership. Despite the controversy, operations will continue under the temporary licence, maintaining Lotto access for South African players.
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