South African Lottery Licence Decision Expected by 28 May Amid Legal Dispute

South Africa’s long-awaited decision on who will operate the national lottery for the next eight years is now set to be made “on or before 28 May 2025,” according to Minister of Trade, Industry and Competition Parks Tau. The announcement comes as Ithuba’s current licence is due to expire on 31 May, raising the likelihood that lottery ticket sales may be suspended temporarily from 1 June.

The minister made the announcement in a notice distributed through a secure virtual data platform used to communicate with approved bidders. Tau emphasised that the successful applicant would be named once negotiations around licence terms are concluded to his satisfaction. If these talks fail, the minister reserves the right to negotiate with the next eligible bidder.

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Without a confirmed operator in place, the sale of lottery tickets is likely to be halted temporarily from midnight on 31 May. Industry insiders warn that transitioning to a new operator could take up to six months, during which hardware, software, and infrastructure must be established. Despite this, the National Lotteries Commission will continue to fund good causes and cover operating costs using its R4.3 billion reserve.

Wina Njalo Pursues Court Action Alleging Ministerial Bias

The minister's latest decision has not deterred Wina Njalo, one of the bidding consortiums, from proceeding with a legal challenge. The group, affiliated with the HCI Foundation, filed an urgent application in the Pretoria High Court on 24 March, calling on Tau to finalise the licence award by 9 May and complete all minister reserves the right to negotiate with the next eligible bidder. negotiations before Ithuba’s current licence expires.

Wina Njalo accuses the minister of delaying the process to benefit the incumbent operator, Ithuba. In court documents, the consortium claims the recent tender for a temporary licence contradicts the prolonged delay in awarding the permanent contract, suggesting this discrepancy is irrational and minister reserves the right to negotiate with t

he next eligible bidder. aimed at serving ulterior motives.

Although Tau recently reversed the temporary licence plan and opted instead for a permanent appointment, Wina Njalo contends that this shift does not resolve the core issues outlined in their legal application. The matter is minister reserves the right to negotiate with the next eligible bidder. scheduled to be heard on 22 April.

Delays and Discontent Among Bidders

Frustration is mounting among the other bidders, many of whom believe the process has been unnecessarily drawn out. The Request for Proposals (RFP) was released in August 2023, with a deadline in early February 2024, but no official decision has been made despite the time elapsed.

Some industry observers have criticised Tau’s approach, noting that previous licence awards took less than a year from submission to finalisation. A source close to one of the bidding groups remarked that the minister has had the adjudication recommendations since October 2024, and that delays are undermining trust in the process.

Meanwhile, concerns have also been raised about the cost and feasibility of running the lottery under a temporary licence, which led many bidders to decline applying for the short-term option. The long-term value of the national lottery licence is estimated between R60 billion and R65 billion over the next eight years, underscoring the high stakes involved.

As this complex process unfolds, South African players are advised to stay updated through reliable sources. For those looking to explore other legal gambling options in the interim, the list of licensed online casinos remains a trusted alternative for quality gaming experiences within the country.