Sizekhaya Holdings has suffered a legal setback after the North Gauteng High Court in Pretoria set aside the decision to award the company the Fourth National Lottery and Sports Pools Licence.
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The judgment, delivered on Monday, 2 November 2026, declared the licence agreement between Trade, Industry and Competition Minister Parks Tau, the National Lotteries Commission (NLC) and Sizekhaya invalid.
However, the court suspended its order for two consecutive six-month periods to ensure that National Lottery operations continue while the minister reconsiders the decision and makes arrangements for a possible change of operator.
The ruling follows legal challenges brought by unsuccessful bidders Ithuba Lottery and Ringeta Consortium, which questioned the fairness and legality of the process that resulted in Sizekhaya being awarded the lucrative licence.
BREAKING NEWS: The North Gauteng High Court has set aside the decision by Trade, Industry and Competition Minister Parks Tau to award the National lottery licence to Sizekhaya Holdings – KZN Tonight Podcast https://t.co/UCM24GCtCh
— Sihle Mavuso (@ZANewsFlash) November 2, 2026
Court finds flaws in National Lottery licence process
At the centre of the dispute was Parks’ decision to appoint an additional Ministerial Committee to reassess the bids after the NLC had completed its evaluation process.
The court found that the additional committee was not provided for in the original Request for Proposals and that bidders had not been informed that another evaluation process would take place.
The NLC’s original evaluation had ranked Ringeta Consortium first with 73.92 points, followed by Sizekhaya with 72.95 points. However, the Ministerial Committee applied different weightings and recommended Sizekhaya as the preferred bidder.
The court found that introducing this additional process was procedurally unfair and amounted to an unlawful exercise of the minister’s powers.
Parks must now reconsider the licence award without relying on the report and recommendations of the Ministerial Committee.
Parks Tau given 12 months to reconsider the award
The judgment directs the minister to make a fresh decision on the licence within the 12-month suspension period.
The court structured the suspension into two consecutive six-month periods.
The first six months will allow Parks to reconsider the award and make a fresh decision. If he decides not to award the licence to Sizekhaya, the second six-month period will allow for negotiations with another operator, the conclusion of a new licence agreement and transitional arrangements.
The arrangement is intended to prevent disruptions to the National Lottery while the legal and administrative processes are completed.
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Sizekhaya responds to court judgment
Following the ruling, Sizekhaya Holdings expressed disappointment but assured players, retailers and beneficiaries that National Lottery operations would continue as normal.
The company said the court had made no adverse findings against Sizekhaya, its shareholders, management or the quality of its bid.
It described the judgment as concerning a procedural issue in the licence award process, which has now been referred back to the minister for reconsideration.
Sizekhaya also confirmed that tickets would remain available, scheduled draws would proceed and prizes would continue to be paid out.
The company said the suspension of the court order was important in protecting organisations that depend on lottery funding, including old-age homes and children’s homes.
How Sizekhaya secured the National Lottery licence
Sizekhaya was announced as the successful bidder in May 2025 after eight applications were evaluated for the Fourth National Lottery and Sports Pools Licence.
The eight-year licence took effect on 1 June 2026, replacing Ithuba, which had operated South Africa’s National Lottery since 2015.
According to IOL, the company includes KwaZulu-Natal businessmen Moses Tembe and Sandile Zungu, the owner of AmaZulu Football Club, among its prominent figures. It is also partly owned by JSE-listed Goldrush Holdings.
National lottery operations to continue
Despite the court ruling, South Africans can continue purchasing lottery tickets and participating in scheduled games.
The suspension means that the invalidity of the licence agreement will not immediately disrupt operations or the funding distributed to organisations benefiting from lottery proceeds.
The focus now shifts to Minister Parks, who must reconsider the licence award without relying on the additional committee’s recommendations.
The outcome of that process will determine whether Sizekhaya retains the licence or whether arrangements will be made for another operator to take over.
Featured image: Gallo Images/Lubabalo Lesolle
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