South Africa’s National Lottery is on the brink of suspension from 1 June, as Trade, Industry, and Competition Minister Parks Tau postpones the announcement of the next operator and backtracks on earlier plans to issue a short-term licence.
Initially, Tau had floated the idea of granting a temporary one-year licence to prevent disruption. However, this proposal has since been abandoned. Tau now says he will reveal the new operator “on or before 28 May,” leaving only a few days to ensure a smooth transition before the current licence held by Ithuba expires on 31 May.
This delay has triggered legal action. The Wina Njalo consortium, one of the bidding groups, is challenging the minister’s handling of the process in court. Wina Njalo is seeking an order compelling Tau to finalise the award by 9 May, arguing that the delay unfairly benefits Ithuba and jeopardizes fair competition.
In a notice to bidders, Tau stressed that the next operator would only be named once negotiations are concluded to his satisfaction. He also referenced a clause allowing him to open talks with an alternative bidder if initial negotiations collapse. However, insiders caution that the clock is ticking. Experts estimate that a six-month lead time is needed to establish the necessary technology, ticketing infrastructure, and operational systems to run the National Lottery — an almost impossible task if a new operator is appointed just days before the licence deadline.
Should a new operator be selected, they would need to urgently set up everything from ticket machines to secure data networks — a major logistical challenge in the limited time available. Without such systems in place, South Africa could face a total halt to lottery ticket sales starting 1 June.
The drawn-out selection process has sparked criticism. Historically, lottery licence awards have been finalised within a year. Yet this latest process has stretched over 14 months. Some observers argue that Tau could have avoided this crunch point by simply endorsing the National Lotteries Commission’s (NLC) recommendations. The NLC completed its bid evaluations as far back as October 2024.
Even if ticket sales are interrupted, the NLC reassured stakeholders that it can continue distributing funds to charities and cover its own operational costs by drawing from its R4.3-billion reserve.
Meanwhile, tensions are escalating in court. Wina Njalo has accused Tau of deliberately dragging out proceedings to Ithuba’s advantage — pointing to the abandoned interim licence plan as evidence of bias.
The Pretoria High Court is scheduled to hear Wina Njalo’s urgent application on 22 April, where they will argue that the minister’s delays are unconstitutional.
Tau has defended the slow decision-making, citing concerns over potential political links among the bidders. He insists that no political party or individual holding public office should have any financial interest in the National Lottery. However, critics maintain that while these concerns are valid, they do not justify more than a year of delays.
As the 31 May deadline looms, the fate of South Africa’s National Lottery hangs in the balance — with the real risk that, for the first time ever, lottery operations could grind to a complete halt.