Legal · South Africa

High Court rules against the award of South Africa's Fourth National Lottery licence

In short

The High Court of South Africa has ruled against the minister's decision to award the Fourth National Lottery licence to Sizekhaya Holdings, and has ordered the bids to be reconsidered. The invalidity order is suspended for 12 months, so the lottery keeps running as normal.

Why it matters in South Africa

This is a lottery licensing case, not an online casino matter, and it does not change which casino sites accept South African players. It still matters because it shows how closely South African courts examine how gambling licences are awarded, and how much of the sector depends on ministerial decisions following the published process. Lottery players are not affected today: tickets, draws and prize payments continue. Anyone following the wider debate about licensing and regulation in South Africa will want to watch how the minister handles the reconsideration.

What the court decided

The High Court of South Africa has ruled against the decision to award the Fourth National Lottery licence to Sizekhaya Holdings, a company majority owned by Goldrush Holdings. SBC News reported the ruling on 3 November 2026.

The award was made by the Minister of Trade, Industry and Competition, Parks Tau, in 2025. Sizekhaya took over running the lottery from the previous operator, Ithuba, in June 2026.

Why the award was challenged

Ithuba, together with the Ringeta Consortium, which was also a bidder, took the decision to court. They argued the minister broke the process rules by adding a step that was not in the official guidelines.

  • Eight parties bid for the licence.
  • The National Lotteries Commission assessed the applications, and Sizekhaya ranked as a reserve bidder rather than the preferred one.
  • The minister then set up a separate ministerial committee to reassess the bids, and that committee's work led to Sizekhaya being chosen.

According to the SBC report, the court accepted that this step created a technical defect in the process.

What happens now

The court suspended its order of invalidity for 12 months so the lottery can keep operating without a gap. It also found that the minister acted in good faith, and made no adverse findings against Sizekhaya. The minister has been ordered to reconsider the bids and to disregard the reports and recommendations of the ministerial committee.

In a statement quoted by SBC News, Sizekhaya said it was disappointed but noted that the issue was technical and had been referred back to the minister. Goldrush Holdings told shareholders that Sizekhaya is considering the judgment with its legal advisers. Until then, ticket sales through retail and digital channels, scheduled draws, prize payments and contributions to good causes continue.

What it means for South African players

If you play the national lottery, nothing changes for now. If you use online casinos, this ruling does not alter the position that no South African operator currently holds a licence for remote casino games, and it says nothing about offshore sites. Our casino reviews keep "not licensed in South Africa" separate from "accepts South African players" for that reason.

The case is a reminder that licensing decisions here can be overturned on procedure, even when no one is accused of bad faith.

What to watch next

Watch for the minister's decision on how the bids will be reconsidered, any appeal by Sizekhaya or another party, and whether the 12-month window is enough to settle who holds the licence. We have not seen the judgment itself, only reporting on it, so details may be refined once the full text is public.

Frequently Asked Questions

Has the national lottery stopped running? +
No. The court suspended its invalidity order for 12 months, and tickets, draws and prize payments continue as normal, according to reporting on the ruling.
Did the court find that Sizekhaya did anything wrong? +
Not according to the reports. Sizekhaya says the court made no adverse findings against it, and that the issue was a technical one in how the minister ran the award process.
Does this affect online casinos in South Africa? +
No. It concerns the National Lottery licence only. It does not change the legal status of online casino games or of offshore casinos accepting South African players.
Who brought the challenge? +
Ithuba, the previous lottery operator, together with the Ringeta Consortium, another bidder.

Sources & Further Reading

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