South Africa’s National Lottery licence has been thrown into fresh uncertainty after the High Court in Pretoria set aside the decision to award the lucrative operating contract to Sizekhaya Holdings.
In a judgment delivered on Monday, 2 November 2026, the North Gauteng High Court found serious problems with the process followed by Trade, Industry and Competition Minister Parks Tau when selecting the preferred bidder for the Fourth National Lottery and Sports Pools Licence.
The court declared the licence award and the agreement between Tau, the National Lotteries Commission (NLC) and Sizekhaya invalid. However, it suspended the effect of the invalidity order to prevent disruption to lottery operations and the organisations that depend on lottery funding.
Court questions the minister’s additional evaluation process
At the centre of the dispute was a ministerial committee established by Tau to reassess the competing bids. The original tender process had already included an evaluation and recommendation by the National Lotteries Commission. However, the ministerial committee conducted another assessment, using different consultants and producing a new ranking of bidders.
The court found that this additional process was not provided for in the original request for proposals. Bidders had not been informed that their applications would undergo another evaluation under different weightings.
The judgment described the introduction of this separate assessment as procedurally unfair and unlawful. The court also directed Tau to disregard the ministerial committee’s report and recommendations when reconsidering the licence award.
Sizekhaya was not originally ranked first
The ruling has brought renewed attention to the competing bids submitted for the eight-year lottery licence. According to the court findings reported by African Daily, the original evaluation placed Ringeta Consortium first with 73.92 points.
Sizekhaya finished second with 72.95 points, followed by Wina Njalo with 72.64 points and Ithuba Lottery with 72.04 points. The National Lotteries Commission’s adjudication committee recommended Ringeta as the preferred bidder and Sizekhaya as the reserve bidder.
However, the ministerial committee later recommended Sizekhaya as the preferred bidder, changing the outcome of the competition. Tau announced Sizekhaya as the successful bidder in May 2025. The company was expected to take over the National Lottery for eight years from June 2026, replacing Ithuba Holdings, which had operated the lottery since 2015.
Minister Tau must reconsider the decision
The court has referred the licence decision back to Tau, giving him six months to reconsider the award without relying on the disputed committee’s recommendations. The invalidity order has been suspended for two consecutive six-month periods.
The first period allows the minister to make a fresh decision. If Sizekhaya is not selected again, the second period will allow negotiations with another operator and arrangements for a possible transition. This means the judgment does not automatically award the licence to Ringeta or any other unsuccessful bidder. The minister must follow a lawful process before deciding who should operate the lottery.
Lottery operations will continue for now
Despite the legal setback, South Africans can continue buying lottery tickets while the suspended order remains in place. The court considered the wider public interest, particularly the organisations that rely on National Lottery funding.
These include children’s homes, old-age facilities and other organisations that use lottery grants to provide essential services. An immediate interruption could have serious consequences for beneficiaries and the wider funding system.
What happens next?
The ruling represents a major development in the long-running dispute over the National Lottery’s future. It also raises questions about transparency, accountability and the procedures followed when government awards major public contracts.
For Sizekhaya, the decision means that its appointment must be reconsidered. For unsuccessful bidders, it reopens the possibility of a different outcome, although no alternative operator has been appointed through this judgment.
The next important step will be Minister Tau’s fresh decision and whether any of the affected parties pursue further legal action. For ordinary lottery players, the immediate message is that operations are continuing. However, the battle over who will hold South Africa’s next National Lottery licence is far from over.
The National Lottery continues operating while the court’s invalidity order is suspended. Ticket sales, scheduled draws and prize payments are expected to continue under the existing arrangements.
2 November 2026 – High Court sets aside Sizekhaya award
The North Gauteng High Court in Pretoria sets aside the decision to award the Fourth National Lottery and Sports Pools Licence to Sizekhaya Holdings. The court also declares the licence agreement invalid but suspends the order to protect the public interest.
May 2025 – Sizekhaya announced as successful bidder
Minister Parks Tau announces Sizekhaya Holdings as the preferred operator for the next eight-year National Lottery licence.
2025 – Legal challenges intensify
Unsuccessful bidders challenge aspects of the selection process, raising concerns about fairness, transparency and the additional evaluation conducted by the ministerial committee.