Court Sets Aside Sizekhaya's Lottery Licence and Sends the Award Back to Tau

South Africa's High Court in Pretoria has set aside the award of the National Lottery licence to Sizekhaya Holdings, five months after it took over. The ground was procedural, and the order is suspended for 12 months.

• The High Court in Pretoria on 2 November set aside Minister Parks Tau's award of South Africa's fourth National Lottery and Sports Pools licence to Sizekhaya Holdings
• The court ruled that Tau's advisory ministerial committee was not provided for in the request for proposals, and told him to reconsider without its report, Goldrush Holdings says
• The review applications were brought by unsuccessful bidders Ithuba Lottery and Ringeta Consortium; a separate Economic Freedom Fighters application was dismissed
• The order is suspended for 12 months, so Sizekhaya keeps running the lottery it took over on 1 June 2026
• Goldrush, whose subsidiary owns 50% of Sizekhaya, says the consortium is considering the judgment with its legal advisers

A Ministerial Committee Outside the Tender Undid the Award

Goldrush Holdings, a JSE-listed gaming group, disclosed the ruling in a SENS announcement on 3 November. It says the High Court of South Africa, Gauteng Division, Pretoria, delivered judgment on 2 November in review applications brought by Ithuba Lottery RF (Pty) Ltd and Ringeta Consortium RF (Pty) Ltd against the Minister of Trade, Industry and Competition, the National Lotteries Commission (NLC), Sizekhaya and others (case numbers 108644/2025 and 228028/2025). The Mail & Guardian names the judge as Norman Davis.

According to Goldrush, the court set aside the award on a procedural ground only: the Ministerial Committee appointed to advise the minister had not been provided for in the request for proposals. The court accepted that the minister acted in good faith, the company says, and referred the award back to him with an instruction to disregard the committee's report and recommendations. The Mail & Guardian and IOL report that the court also declared the licence agreement between the minister, the NLC and Sizekhaya invalid.

The Lottery Keeps Running While Tau Decides Again

Goldrush says games, draws, ticket sales and prize payments are unaffected during the 12-month suspension. The Mail & Guardian reports two consecutive six-month periods: one for Tau to decide afresh and, if he does not choose Sizekhaya, one to agree a new licence and a transition. IOL reports that the court cited the public interest, including good causes funded through the National Lottery Distribution Trust Fund.

Goldrush says the court made no adverse findings against Sizekhaya, its shareholders, its management or the quality of its bid, and that Sizekhaya remains eligible for the licence. The court dismissed a separate application by the Economic Freedom Fighters (EFF) concerning section 13(2)(b)(iv) of the Lotteries Act, 57 of 1997, according to the announcement. Sizekhaya, in a statement reported by IOL, called the outcome a "technical issue". Goldrush says only that Sizekhaya is considering the judgment with its legal advisers, without mentioning an appeal.

Tau named Sizekhaya the winner of the eight-year licence on 28 May 2025, ending the tenure of Ithuba, which had run the lottery since 2015, according to the Mail & Guardian. GroundUp reported in August 2025 that Tau said he had "refused to simply rubber stamp recommendations", and that his committee recommended Sizekhaya as preferred bidder and Ithuba Lottery as reserve. The NLC's own process had ranked Ringeta first, GroundUp reported, before Tau rejected it over its links to the Batho Batho Trust. The same court dismissed Ithuba's urgent bid to stop the handover on 27 November 2025, Goldrush said at the time.

Goldrush Holdings holds 59.4% of Goldrush Group, which owns 50% of Sizekhaya, falling to 40% once the government's shares are issued, according to the announcement: an effective interest of about 29.7%, falling to about 23.8%.

The Committee Was Tau's Remedy, and It Has Become the Defect

Tau created the committee because, on his own account, he would not accept the NLC's recommendation as it stood. The court has found that step outside the tender's rules. Told to disregard the committee's work, the minister appears to be thrown back on an evaluation that, according to GroundUp, put Ringeta first, a bidder he had already rejected. Lottery awards are failing on process elsewhere too: a Maryland judge ruled that Intralot should have been allowed to fix its bid, and Britain's National Audit Office is examining the National Lottery licence award.

Twelve Months Protects Good Causes but Leaves the Operator Exposed

The suspension avoids a break in draws and good-cause funding. It also leaves Sizekhaya, five months into an eight-year licence, building an operation under an award that no longer stands. Goldrush has not said what the ruling means for its finances, and the second six-month window exists only because the court contemplated the licence going elsewhere.

Goldrush's Account Is Accurate but Selective

Goldrush's emphasis on a procedural ground, good faith and no adverse findings matches other reports. Its announcement does not mention the invalidated licence agreement or the two-stage suspension.

The court has not said Sizekhaya should lose the lottery, only that the process that produced the award was flawed. Tau now has to reach a defensible decision without the instrument he used to make the last one.