Uncertainty surrounding ticket sales and grant distributions has been prolonged past May 2025 due to the rescheduled announcement of a new operator for South Africa’s national lottery. Parks Tau, the minister of trade, industry, and competition, has delayed the decision for a further 12 months, the third time since July 2022.
The license held by Ithuba, the current operator, expires on May 31, 2025. But the bidding adjudication process will now last until May 2026, raising concerns about what would happen to National Lotteries Commission (NLC) funds and lottery ticket sales during that time.
A statement from Tau that was sent to members of parliament via email indicated that the “bid validity period” will be extended until May 31, 2026, but it made no mention of what would happen to ticket sales when Ithuba’s license expires.
Many have been taken aback by this new delay. The decision was first delayed by two years in July 2022, when then-Minister Ebrahim Patel made the change. Tau earlier said that an incumbent operator’s license may be renewed for a maximum of 24 months under the Lotteries Act, which Patel did.
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Political interference concerns have raised questions about the lottery’s licensing procedure. Tau has underlined the need of preventing any office-bearer or political party from having a financial stake in the winning bid. His choice to postpone the announcement, nevertheless, has raised rumors, especially because some bidders are said to have ties to the ruling ANC groups.
The head of the trade and industry committee in Parliament, Mzwandile Masina, has advocated for an investigation of the lottery license process. If a decision cannot be made before Ithuba’s license expires, he has also encouraged Tau to think about implementing a state-run lottery approach or issuing a temporary license.
The Ministry has not yet confirmed if Ithuba’s license will be renewed or whether lottery ticket sales would be impacted after May 2025, despite popular concerns. Furthermore, it is unclear how NLC grants will be handled after that date.
Since Ithuba is the only business now prepared to conduct the lottery, the government has two options: either suspend ticket sales completely or extend Ithuba’s license for a further year, which might lead to legal challenges from other bidders.
Meanwhile, In the event that ticket sales are suspended, NLC has backup plans to continue awarding grants for a maximum of 12 months. To cover operating expenses and guarantee financing for worthy projects that the lottery promotes, a reserve fund has been established.
