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Lottery Licence Delayed Again, Raising Concerns Over Ticket Sales and Grants
The announcement of a new operator for South Africa’s national lottery has been delayed once again, extending uncertainty over ticket sales and grant allocations beyond May 2025. Minister of Trade, Industry, and Competition Parks Tau has postponed the decision by another 12 months, marking the third delay since July 2022.
The current operator, Ithuba, holds a licence that expires on 31 May 2025. However, the bidding adjudication process will now continue until May 2026, leaving questions about what will happen to lottery ticket sales and National Lotteries Commission (NLC) grants in the interim.
No Clarity on Ticket Sales After Ithuba’s Licence Ends
A statement from Tau, circulated via email to Members of Parliament, confirmed an extension of the “bid validity period” until 31 May 2026 but failed to address the fate of ticket sales once Ithuba’s licence expires. The licence, valued at approximately R180 billion over five years, has been described as “a licence to print money.”
This latest delay has caught many by surprise. The first postponement came in July 2022 when the decision was pushed back by two years under then-Minister Ebrahim Patel. Tau previously stated that the Lotteries Act allows an incumbent operator’s licence to be extended for up to 24 months—an option Patel exercised.
With Ithuba being the only company currently equipped to run the lottery, the government faces two possibilities: either extending Ithuba’s licence for another year, which could prompt legal challenges from other bidders, or suspending ticket sales entirely.
NLC Grants and Funding at Risk
The NLC has contingency plans to continue grant allocations for up to 12 months, even if ticket sales are paused. A reserve fund has been set aside to cover running costs and ensure funding for good causes, which the lottery supports.
However, delays in grant adjudications have already led to reduced funding in recent years. In 2020, the NLC allocated R1.36 billion to charitable causes, but this amount dropped to R972.3 million by 2023. The commission has yet to release its 2024 report, though funding shortfalls are expected to continue due to anti-corruption measures and a lack of personnel to oversee grant allocations.
Additionally, the NLC’s operating costs have fluctuated, dropping to R469 million in 2023 after cost-cutting measures were introduced under the new leadership.
Political Pressure Behind the Delay?
The lottery’s licensing process has been under scrutiny due to concerns over political influence. Tau has emphasized the need to ensure that no political party or office-bearer has financial interests in the winning bid. However, his decision to delay the announcement has sparked speculation, particularly as some bidders reportedly have links to factions within the ruling ANC.
Mzwandile Masina, chair of Parliament’s trade and industry committee, has pushed for an investigation into the lottery licence process. He has also urged Tau to consider issuing a temporary licence or exploring a state-run lottery model if a decision cannot be reached before Ithuba’s licence expires.
Meanwhile, opposition MPs have criticized Tau’s handling of the situation, with Democratic Alliance MP Toby Chance suggesting the delay could be linked to conflicts of interest among bidders.
Unanswered Questions
Despite public concern, the Ministry has yet to confirm whether Ithuba’s licence will be extended again or if lottery ticket sales will be affected after May 2025. There is also no clarity on how NLC grants will be managed beyond that date.
With billions of rands at stake and growing political tensions, the future of South Africa’s national lottery remains uncertain.
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