The High Court of South Africa has ruled against a decision to award the Fourth National Lottery to Sizekhaya Holdings.
Sizekhaya, majority owned by Goldrush Holdings, was awarded the licence by Minister Parks Tau in 2025 following a bidding process. It took over the lottery’s operations from previous holder Ithuba in June 2026.
However, Ithuba, together with Ringeta Consortium, another party in the bidding, challenged the decision legally, arguing that Minister Tau had breached the process rules by introducing an extra step that was not in the official guidelines.
There were a total of eight bidders, with their applications being assessed by the National Lotteries Commission. This resulted in Sizekhaya being considered as a reserve bidder rather than the preferred choice.
Minister Tau then created a separate Ministerial Committee to reassess the bids in a move that was not technically part of the official process. This is what led to Sizekhaya securing the licence.
The court has now acknowledged the technical discrepancies, ruling against the decision.
In a statement, Sizekhaya said: “Sizekhaya is disappointed with the outcome but notes that the Court made no adverse findings against it on any of the grounds raised.
“The decision concerned a technical issue in the licence award process, which has been referred back to the Minister for reconsideration.”
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As the company stated, the court has suspended the invalidity order for 12 months to ensure that the lottery remains operational without any hindrances.
While ruling that Minister Tau had acted in good faith, and there were no adverse findings against Sizekhaya, the court has ordered the Minister to reconsider the bids and disregard the reports and recommendations made by the Ministerial Committee.
In the meantime, Sizekhaya will continue to run the lottery as usual, with tickets still being put out for sale across retail and digital channels, lottery draws being conducted on schedule, winners getting paid, and contributions to good causes remaining in place.
Goldrush Holdings added: “Sizekhaya is considering the judgment with its legal advisers, and the Company will keep shareholders informed of any material developments.”