South African court sets aside Sizekhaya's Fourth National Lottery licence award, orders bids reconsidered

The High Court of South Africa has ruled against the decision to grant the Fourth National Lottery licence to Sizekhaya Holdings, which is majority owned by Goldrush Holdings. Minister Parks Tau made the award in 2025 after a bidding process, and Sizekhaya took over lottery operations from the previous holder, Ithuba, in June 2026.

The case was brought by Ithuba and Ringeta Consortium, another bidder. They argued that the minister had breached the process rules by adding a step that was absent from the official guidelines. Eight parties had submitted bids, and the National Lotteries Commission evaluated the applications. In that assessment Sizekhaya was ranked as a reserve bidder rather than the preferred one.

Minister Tau then set up a separate Ministerial Committee to reassess the bids, a move that was not formally part of the official process. That reassessment led to Sizekhaya receiving the licence. The court acknowledged the technical discrepancies and ruled against the decision.

The court found that the minister had acted in good faith and made no adverse findings against Sizekhaya. It ordered the minister to reconsider the bids and to disregard the reports and recommendations produced by the Ministerial Committee. The declaration of invalidity has been suspended for 12 months so that the lottery can keep running without disruption.

Sizekhaya said it was disappointed with the outcome but noted that the court made no adverse findings against it on any of the grounds raised. It described the matter as a technical issue in the award process that has been referred back to the minister for reconsideration. In the meantime, the company will continue operating the lottery as normal, with tickets on sale through retail and digital channels, draws held on schedule, winners paid and contributions to good causes maintained.

Goldrush Holdings said Sizekhaya is reviewing the judgment with its legal advisers and that the company will update shareholders on any material developments.