Ithuba strikes deal with Tau, NLC

The announcement comes after Ithuba’s operating licence expired on Saturday, leaving the lottery’s future uncertain amid delays in appointing a new operator. 

Last week, Tau named Sizekhaya Holdings as the next licence holder, but their appointment has faced significant political resistance, legal challenges, and procedural delays.

Reports indicate that Sizekhaya Holdings is led by a consortium including prominent KwaZulu-Natal business figures Moses Tembe and Sandile Zungu. 

The competition for the multi-billion-rand licence was fierce, with eight companies vying for the contract. However, Tau has postponed the final announcement of the official licence holder until May 2026, marking the third delay since 2022.

The National Lottery, through the National Lottery Distribution Trust Fund (NLDTF), channels billions of rands toward funding non-profits, community upliftment projects, and public benefit initiatives. 

Ithuba, which has managed South Africa’s National Lottery since 2015, reassured the public that all games, draws, and prize payouts will proceed normally, without any disruption to services or jackpots.

“As a proudly 100% black-owned South African operator, ITHUBA remains steadfast in its commitment to operate the National Lottery with integrity, transparency, and for the benefit of South Africans. Participants can be rest assured that all games, draws, and prize pay-outs will continue as normal – with the same exciting jackpots and seamless service that they are accustomed to,” the company stated.

This reassurance follows a tense period of uncertainty after Ithuba’s licence expired, which put this month’s ticket sales in legal limbo. 

Initially, Ithuba’s sister company, Ithuba Lottery, was set to manage the lottery temporarily. However, a Gauteng High Court ruling last week declared the issuance of a 12-month interim licence unlawful, limiting any temporary licence to five months.

Faced with financial constraints, Ithuba Lottery indicated it might not be able to operate under the shortened licence period.

Amidst ongoing legal and political disputes, Ithuba has stepped up to fill the operational gap, ensuring South Africa’s most popular lottery games remain uninterrupted and accessible to players nationwide.

While this agreement offers short-term relief, the long-term future of the National Lottery remains uncertain, as Sizekhaya Holdings still requires several months to become fully operational. Questions also remain about the transparency of the licensing process and the impact of further legal challenges.

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