SA lottery sales miss as licence redo looms

iGaming Business reported that South Africa’s national lottery licence award is being revisited after a court set aside the decision to grant it to Sizekhaya Holdings, while the regulator disclosed that Sizekhaya’s early ticket sales are trailing its own bid projections.

What happened

Appearing before Parliament’s Portfolio Committee on Trade, Industry and Competition on 10 November, South Africa’s trade minister, Parks Tau, said the department has not yet decided whether to challenge the judgment that overturned his award to Sizekhaya. He told MPs the matter is “under consideration,” speaking eight days after the ruling.

At the same hearing, the National Lotteries Commission (NLC) reported that Sizekhaya’s sales have fallen short of expectations. Executive manager Tintswalo Nkuna said the operator’s bid had anticipated roughly R3.5bn in ticket sales, but actual sales are about R2.1bn — a shortfall of 39% against the bid figure. She added that performance also sits 21.7% under the revised forecast for 2026–27. Nkuna noted the regulator had expected an initial dip as players take time to adjust to a new operator. Sizekhaya assumed control of the lottery on 1 June 2026, succeeding Ithuba Holdings after 11 years.

The litigation was initiated by two unsuccessful applicants, Ithuba Lottery and Ringeta Consortium. The tender’s evaluation committee had placed Ringeta first with 73.92 points, narrowly ahead of Sizekhaya on 72.95, and an NLC board committee recommended Ringeta. Minister Tau later convened a ministerial committee to reassess the bids, and that group recommended Sizekhaya.

Judge Norman Davis found that the ministerial committee effectively re-scored bids outside the formal tender framework. He accepted that Tau acted in good faith but concluded that creating and relying on the committee breached the rules and fairness requirements applying to the process. The court rejected Ithuba’s claim that Sizekhaya lacked fully committed funding at the time of award, and it did not preclude Sizekhaya from ultimately securing the licence in a lawful process.

The licence agreement itself was declared invalid. Tau must now reconsider who should be awarded the licence without using the ministerial committee’s report. Sizekhaya may continue running the lottery for up to one year while the matter is resolved. The ruling gives the minister six months to take a fresh decision and a further six months to sign a new agreement and, if necessary, organise a handover to a different operator.

NLC chair Tembinkosi Bonakele backed Tau’s decision to seek additional advice, saying there were inconsistencies about how the minister should manage the process. He added that the minister wanted to probe areas not easily demonstrated in a written bid, including probity, Black Economic Empowerment (BEE), and whether proposed products were genuinely lottery games.

The award has drawn political attention. Opposition parties questioned a minority interest held by Bellamont Gaming, which is co-owned by the sister of Deputy President Paul Mashatile’s wife. Sizekhaya has rejected suggestions of political influence. Bonakele said the NLC board is waiting for Tau’s decision on a possible appeal.

Why it matters

• Process risk in licensing: The ruling highlights how departures from tender rules can derail otherwise well-intended oversight steps. For regulated gambling markets, clarity around who evaluates bids — and how — can be as important as the bids themselves.
• Commercial realism: Sizekhaya’s shortfall against its bid projections underlines how ambitious sales assumptions can be tested once an operator takes over. Early underperformance may normalise, but it can also pressure funding plans and commitments.
• Governance and perception: The controversy around ownership interests and the focus on probity and BEE show how governance themes can shape confidence in national lotteries. For UK observers, similar dynamics could influence sentiment in any market where public-interest gambling licences are contested.

What to watch

1. Whether Parks Tau seeks leave to appeal, and if so, how that intersects with the six‑month deadline to make a fresh award decision.
2. The outcome of the reconsideration once the minister excludes the committee’s report, and whether Sizekhaya, Ringeta, or another party prevails.
3. Sizekhaya’s sales trend relative to the revised 2026–27 forecast, and whether early caution from players eases as operations mature.
4. How the NLC documents and weighs probity, BEE considerations, and game definitions inside the tender’s formal rules to avoid future procedural challenges.
5. The level of political and public scrutiny around shareholdings and whether this affects perceptions of fairness and stability during any transition.

Further reading

• Check operator permissions and oversight: /trust/licence-check
• How complaints and rulings are handled: /trust/disputes
• Practical tips and tools for safer play: /responsible-gambling

Related guides

• [How Slots Work](/how-slots-work)
• [Bonus Types](/bonus-types)
• [Wagering Requirements](/wagering-requirements)

Source

This article is based on the report "South Africa’s lottery operator falls short of sales forecast as Tau weighs appeal" published by iGaming Business on 13 November 2026.

Staying in control

Set a budget before you play, use deposit and session limits, and take regular breaks. Never chase losses, and only gamble what you can afford to lose. Gambling is for adults aged 18 and over. If you’re worried about your gambling or someone else’s, free confidential help is available from the National Gambling Helpline on 0808 8020 133.