How a deal was struck to save the National Lottery from shutdown

IN TENSE, last minute discussions at the weekend, Trade, Industry, and Competition Minister Parks Tau intervened to prevent a shutdown of the National Lottery.

- MASHUDU SADIKE

Tau's intervention came after a high-stakes meeting on Saturday with the National Lottery Commission (NLC) and Ithuba, the current lottery operator.

The situation arose after the Gauteng High Court ruled that Ithuba's operating license could only be extended for five months, until the new operator, Sizekhaya Holdings takes over.

The NLC had argued that a 12-month temporary license was necessary to ensure a smooth transition, but the court disagreed.

However, in a surprise move, Tau announced that he had granted a 12-month temporary license to Ithuba Holdings, allowing them to continue operating the National Lottery from June 1 until the end of May next year - when Sizekhaya Holdings takes over as the operator.

"It was an intense meeting, and the minister knew what impact it would have on the country's economy given the scale of the tender and people relying on playing the lotto week in and week out," a source close to Tau said.

Ithuba had argued in court that if they accepted a five-month extension, they would incur a loss of R51 million.

Ithuba has agreed to continue operating the National Lottery, ensuring that all games, draws, and prize payouts will proceed normally.