How deal was struck to save National Lottery

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 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.

According to sources close to Tau, the minister promised Ithuba that they would not lose any revenue and would instead make a profit, although the details of how this would be achieved are not clear.