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Lotto Operations Continue After Ithuba’s Licence Renewed for One Year

Lotto operations in South Africa will continue without interruption after the Department of Trade, Industry and Competition (DTIC) granted a one-year renewal to Ithuba Holdings’ Lotto licence. This renewal comes despite the licence having officially expired on Saturday, ensuring that the popular national lottery remains operational while ongoing legal challenges are resolved.

Ithuba Holdings, which has been the licensed operator of South Africa’s National Lottery since 2015, saw its initial eight-year licence expire in 2023. Since then, the licence has been extended twice on a temporary basis for one year each. However, recent legal hurdles nearly jeopardised this renewal process.

The extension of Ithuba’s licence faced significant challenges after the National Lotteries Commission (NLC) lost a court bid to extend the temporary licence to a full 12 months. The Pretoria High Court ruled on 21 May 2025 that the DTIC could only offer a five-month renewal for Ithuba’s Lotto licence. This decision was reaffirmed on 30 May following a related case.

The court’s ruling created uncertainty around the future of Lotto operations in South Africa, raising concerns among millions of players and stakeholders. A lapse in the licence could have halted Lotto draws and disrupted associated beneficiary programs that rely on lottery proceeds for funding.

Department of Trade, Industry and Competition Appeals to Safeguard Lotto

In response to the court decision, the DTIC filed an appeal against the ruling, seeking to secure a longer renewal period for Ithuba’s Lotto licence. The appeal effectively nullified the five-month limit set by the High Court, allowing Lotto operations to continue uninterrupted pending the outcome of the legal proceedings.

The department issued a statement affirming its commitment to ensuring the stability and continuity of South Africa’s National Lottery system. It emphasized that the appeal was necessary to protect public interest and safeguard the funding of important social initiatives supported by Lotto proceeds.

Ithuba Holdings has managed South Africa’s Lotto operations since 2015, overseeing one of the country’s most popular games of chance. The National Lottery is a critical source of funding for community development, charities, arts, and sports programs across South Africa.

Over the past decade, the Lotto has generated billions of rands for good causes, distributing funds to thousands of organisations nationwide. The ongoing licence renewal saga has therefore attracted considerable attention not just from players but also from non-profit and governmental sectors relying on lottery contributions.

For Lotto participants, the renewal means that they can continue to buy tickets and play their favourite games without disruption. The government and Ithuba have reassured the public that draws will proceed as scheduled, with winners receiving their prizes in full.

This continuity is important not only for entertainment but also for the economic ecosystem built around the Lotto, including retailers and vendors who rely on commission income generated from ticket sales.

While the one-year licence renewal buys time, questions remain about the long-term management and future tendering of South Africa’s Lotto operations. The DTIC and other regulatory bodies are under pressure to conduct a transparent, competitive licensing process that will ensure the National Lottery’s integrity and sustainability.

Observers expect that once the appeal is concluded, further decisions will be made regarding whether Ithuba will retain its licence or if a new operator might be selected. This process will be closely watched by industry experts, legal analysts, and the general public alike.

Despite the legal complexities surrounding the renewal of Ithuba’s Lotto licence, the Department of Trade, Industry and Competition’s successful appeal means that South Africa’s  operations will continue to run smoothly for at least another year. This outcome preserves a critical funding stream for social projects and maintains the excitement and engagement of millions of players nationwide.

As the appeal process unfolds, all eyes remain on the government and courts to ensure that the future of the Lotto is managed fairly, transparently, and with the public interest at heart.

Source- EWN

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