Uncertainty Surrounds South Africa’s National Lottery Future as Ithuba’s License Expires
South Africa’s national lottery faces uncertainty as Ithuba, the current operator, approaches the expiration of its license in May 2025. The delay in announcing a new operator raises concerns about ticket sales and the future of National Lotteries Commission (NLC) grants.
License Expiration and Potential Impact
Ithuba’s license will expire on May 31, 2025. The bidding process for a new operator has been extended until May 2026. This delay has sparked concerns about continuing ticket sales and how the NLC will manage its funding during this period. Parks Tau, South Africa’s Minister of Trade, Industry, and Competition, attributed the delay to the need for thorough evaluations and to avoid political influence. However, the decision has been postponed multiple times since July 2022.
The government first postponed the decision in 2022 when former Minister Ebrahim Patel pushed back the process. Now, Tau has extended the bidding timeline, leaving uncertainty about the future of Ithuba and ticket sales once the license expires. Concerns have grown over potential political connections between bidders and the ruling ANC party, which has raised calls for transparency in the process.
Options for the Government and the NLC
Ithuba remains the only company prepared to operate the lottery. The government must choose between two options: suspend ticket sales entirely or extend Ithuba’s license for another year. Extending the license may lead to legal challenges from other bidders.
The NLC has plans in place to continue granting funds for up to 12 months if ticket sales stop. A reserve fund will cover operating expenses and help finance projects supported by the lottery during the transition.
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