South Africa could be without the National Lottery for at least six months. Picture: iStock
National Lottery games in South Africa could grind to a complete standstill for about six to 12 months next year due to alleged irregularities around the awarding of a new operator licence.
A “Lotto-less” country – albeit temporarily – could see early childhood development (ECD) entities, old age homes, charities and community-based organisations, as well as sports and arts bodies that rely on National Lottery grants for their daily operations, shutting their doors.
The minister responsible for the National Lottery, Parks Tau, has come under pressure on Tuesday this week from the Parliament’s trade and industry portfolio committee.
The committee urged Parks to dismiss the National Lotteries Commission (NLC) board and fire NLC commissioner Thabang Mampane.
Further complaints raised about the awarding of a new Lottery operator licence, has forced the trade and industry minister to postpone the adjudication process which was currently underway.
The Lottery licence is awarded for a period of eight years to the value of at least R80 billion.
Tau said allegations of malfeasance and conflict of interest, including those involving the adjudication of the next Lottery licence, would be investigated.
He stated that he had “taken a view” to allow the NLC board, which oversees the licence bid, to “complete its processes”.
The minister also revealed that he has “appointed agents” to review the recommendations that would be made on the awarding of the licence.
City Press reported that, according to a source, the alleged irregularities could have a drastic impact on Lottery operations in 2025.
“Lottery in South Africa may come to an abrupt stop for about six to 12 months next year. Precipitating this drastic halt of the country’s favourite gambling pastime is a myriad of alleged irregularities in the process under way to appoint the Lottery licence operator.”
The minister was supposed to announce the successful bidder by the end of September, but postponed the decision after several allegations surfaced implicating board members and bidding companies.
Several officials in the NLC and the Department of Trade and Industry reportedly told the publication that the current operator, Ithuba, already had its licence extended for 18 months last year.
They explained that a further extension would be illegal.
Ithuba’s licence expires in May next year. A successful bidder should be afforded at least six months ahead of then to establish technical and other infrastructure, including ticket machines, across the country.
However, according to insiders, the conflict of interest allegations against the board and Tau’s pledge to launch an investigation would delay the announcement beyond that timeframe.
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