By Lehlohonolo Lehana.
The North Gauteng High Court in Pretoria has set aside the decision to award the Fourth National Lottery and Sports Pools Licence to Sizekhaya Holdings.
Sizekhaya is led by KwaZulu-Natal businessmen Moses Tembe and Sandile Zungu, who is also the owner of AmaZulu Football Club.
Among Sizekhaya’s shareholders is Bellamont Gaming, a company co-owned and co-directed by Khumo Bogatsu – Paul Mashatile’s sister-in-law.
Bogatsu is the twin sister of Humile Mashatile, born Bogatsu. The deputy president and Humile were married in a lavish set of celebrations attended by the political and business elite in March 2023.
The lottery licence is almost literally a licence to print money. The outgoing operator, Ithuba Holdings, reported a R7.28-billion turnover in 2024. Bogatsu and Tembe’s joint involvement added to widespread fears that the politics of patronage may have intruded on the award process.
The awarding of the licence sparked legal challenges from unsuccessful bidders, including Lekalinga and Ithuba Lottery, which questioned aspects of the appointment process and sought to prevent the implementation of the award.
In June 2025, Lekalinga approached the Gauteng High Court in Pretoria seeking to review and set aside Minister of Trade and Industry Parks Tau’s decision to award the licence to Sizekhaya.
The ruling now requires Tau to reconsider the award, while allowing time for the lottery’s continued operation and a possible transition to another licence holder.
The minister has been instructed to disregard the report and recommendations of the Ministerial Committee when making a fresh decision on the licence.
The declaration of invalidity has been suspended for two consecutive periods of six months.
The ruling further provides that, should Sizekhaya not be awarded the licence again, the second six-month period will allow the minister to negotiate and conclude a new licence agreement and put transitional arrangements in place.
The Lotteries Act provides that “no political party in the Republic or political office-bearer [must have] any direct financial interest in the applicant or a shareholder of the applicant” for a lottery licence.
Political parties Build One South Africa (BOSA) and the Economic Freedom Fighters (EFF) have been outspoken on the issue. BOSA submitted a Promotion of Access to Information Act (PAIA) application to access the identities of the people tasked with adjudicating the tender amid concerns of conflicts of interest.