South Africa's Minister of Trade faces court pressure over delayed lottery licence award

A bidder for South Africa’s next national lottery licence has filed court papers seeking to compel Trade, Industry and Competition Minister Parks Tau to announce the winning applicant by May 9, amid growing concerns about delays ahead of the current operator’s licence expiry.

Wina Njalo, backed by the HCI Foundation, launched the legal challenge in the Pretoria High Court, arguing that Tau has failed to commit to a firm date for awarding the fourth national lottery licence. The current licence, held by Ithuba, ends on May 31.

Tau recently announced a target date of May 28 for naming the successful bidder, but declined to make the timeline legally binding. Wina Njalo argues this undermines confidence in the process and may pave the way for a temporary extension of Ithuba’s licence.

“The minister was not prepared to commit to this in a court order. This can only mean that his target date is not a genuine date by which the minister is prepared to make the decision,” Wina Njalo CEO Dawid Benjamin Muller said in an affidavit.

Muller claims the delay is aimed at preserving Ithuba’s position and has described the minister’s actions as unlawful. The bidder also seeks to have a potential minister’s plan to issue a temporary 12-month licence declared unconstitutional.

“This is an admission that it was the minister’s ongoing delay — not an unforeseeable or unavoidable event — that necessitated considering a new, unplanned temporary licence,” Muller said. He pointed out that, in December, the National Lotteries Commission (NLC) had described the award of a temporary licence as "an inevitability."

The minister’s legal team said a temporary licence may still be needed even if the fourth licence is awarded on time, citing operational handover challenges. They emphasized the minister’s intent to “avoid a situation where there is no lottery in place.”

However, Wina Njalo insists the delay has already created legal uncertainty and alleged that only Ithuba, given its infrastructure, could realistically benefit from a temporary licence — effectively locking out other competitors.

“The lengthy, ongoing delay is important and telling. It is a significant period of time (almost four months). In the absence of an explanation from the minister, which has not been given... the inference becomes inevitable that the minister had wantonly delayed taking the licence decision,” Muller added.

The company also accuses Tau of withholding key documents, including evaluations by the National Lotteries Commission (NLC), records of consultations with the NLC and National Treasury, and details of an independent audit of bidders.

An urgent hearing has been scheduled for April 22. The minister and the NLC have filed notices opposing the application and had until April 14 to submit responding affidavits.

Wina Njalo is also asking the court to set aside the request for proposals for the temporary licence and has vowed to press ahead with its legal action. “[The temporary licence] was just to ‘soften their attitudes’ to deter objections and legal challenges,” Muller said.