Reports have emerged that South Africa will grant a lottery licence to a bidder whose ties with the previous operator are still being questioned.
Trade, Industry and Competition Minister Parks Tau has launched a bid for a temporary license holder that would run the National Lottery in the next 12 months, starting June.
This would establish a period of transition leading up to the announcement of the next exclusive rights owner, which will run the National Lottery for eight years.
Current license holder Ithuba Holdings will surrender these rights on 30 May after 10 years of full ownership. The company had its contract extended in 2023 for two more years.
This two-year extension is the maximum a company can be granted under South Africa’s Lottery Act, which automatically blocked Ithuba Holdings from participating in the bid for the temporary license.
However, among the bidders emerged a new company called ‘Ithuba Lottery’, which competitors have accused of practically being the same entity.
For example, rival bidder Wina Njalo for example has pointed out that ‘Ithuba Lottery’ and ‘Ithuba Holdings’ share six of the same active directors, therefore calling for Tau to skip the temporary license.
But it seems that the 12-month transition period is going to happen regardless, as lottery policymakers have more than once recommended whoever will bid for the next full license to use the time to put their infrastructures in order.
According to South Africa news outlet GroudUp, Tau has even already entered talks with Ithuba Lottery to potentially grant it the temporary licence.
Media speculation is based on an alleged shareholder letter distributed by Ithuba Lottery where it’s said that the company is in talks to “finalise the agreement”.
The official announcement of the temporary lottery license holder is expected on 28 May.