New Lottery Era for South Africa: Ithuba Exit, Temporary Extension and Sizekhaya Holdings Takeover Explained
Viable News Team 
South Africa’s National Lottery is undergoing a major transition, with outgoing operator Ithuba Holdings set to step down but not before playing a key role in ensuring continuity.
Recent developments confirm that Ithuba was granted a 12-month temporary licence to keep the lottery running during a complex transition period, while a new operator prepares to take over long-term operations.
Why Ithuba Was Given a Temporary Extension
According to government information published by SAnews, Trade and Industry Minister Parks Tau approved a temporary licence for Ithuba to operate the lottery from 1 June 2025 to 31 May 2026.
The decision was made to prevent disruption to lottery operations and ensure that funding for public benefit programmes continues uninterrupted.
Authorities emphasised that maintaining ticket sales and revenue streams was critical, as lottery proceeds support community projects across the country.
Enter Sizekhaya: The New Operator
The next long-term operator of the National Lottery has been confirmed as Sizekhaya Holdings.
The consortium has been awarded the fourth National Lottery licence, which will run for eight years starting 1 June 2026.
Sizekhaya emerged as the preferred bidder after a competitive process involving multiple consortia. The group is led by prominent South African business figures, including Moses Tembe and Sandile Zungu, and is expected to bring new technology and innovation into the lottery system.
A High-Stakes Licence
The National Lottery licence is one of the most lucrative government contracts in the country, with estimates suggesting it could be worth tens of billions of rand over its lifespan.
The operator is responsible for:
- Managing ticket sales nationwide
- Overseeing prize payouts
- Contributing funds to charitable and development initiatives
Under Ithuba, the lottery has generated billions for social causes since it took over operations in 2015.
Delays and Legal Challenges
The transition has not been without controversy.
The appointment of a temporary operator and delays in naming a long-term licence holder led to legal disputes and court challenges. However, government maintained that continuity of operations was in the public interest.
Officials argued that without a temporary licence, ticket sales could have been disrupted — potentially affecting funding for charities and community programmes.
What the Transition Means for Players
For everyday lottery participants, the transition is expected to be largely seamless.
During the interim period:
- Ticket sales will continue as normal
- Draws and prize payouts will remain unchanged
- Retail infrastructure and systems will stay operational
The temporary extension allows the incoming operator time to prepare systems, technology, and staffing before taking full control in mid-2026.
A Changing Lottery Landscape
The handover from Ithuba to Sizekhaya represents a significant shift in South Africa’s gaming and lottery sector.
Industry analysts expect the new operator to focus on:
- Digital transformation and mobile platforms
- Expanding participation across different demographics
- Increasing contributions to social development funds
End of an Era, Start of Another
As Ithuba prepares to exit after more than a decade at the helm, its temporary extension ensures a smooth handover rather than a sudden shutdown.
At the same time, the appointment of Sizekhaya signals a new phase for the National Lottery — one that could reshape how the system operates in the years ahead.
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