On June 1, 2026, Sizekhaya took over the South African National Lottery, ending Ithuba Holdings’ 11-year tenure and marking the first change in operators since 2015. This transition featured R130 million jackpots, live televised draws on e.tv, and over 5,500 new retail terminals activated nationwide, although it also comes amidst ongoing legal disputes that could potentially alter the award.
Sizekhaya secured the eighth license under the Lotteries Act 57 of 1997, covering an eight-year term with an estimated value of R180 billion based on projected ticket sales. According to the terms, 34% of the lottery's revenue is directed to the National Lottery Distribution Trust Fund (NLDTF), which supports charities, sports, arts, and community infrastructure. Since its inception in 2000, the NLDTF claims to have allocated over R31 billion to various causes, with Ithuba contributing R1.83 billion in the 2024 financial year from ticket sales totaling R7.28 billion, highlighting the significance of this handover.
The Sizekhaya consortium is led by Moses Tembe from KwaZulu-Natal and Sandile Zungu, the owner of AmaZulu FC. Goldrush Holdings has a 40% stake in the operator, while the National Empowerment Fund holds 20%. Another 7% is linked to Bellamont Gaming, associated with Khumo Bogatsu, the twin sister of Deputy President Paul Mashatile's spouse. Sizekhaya's lottery platform is powered by Genlot, a Shenzhen-based company connected to China’s national lottery.
Concerns over cronyism have emerged, particularly related to the shareholding of Bellamont, due to its connection to the Mashatile family. An investigation by amaBhungane noted that Bellamont was registered in December 2023, with Tembe and Bogatsu as its only directors. Sizekhaya itself was incorporated shortly before the bidding deadline of February 3, 2024.
The Democratic Alliance (DA) and the Economic Freedom Fighters (EFF) have voiced strong objections. The EFF described the findings as indicative of “irregularities, conflicts of interest, and political exposure” in the bidding process, alleging that Goldrush and Bellamont are platforms for potential corruption linked to the ANC and Deputy President Mashatile's associates.
In June 2025, DA MP Toby Chance called for a thorough and independent investigation, suggesting the deal appeared to favor Mashatile's family and criticizing Minister Parks Tau for failing to recognize the connection between Bellamont and Mashatile.
Responding to the allegations, Sizekhaya has asserted that their selection was merit-based, emphasizing that the bidding process was open and competitive. Tembe remarked that scrutiny aimed at understanding their operations is welcome, but he dismissed the accusations as baseless.
There were eight competitors for the fourth license, a figure twice that of the previous bidding round. Minister Tau postponed naming a winner for eight months, during which he granted a one-year extension to Ithuba Lottery to prevent interruptions when Ithuba's term expired in May 2025. A Pretoria High Court ruling mandated that Tau announce the winner and finalize the license agreement by May 28, 2025, deeming the extension unlawful.
On May 28, 2025, Tau named Sizekhaya the winner but did not initially provide scoring details. Lawyers for Lekalinga, a Serbian-backed consortium, quickly challenged the decision under the Promotion of Administrative Justice Act, seeking full disclosure of scores and documentation. When these requests went unfulfilled, they filed an urgent application in the High Court, with Ithuba supporting a similar case.
On August 5, 2025, Tau delivered more detailed reasoning behind his decision, stating, "In my view, Sizekhaya pipped the others to the post," praising their balanced bid, technology partnership, and ambitious yet realistic revenue forecasts.
Ithuba's subsequent legal actions included a July 2025 review application and an urgent September filing to halt the transfer pending a review. Ithuba’s attorney, Johan Roodt, alleged that Tau's decision was undermined by procedural irregularities. However, in November 2025, the Pretoria High Court dismissed Ithuba's plea, with Judge Ronel Tolmay affirming that the public interest necessitates uninterrupted lottery operations and that Sizekhaya can fulfill its obligations.
While Sizekhaya officially began operations on June 1, 2026, legal disputes persist. Ithuba's review and a parallel challenge from Lekalinga remain on the docket of the North Gauteng High Court, with the EFF seeking to join as an additional plaintiff citing conflicts related to the Mashatile link.
The ongoing court challenges raise significant questions about the licensing process, including claims of improper scoring and negotiations that may have disregarded political connections. There are also broader concerns regarding whether Sizekhaya satisfied the financial readiness criteria necessary for the license.
Deputy President Mashatile is often viewed as a potential successor to President Cyril Ramaphosa, despite minimizing any presidential ambitions. The unresolved matters surrounding the lottery license add fuel to the opposition's scrutiny as the succession conversation progresses. Responding to criticism in May 2026, Mashatile claimed an investigation was already underway and defended his associates as credible businesspeople, emphasizing that their success is not reliant on his influence. He also denounced assumptions linking black business success to corrupt practices.
With court reviews pending, the lottery tender emerges as a pivotal examination of the government’s procurement integrity and public confidence.
