Sizekhaya Wins South African National Lottery Licence

The future of South Africa’s National Lottery is set for a major shift. From 1 June 2026, control of the lottery will pass to Sizekhaya Holdings, a consortium led by prominent business figures Moses Tembe and Sandile Zungu. This follows a competitive bidding process concluded in May 2025, in which Sizekhaya secured a ten-year licence worth R180 billion. The announcement marks the end of Ithuba’s decade-long management and ushers in a new era for Lotto, Lotto Plus, PowerBall and Daily Lotto, with changes expected not only in how the games are run but also in how funds are channelled back into communities.

The National Lottery is one of the country’s most popular and visible forms of gambling, with millions of South Africans buying tickets each week. Whoever operates it is tasked not only with selling tickets and paying out prizes but also with funding a significant proportion of community development projects through the National Lottery Distribution Trust Fund. With Sizekhaya now preparing to take over, expectations are high. The consortium has promised to modernise systems, improve access, and bring a fresh approach to both technology and transparency. For players, this promises a smoother, faster and more mobile-first experience, while for regulators and the public the focus will be on whether Sizekhaya can manage one of the country’s most important national institutions responsibly.

The awarding of the licence to Sizekhaya was based on the strength of its bid. According to government officials, the proposal stood out for both financial weight and a clear promise of innovation. The R180 billion value reflects one of the largest gambling-related agreements on the African continent. Within its bid, Sizekhaya outlined a plan to make the lottery mobile-first, ensuring ticket purchases are easier and more accessible on digital platforms. It also promised to introduce faster payout systems to reduce the gap between draws and winnings, something players have long called for. Another commitment was greater transparency in how funds are allocated to the National Lottery Distribution Trust Fund, with government signalling that stronger oversight mechanisms will be in place.

In May 2025, the appointment of Fundi Sithebe as a non-executive director added a new layer of credibility to the project. Sithebe, formerly CEO of 4Racing, is a respected figure in corporate South Africa and her presence is expected to strengthen governance. Her role is considered important for three reasons. She brings credibility by reinforcing the seriousness of the consortium’s governance approach, innovation through her background in modern systems and digital growth, and balance by providing a bridge between regulators, operators and the public. For Sizekhaya, which has faced criticism over political connections, the appointment is a clear attempt to demonstrate professionalism and strengthen trust.

Despite the optimism surrounding the award, controversy has not been far behind. Political parties including the EFF and BOSA have raised concerns about whether the process was truly independent and transparent. Critics have questioned if political influence may have played a role in the outcome, suggesting that relationships rather than pure merit tipped the balance. Their concerns focus on transparency, political connections, and whether South Africans can trust that billions in revenue will be managed responsibly. In Parliament, the Minister of Trade, Industry and Competition defended the decision, insisting that the process was competitive and fair. At the same time, the Minister acknowledged the need for oversight and accountability, recognising that the credibility of the lottery as a national institution depends on public confidence.

The controversy matters because the National Lottery is more than just a form of entertainment. It is a vital source of funding for schools, sports organisations, arts programmes and community projects through the NLDTF. Any doubts about the fairness of the award or the management of the fund could undermine public trust. Under Ithuba, there were frequent complaints about how money was distributed, with critics pointing to a lack of transparency. Sizekhaya has promised to address these concerns with clearer reporting, regular public updates, and a stronger role for the National Lotteries Commission in overseeing allocations. Government has also emphasised that a new focus will be placed on ensuring smaller, grassroots projects are not overlooked in favour of larger, more established organisations.

For players, the most pressing question is what changes they will actually experience once Sizekhaya takes over. While the core games of Lotto, Lotto Plus, PowerBall and Daily Lotto will remain the same, there are expected to be noticeable improvements. Ticket purchases will become easier through mobile platforms and apps, reducing reliance on physical retailers. Payouts will be processed faster, meaning winners can access their money sooner. Branding will be refreshed, with new visuals for marketing campaigns, draw shows and tickets. Retail agents, from large supermarkets to small spaza shops, are expected to see upgrades in their technology, making transactions quicker and more reliable.

The economic significance of the deal cannot be overstated. At R180 billion, the licence reflects the size of the lottery industry in South Africa and its importance to the wider economy. Ticket sales generate billions each year, sustaining thousands of jobs across the retail and technology ecosystem. Employment in lottery-related businesses, from retail agents to technical service providers, depends on a well-run system. The scale of this contract also sets a precedent for how large gambling-related licences are handled in the country, making transparency and accountability crucial not only for this award but for future regulatory processes.

The political significance of the licence award is just as substantial. It has become both a business decision and a political talking point. At the heart of the debate are three questions. Did the strongest bid genuinely win, or did political connections play a role? Can Sizekhaya deliver on its promises of modernisation, mobile-first access and transparent funding? And will regulators enforce accountability effectively once the contract is underway? These questions will only be answered once Sizekhaya officially takes over on 1 June 2026. Until then, the scrutiny will remain intense.

Ultimately, the success of this licence award will be judged on more than financial results. For players, it will be about whether systems are smoother, tickets are easier to access, and winnings are paid out quickly. For government, it will be about whether the contract stands as a test of transparency and sets a strong precedent for future awards.

For Sizekhaya, it will be about proving that it can manage one of South Africa’s most high-profile national institutions responsibly and deliver on its promises. The real test will be whether the consortium can earn the trust of millions of South Africans who participate in the lottery every week, while ensuring that the billions generated genuinely benefit communities across the country through the National Lottery Distribution Trust Fund.

The award of the National Lottery licence to Sizekhaya Holdings represents one of the most significant changes in South African gambling in the past decade. While the games themselves will remain familiar, the way they are delivered, the speed of payouts, and the visibility of how funds are managed will shift.

For players, that may mean greater convenience and trust. For communities, it could mean stronger and more transparent funding. And for Sizekhaya, it is a chance to prove that it can carry the weight of responsibility that comes with running the National Lottery. From 1 June 2026, the spotlight will be firmly on them, and the outcome will define not only the future of the lottery but also public trust in one of South Africa’s most important national institutions.