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Minister Tau Pushes Lotto to Legal Brink

Dear Editor

The DA has seen a letter sent by Minister Parks Tau dated 03 March 2025 in which he informs lotto bidders that he will shortly issue a request for proposal (RFP) for the appointment of a temporary national lottery operator for the period 1st June 2025 to 31st May 2026. The DA has also seen the RFP circulated to bidders.

Under Section 13 B of the Lotteries Act, the current lotto licence cannot be extended further. This means unless a new, permanent operator is appointed, Lotto ticket sales will be terminated on 31st May 2025 until further notice.

The DA calls on Minister Tau to answer on what provisions of the Lotteries Act he is empowered to issue a further temporary licence, following the expiry date of the current licence. Answers from Tau are urgent as there may be a violation of the Lotteries Act.

This also comes two weeks after Minister Tau provided himself a further twelve months to adjudicate on the appointment of the new licence holder, extending the deadline until 31st May 2026. This, he claimed, was to ensure the appointment process was not tainted by irregularities or legal impediments.

During a meeting of the trade, industry and competition portfolio committee on Wednesday neither the Chairperson of the National Lotteries Commission, Prof Barney Pityana, nor representatives from the Department said they were aware of any new RFP being issued for a further temporary licence. Either they were not informed of the letter and RFP or they were lying to Parliament.

For all practical purposes, it is impossible for a new operator to get its systems in place before 1st June 2025. The only outcome of the RFP could be a further extension of Ituba’s licence, or the non-awarding of a temporary licence and the cessation of Lotto ticket sales. Neither of these scenarios is acceptable and goes to show that the awarding of the new licence has been bungled from start to finish.

Regards

Toby Chance MP
DA Spokesperson on Trade, Industry & Competition

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