The National Lottery in South Africa faces a potential shutdown in 2025 due to irregularities in the bidding process for the new operator licence.
Story Summary:
- South Africa’s National Lottery could face a six-to-12-month shutdown in 2025 due to a licence adjudication delay, brought on by allegations of irregularities in the bidding process.
- These issues have placed significant pressure on Minister Parks Tau and the National Lotteries Commission (NLC), with several key players under investigation.
- If unresolved, the disruption could impact many organisations reliant on Lottery funding, including early childhood centres, sports bodies, and charities.
Licence dilemma threatens Lotto operations in South Africa
Reports suggest that the licence adjudication process has been postponed, leaving uncertainty about the future of Lotto operations.
This follows serious allegations of malfeasance, conflict of interest, and potential corruption, which have prompted the intervention of Parks Tau, the minister overseeing the National Lotteries Commission (NLC).
Tau is under increasing pressure to address these issues, with calls from Parliament’s trade and industry committee to dismiss the NLC board and its commissioner, Thabang Mampane.
The decision to award the new licence, which is valued at over R80 billion, has been delayed as investigations into these concerns unfold.
What happens if Lotto shuts down?
If the National Lottery ceases operations for six to 12 months, the consequences would be severe.
Early childhood development (ECD) centres, old age homes, community-based organisations, and sports and arts bodies that rely on National Lottery grants could face closure.
These entities depend heavily on the funds generated by Lotto ticket sales to sustain their programs.
The potential suspension of Lotto games would not only affect these organisations but could also result in a significant loss of revenue for the government, which uses a portion of Lottery proceeds to fund social upliftment projects.
Additionally, the public, which engages in Lotto games regularly, would face a disruption in accessing one of the country’s most popular forms of gambling entertainment.
Will Lotto shut down in South Africa in 2025?
The possibility of Lotto shutting down in South Africa next year remains uncertain but concerning.
According to a City Press report, if the current issues with the licence adjudication are not resolved swiftly, the Lottery could come to a halt.
The current operator, Ithuba, has already received an 18-month extension, which expires in May 2025.
The company would need at least six months to establish the necessary infrastructure for a smooth transition to a new operator, which may now be impossible given the delays.
Minister Parks Tau has promised to address the situation, but whether his efforts will prevent a complete shutdown remains to be seen.
The coming months will be crucial for the future of the Lottery, with further investigations, parliamentary hearings, and decisions by the NLC expected to play a significant role in shaping the outcome.