Sizekhaya Holdings

Sizekhaya Holdings (RF) (Pty) Ltd is a South African consortium that was awarded^[1] the Fourth National Lottery and Sports Pools Licence by the South African Department of Trade, Industry and Competition (DTIC) in May 2025.^[2] The company, led by KwaZulu-Natal businessmen Moses Tembe and Sandile Zungu,^[3] is set to operate the National Lottery and Sports Pool for an eight-year term starting June 1, 2026, replacing the previous operator, Ithuba Holdings.^[4] The tender, valued at approximately R180 billion,^[5] has drawn significant attention due to its scale and controversies^[6] surrounding the bidding process.

Sizekhaya Holdings^[7] was registered on January 26, 2024, and emerged as the successful bidder for the National Lottery and Sports Pools Licence after a competitive process involving eight companies.^[8][9] The announcement was made by Minister of Trade, Industry and Competition Parks Tau on May 28, 2025, following negotiations with the National Lotteries Commission (NLC).^[10]

The selection process faced delays and legal challenges,^[11] including a Pretoria High Court ruling that set aside a temporary licence decision and mandated the announcement of a new operator by May 28, 2025.^[12]

Sizekhaya Holdings is tasked^[13] with overseeing lottery ticket sales,^[14] prize payouts, and contributions to the National Lottery Distribution Trust Fund (NLDTF), which supports community development initiatives across South Africa.^[15] The consortium has partnered with Genlot,^[16] a technology company with a 19% global lottery market share, to enhance ticket sales, staff onboarding, and equipment management.^[15]

The consortium^[17] is led by prominent KwaZulu-Natal businessmen Moses Tembe and Sandile Zungu. The Goldrush Group, a subsidiary of JSE-listed Goldrush Holdings, initially held a 50% stake in Sizekhaya but reduced its ownership to 40% to comply with lottery licence regulations.^[9] Other shareholders include Bellamont Gaming,^[18] where Moses Tembe serves as a director. Lebogang Ndadana, a director of Sizekhaya, is also a member of the audit committee of the National Empowerment Fund (NEF), which holds a 20% stake on behalf of the state.

The awarding of the National Lottery licence to Sizekhaya Holdings has been contentious, with opposition parties such as the Economic Freedom Fighters (EFF)^[19] and Build One South Africa (BOSA) raising concerns about transparency and alleged political connections. Sandile Zungu, a known ANC member and former non-executive director at Goldrush Group, has been at the center of these criticisms, though Moses Tembe has denied allegations of cronyism, asserting that the bid was won based on merit.^[20] On the other hand parties like DA and EFF has labeled the decision as corrupt, and Ithuba Lottery, the previous operator, has indicated it may pursue legal action, citing concerns over the bidding process. This comes after numerous court orders by Wina Njalo, an Johan Rupert backed HCL Holdings subsidiary failed to win the lottery operations.

Sizekhaya Holdings, a South African consortium awarded an eight-year licence to operate the country’s national lottery in May 2025, faced significant scrutiny in Parliament especially from the DA ^[21] regarding its selection process and alleged political connections. During a parliamentary portfolio committee meeting in June 2025, Minister of Trade, Industry, and Competition Parks Tau defended ^[22] the appointment, asserting that the bidding process was transparent and compliant with the Lotteries Act.^[23] Tau emphasized that Sizekhaya Holdings was selected after a comprehensive review of its financial statements, compliance policies, and long-term operational strategies. Addressing concerns raised by opposition members, particularly from the Democratic Alliance (DA), Tau acknowledged allegations of conflicts of interest involving Deputy President Paul Mashatile’s sister-in-law, Khumo Bogatsu, a shareholder in Bellamont Gaming, which holds a stake in Sizekhaya.^[24] Tau stated he was unaware of Bogatsu’s involvement at the time of the award and committed to investigating any potential irregularities, promising Parliament a thorough review to ensure compliance with legal and ethical standards.^[23]

Sizekhaya Holdings has rejected claims of political interference or favoritism in securing the national lottery license, particularly regarding alleged ties to Deputy President Paul Mashatile.^[25] The consortium issued a statement denying any influence from political connections, asserting that its successful bid was based solely on merit and compliance with bidding requirements.^[26] Reports noted that Bellamont Gaming, a shareholder in Sizekhaya, is co-owned by Khumo Bogatsu, the twin sister of Mashatile’s wife, Humile Mashatile

Sizekhaya Holdings^[27] has outlined an ambitious vision to elevate the National Lottery by introducing advanced technology and increasing contributions to the NLDTF. Chairperson Moses Tembe^[28] has emphasized the consortium’s commitment to job creation, economic stimulation, and community development, leveraging 35 years of gaming industry experience to enhance the lottery’s impact. The company requires a nine-month preparation period to set up operations, with the full transition expected by June 1, 2026.