The temporary suspension of the South African national lottery has resulted in rising costs that could run into hundreds of millions of rands, with as much as ZAR340m likely to be forfeited in earnings.
According to Trade and Industry Minister, Mandisi Mpahlwa, the lottery has been suspended following a court order setting aside the awarding of the new licence to Gidani, which now runs the risk of losing millions if a new decision does not favour it.
Mpahlwa dismissed the likelihood that the department would be liable for compensation from losing bidders and said: “The issue of compensation does not really arise. A decision was made that was set aside by a court. A new decision will have to be arrived at so there is no real basis to ask for compensation.”
Mpahlwa is now pursuing legal avenues to operate the lottery in the interim without a licensed operator.
