A highly anticipated bid war is set to unfold as Hosken Consolidated Investments (HCI) and current national lottery operator Ithuba Holdings among others compete for the lucrative fourth licence to operate the national lottery. The stakes are high, and industry insiders are predicting an intense battle for the coveted licence worth R150bn-R250bn to the winner.
The national lottery, a staple in South African culture since its inception, has provided funding for numerous charitable initiatives, infrastructure projects, and social programs. The operator of the lottery plays a crucial role in ensuring the effective distribution of funds and the smooth operation of the games. With the expiry of the current licence held by Ithuba Holdings approaching, the spotlight is now on HCI as they step up to challenge the status quo.
Hosken Consolidated Investments, a diversified investment holding company with interests spanning various industries, has expressed its intent to throw its hat into the ring for the fourth licence bid. The move is seen as a strategic one, as HCI seeks to diversify its portfolio and gain a foothold in the burgeoning gaming sector. With a track record of successful ventures and a strong financial position, HCI is positioned to give Ithuba Holdings a run for its money.
On the other side of the impending showdown is Ithuba Holdings, the current operator of the national lottery. Having held the licence since 2015, Ithuba, whose already extended contract is set to lapse at the end of May 2025, has confirmed it will bid for the renewal of the contract. Ithuba’s tenure has not been without controversies, leading some stakeholders to advocate for a fresh perspective in the management of the national lottery.
The bid war is expected to be multifaceted, with both HCI and Ithuba Holdings vying not only for the licence itself but also for public and governmental support. Both entities are likely to emphasise their respective strengths, including financial stability, innovative approaches to gaming, and a commitment to social responsibility.
The request for proposals, gazetted last week, invited interested bidders to purchase proposal documentation from the National Lotteries Commission between the end of August and October 31. The final date for the submission of completed applications is midday on February 3, 2024.
The stage is set for a high-stakes battle that will determine the future direction of one of South Africa’s most iconic institutions. As the bidding process commences, all eyes are on the contenders as they vie for the opportunity to shape the nation’s gaming landscape for years to come.