Allocating The Operator’s Licence
The operation of the National Lottery is a massive undertaking which demands substantial investment in infrastructure and personnel. It is for this reason that each licence is granted for a minimum of five years.
The amount available for good causes is directly linked to the volume of ticket sales, so it is important to the NLC that the operator is effective, able to meet player demand in every corner of the country and equipped with fail-proof systems for making and recording sales.
The operator’s ability to communicate with the broad public is also a critical factor, so that players have easy access to the results of every draw.
Three licences have been awarded to date:
Uthingo Management (2000 – 2007)
Gidani (Pty) Ltd (2007 – 2014)
Ithuba Holdings (2015 – 2022)
Monitoring Operations
The NLC has a Compliance Division that monitors the operation of the National Lottery by:
- Conducting random inspections of Lottery draws.
- Undertaking security inspections of draw equipment and processes
- Auditing the figures on Lottery sales, weekly payments to the National Lottery Distribution Trust Fund (NLDTF), and prizes paid out.
- Visiting retailers of lottery tickets to physically verify compliance and also audits retailer data. Monitoring the lottery operator’s social responsibility initiative.
Fraudulent activities are detected from time to time. While the majority are dealt with by the security section of the lottery operator, criminal charges are sometimes laid and some cases are prosecuted.
The NLC sets high targets for the operator’s performance in terms of:
- The reliability and availability of the on-line lottery system
- Validation and prompt payment of winnings
- Customer service
The operator’s record in terms of meeting these targets is reflected in every Annual Report.
