lottery
5 October 2006
The Minister of Trade and Industry, Mandisi Mpahlwa, today announced that
the licence to operate the National Lottery has been awarded to Gidani (Pty)
Ltd. Gidani is a South African company, with a significant Black Economic
Empowerment (BEE) component and government as a 20% shareholder.
This follows the public process during which four interested parties
submitted proposals for the second licence period.
Proposals were submitted on 30 November 2005 and the initial evaluation was
conducted by the National Lotteries Board. The Board then made its
recommendation to the Minister of Trade and Industry. After due consideration
by the Minister, Gidani was announced as the preferred bidder in July 2006.
Following negotiation on the conditions of the licence, the Minister, on behalf
of the South African Government, entered into an agreement with Gidani for the
next seven years, beginning 1 April 2007.
In determining the preferred bidder, and subsequent licensee, consideration
had to be given to a number of factors, including:
* maximising of revenue for good causes
* maintaining the integrity of the national lottery
* player protection and a commitment to a social responsibility programme
* advancement, upliftment and economic empowerment of persons disadvantaged by
unfair discrimination.
The Lotteries Act provides that no political party or political office
bearer may have any direct financial interest in the licensee. Minister Mpahlwa
is satisfied that Gidani meets this provision.
The licence allows Gidani to conduct all lotteries covered by the Lotteries
Act (for example Lotto, Lotto Plus, Sportstake and Scratchcards). The licence
also provides that there will therefore be no interruption or significant
changes in current games and winners will be able to claim all prizes as
before.
On behalf of Government, Minister Mpahlwa expressed appreciation to the
current licensee, Uthingo Management, and its staff for the manner in which
they conducted the National Lottery during the first licence period.
Since its inception in March 2000, R6,3 billion has been contributed to the
National Lottery Distribution Trust Fund for good causes, of which R4,8 billion
has been allocated to more than 9 000 non-profit organisations across South
Africa. There have also been almost 300 million winners in the various lottery
games and categories and these winners have shared approximately R13 billion in
prize money.
Minister Mpahlwa assured all South Africans that his department and the
National Lotteries Board will continue to ensure the integrity of the National
Lottery and all its participants.
Issued by: Department of Trade and Industry
5 October 2006
Source: Department of Trade and Industry (http://www.dti.gov.za)
