South Africa’s National Lottery is at a turning point. Ithuba Holdings, the current operator, will soon reach the end of its contract. This moment gives us a rare opportunity to pause and ask an important question: Do we still need a National Lottery?
For years, the lottery promised to uplift communities and fund public benefit projects. But growing concerns around corruption, poor oversight, and the real social cost of gambling suggest it may be time to let go of this system.
A recent Daily Maverick article dives into these concerns, making a strong case for shutting the lottery down. Let’s explore why scrapping the National Lottery might be the right move for South Africa.
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The Lottery Was Meant to Help—But Did It?
The National Lottery started with good intentions. Ticket sales were supposed to fund organisations that support the arts, sports, education, and community development.
But in reality, this system hasn’t lived up to its promise.
Investigations over the years have revealed shocking misuse of funds. Instead of going to genuine charities, lottery grants often end up in the hands of politically connected individuals or fake organisations. Meanwhile, real non-profits are left struggling.
This lack of accountability has weakened public trust in the National Lotteries Commission (NLC) and raised serious questions about how the system works.
Who Really Pays the Price?
Most lottery players come from low-income communities. Many people buy tickets out of desperation, hoping for a lucky break that will change their lives.
In truth, the odds are stacked against them. The lottery collects billions from people who can least afford it, and only a small portion of those funds benefits public projects.
This model puts an unfair burden on the poor. Instead of creating hope, it often traps people in cycles of disappointment and financial stress. We need to ask: Is it ethical to fund development by encouraging gambling among the most vulnerable?
There Are Better Ways to Fund Public Good
South Africa doesn’t need a lottery to support social projects. The government has other, more sustainable options:
- Use sin taxes from alcohol, tobacco, and sugary drinks.
- Enforce stronger corporate social investment policies.
- Create a public fund that invests in communities transparently.
These alternatives don’t rely on the false promise of overnight riches. Instead, they create long-term support without exploiting struggling families.
Gambling Addiction Is a Silent Crisis
Another major concern is gambling addiction. Lottery tickets may seem harmless, but regular play can lead to compulsive habits.
The problem is made worse by how easily people can access the lottery—at tills, petrol stations, and even through banking apps. It becomes part of daily life, and many people don’t even realise how much they’re spending until it’s too late.
Gambling addiction affects not just the individual but entire families. It leads to financial problems, mental health issues, and broken relationships.
South Africa is already under pressure when it comes to healthcare and social services. Adding the burden of gambling harm only makes things worse.
If We Keep It, We Must Fix It
If South Africa chooses to keep the National Lottery after Ithuba’s contract ends, big changes are needed. Here’s what that should look like:
- Clear rules on how funds are distributed.
- Independent oversight of the National Lotteries Commission.
- Regular audits and public reporting.
- Full transparency on who receives grants.
- Public education on responsible gambling.
But even with these fixes, the question remains: Would we be better off without the National Lottery?
Time for a Bold, Ethical Decision
The end of Ithuba’s contract gives South Africa a rare chance to reimagine how we fund good causes. Instead of relying on a flawed lottery system, we can build a more ethical, transparent, and sustainable model.
As highlighted in the Daily Maverick’s analysis, the lottery no longer lives up to its original promise. It’s time to admit that and choose a better path forward.
Let’s stop selling false hope and start investing in real, lasting change.
