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Goldrush Holdings is entangled in a legal dispute following the recent awarding of a massive R180 billion National Lottery License to Sizekhaya Holdings, in which Goldrush holds a 50% stake.
Two competing bidders are challenging the decision in court, which could have significant implications for the lottery’s future operations. During the announcement of Goldrush’s interim results, director Jan van Niekerk confirmed that the legal proceedings are active, and stakeholders will be kept informed pending the outcome of these challenges.
Sizekhaya Holdings is slated to take over as the operator of South Africa’s National Lottery starting in June 2026, having secured an eight-year license in May 2025.
This change will end Ithuba Holdings’ management of the lottery since 2015. The board of Sizekhaya includes prominent figures such as Moses Tembe, Sandile Zungu, Fundi Sithebe, and Dr. Mabatho Mutshekwane.
Van Nierkerk emphasized that Sizekhaya has made considerable strides in establishing the necessary physical, technological, and legal frameworks to effectively manage the lottery, with final approval from the National Lotteries Commission expected well ahead of the June start date.
R92 million invested by Goldrush
Goldrush has allocated R92 million to support Sizekhaya, with the funding coming from internal cash flows and additional bank financing.
Currently, all expenses incurred by Sizekhakya are categorized as pre-operational, meaning they do not yet impact Goldrush Holdings’ profits. However, the capital injection and related bank debt are reflected on Goldrush’s balance sheet.
As Goldrush looks to the remainder of its 2026 financial year, the company plans to enhance its business brand while upholding the integrity of its operating licenses. Goals include increasing revenue per gaming position, managing expenses in line with income, and providing the infrastructure needed to operate the National Lottery successfully.
For the six months ending September 20, Goldrush reported an 11% rise in earnings before tax, reaching R37.7 million.
This growth stemmed from modest improvements in its land-based operations alongside a stronger online segment. The business has performed well within a stable operating environment, characterized by slightly lower interest rates, although subdued consumer spending remains a challenge.
Van Neikerk noted that Goldrush appears to have outpaced its land-based competitors based on recent statistics from the National Gambling Board for 2025, despite the overall negative impact online betting has had on traditional operations.
Slight H2 increase for Goldrush
Goldrush reported a modest increase in its performance for the first half of the year, with gross gaming revenue reaching R936.3 million, marking a 4% rise compared to the same period last year. Revenue from food and beverages, primarily linked to Bingo operations, saw a stronger growth of 10%, totaling R37.5 million.
This performance pushed total income past the R1 billion threshold for the first time, representing a 5% increase overall. Additionally, the gross profit from gaming operations rose by 8% to reach R565.5 million.
However, the company also faced challenges, as “other operating expenses” surged by 14%. This increase was largely driven by higher staff costs and the expenses associated with the online business model, which includes greater marketing investments and platform fees. These costs are generally higher in online sectors compared to traditional operations.
Notably, Goldrush did not declare any dividends for this period. The company also reported a significant drop in headline earnings per share, which fell by 87.5% to 7.13 cents.
This decline followed the reversal of a deferred tax liability of R52.7 million (equating to 107.9 cents per share), a result of Goldrush ceasing to operate as an investment entity in the first half of 2025.
This transition led to changes in accounting policy and the presentation of consolidated financials. Consequently, Goldrush’s share price remained flat at 600 cents on Friday, down from 789 cents a year ago.
Source: Find More Africa
