Fronting, irregularities put National Lottery on cancellation
Pauline Dikuelo | Monday July 14, 2025 09:36
Mmegi is informed that the decision to shelve the project, which was nearing its final stages, follows serious allegations of fronting, contractual irregularities, and discomfort from the new administration with the terms surrounding the awarded licence.
Sources close to the matter revealed that although the Gambling Authority (GA) and Ithuba Botswana had concluded negotiations and were awaiting final clearance from relevant authorities, the launch has now been derailed, with no clear path forward.
Ithuba Botswana, a subsidiary of the pan-African group Ithuba Holdings, had secured a 10-year licence to operate the national lottery. The process was initiated under the leadership of former Minister of Trade and Industry, Mmusi Kgafela, and had reached the brink of launch before the new administration took over and opted to review the project.
“The new administration was not happy as they uncovered that there were possibilities of fronting surrounding the awarded licence.They were also not happy with some of the terms and conditions of the contract,” a source close to the matter told Mmegi yesterday.
It is understood that Ithuba Botswana had already invested millions of pula into preparations and legal battles to secure the licence. Attempts to reach the company for comment were unsuccessful yesterday afternoon.
As matters unfold, the national lottery initiative has been mired in controversy since its inception eight years ago. The licence was initially awarded to a local company, Grow Mine, which failed to demonstrate adequate financial capacity. This led to a prolonged legal battle and appeals, eventually resulting in the licence being awarded to Ithuba Botswana, the second runner-up in the original bidding process.
Even within the Grow Mine consortium, disagreements and investor withdrawals further destabilised the project.
The national lottery has had a troubled journey since it was announced in 2017. Ithuba the new preferred bidder once halted Grow Mine’s own negotiations in 2020, accusing the Gambling Authority of flouting its own regulations regarding bidding.
At various points, the internal disputes and mounting controversy surrounding the lottery led authorities to consider abandoning the initiative altogether.
The national lottery was projected to generate substantial revenues for the operator and government, further boosting Botswana’s fast-growing gambling sector. Already, sports betting has seen rapid expansion, with outlets across the country reporting high levels of daily activity.
Despite the setback, the Gambling Authority continues to push forward with public education campaigns and increased regulatory oversight. New licences for casinos and sports betting operations have been approved, reflecting ongoing interest and activity in the broader gambling industry.