Uncertainty kicks in after lottery license cancellation
Pauline Dikuelo | Monday July 28, 2025 10:55
The aggrieved party in the cancelled process, Ithuba Botswana, is also reserving its legal rights in the matter, having invested heavily over the years up until the final stretch when the matter collapsed.
The uncertainty comes after the Ministry of Trade and Entrepreneurship cancelled the country’s first-ever lottery, which was awarded to Ithuba Botswana. Highly authoritative sources told Mmegi the cancellation came due to the government’s unhappiness with the process. Reached for comment this week, Ithuba Botswana chair, Todd Mangadi, confirmed receiving formal communication from the Gambling Authority indicating that the Minister of Trade and Entrepreneurship has decided not to proceed with the lottery. He said a license agreement was negotiated between the two parties but never signed.
However, Ithuba is currently reviewing all available legal options, saying the decision to halt the process raises serious concerns about procedural fairness, regulatory certainty, and “the message to investors”.
“Ithuba reserves its rights and will pursue appropriate remedies in line with the law,” Mangadi told Mmegi in written responses.
He said Ithuba was not certain of the next steps in the lottery process.
“Beyond the cancellation letter received from GA, we have not received any formal communication outlining steps or the possibility of a revised process. “We remain open to dialogue with the relevant authorities and hope that a constructive path forward can still be found,” the chairman said.
Meanwhile, Mmegi has seen letters indicating that the Gambling Authority sought to persuade the Ministry not to do away with the lottery process. In a letter dated early July seen by Mmegi, the Authority asked the Ministry to endorse the award of the licence, saying over 200 jobs would be created, with P200 million into the National Lottery Distribution Fund for charitable causes, youth development, and others.
The Authority also warned that by not endorsing the award of the licence, the Ministry could open itself up to litigation. Mmegi is informed that at a July 10 meeting, the Ministry put its foot down and insisted that the process could not proceed.
Concerns raised by the government primarily centre on the ownership stake allocated to citizens, which was deemed both insufficient and lacking clarity regarding the actual beneficiaries. This publication has learnt that the government is clear that it wants 50% or more shares reserved for Batswana.
For its part, Ithuba says it has reserved a total of 45% ownership for Batswana citizens, noting that these citizens shareholders were not passive or symbolic participants.
“These citizen shareholders were not passive or symbolic participants — they were carefully selected for their ability to contribute meaningfully to the business and were positioned to play active strategic and operational roles in the National Lottery,” Mangadi told Mmegi. “Our empowerment model is built on genuine inclusion and shared value, ensuring that local partners are not only beneficiaries but also decision-makers and contributors to the long-term success of the National Lottery in Botswana.”
Mmegi is informed that any talks between the two sides will focus on the assurances of broad-based citizen participation, as well as addressing other concerns around the process.
Top-level government sources told Mmegi that, should the talks fail, a fast-tracked restart would be initiated in which the entire process would be recommenced, possibly by December.
Ithuba Botswana, which was the preferred bidder for the 10-year license to operate the national lottery, had concluded its negotiations with the Gambling Authority and was just waiting for the final endorsement from the Ministry before launching this year.
The process was initially completed under the tenure of the former Minister of Trade and Industry, Mmusi Kgafela. However, due to the change in administration, the Authority had to brief the new Minister of Trade and Entrepreneurship, who reportedly raised concerns about some of the terms of the lottery.
After the original tendering for the license, Ithuba Botswana was the second runner-up in the bidding to establish the national lottery. The Authority subsequently booted out the then-preferred bidder, Grow Mine, after the citizen consortium reportedly failed to demonstrate the financial muscle required to kick-start the lottery.
The national lottery has had a troubled journey since it was announced in 2017. The process has been embroiled in bitter legal disputes, several of which have gone to the courts.
At some point last year, the battle to control the lottery license grew so intense that recommendations were made to abandon the project entirely. Ends...