Ithuba Holdings (Pty) Ltd v Lottostar (Pty) Ltd and Others (A46/2020) [2021] ZAMPMBHC 39 (30 August 2021)

Ithuba Holdings (Pty) Ltd v Lottostar (Pty) Ltd and Others (A46/2020) [2021] ZAMPMBHC 39 (30 August 2021)

The court held that neither Ithuba Holdings nor the National Lotteries Commission are organs of state for purposes of section 41 of the Constitution and the Framework Act, as the Commission is a public institution excluded from the Framework Act's application. Consequently, the dispute is not intergovernmental and the requirement to exhaust alternative dispute resolution mechanisms does not apply. The preliminary defence of non-joinder was rejected, as the relief sought is against Lottostar only and does not affect other bookmakers or authorities. On the merits, the court found that Lottostar's activities in accepting bets on the outcome of lotteries are unlawful under section 57 of the...

Citation
[2021] ZAMPMBHC 39
Parties
Appellant: Ithuba Holdings (Pty) Ltd; Respondent: Lottostar (Pty) Ltd; Respondent: Mpumalanga Gaming Board; Respondent: Betting World (Pty) Ltd; Respondent: National Lotteries Commission
Court
Mbombela High Court, Mpumalanga
Jurisdiction
South Africa
Judgment Date
30 August 2021
Case Number
A46/2020
Procedural Posture
Civil Appeal / Full Court Appeal From High Court, With Leave From SCA
Outcome
Appeal upheld. The order of the court a quo is set aside and substituted.
Judges
Mashile, Roelofse
Legal Topics
Lotteries Act Interpretation, Intergovernmental Dispute, Non Joinder, Unlawful Gambling, Exclusive Licensing
Commercial and Corporate Civil Procedure Lotteries Act Interpretation Intergovernmental Dispute Non Joinder Unlawful Gambling Exclusive Licensing

Case Brief

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Parties

Ithuba Holdings (Pty) Ltd

Appellant

Lottostar (Pty) Ltd

Respondent

Mpumalanga Gaming Board

Respondent

Betting World (Pty) Ltd

Respondent

National Lotteries Commission

Respondent

Procedural Posture

Civil Appeal / Full Court Appeal From High Court, With Leave From SCA

Legal Issues

  1. 1 Whether Ithuba Holdings and the National Lotteries Commission are organs of state for purposes of section 41 of the Constitution and the Framework Act.
  2. 2 Whether the dispute between Ithuba and the Mpumalanga Gaming Board is an intergovernmental dispute subject to mandatory alternative dispute resolution.
  3. 3 Whether the preliminary defence of non-joinder is valid and necessitates joining additional parties.

Ratio Decidendi

The court held that neither Ithuba Holdings nor the National Lotteries Commission are organs of state for purposes of section 41 of the Constitution and the Framework Act, as the Commission is a public institution excluded from the Framework Act's application. Consequently, the dispute is not intergovernmental and the requirement to exhaust alternative dispute resolution mechanisms does not apply. The preliminary defence of non-joinder was rejected, as the relief sought is against Lottostar only and does not affect other bookmakers or authorities. On the merits, the court found that Lottostar's activities in accepting bets on the outcome of lotteries are unlawful under section 57 of the...

Court Disposition

Appeal upheld. The order of the court a quo is set aside and substituted.

Orders

  • The scheme, plan, arrangement or system of Lottostar whereby it offers bets, whether or not of a fixed-odd nature, on the outcome of lotteries is declared unlawful.
  • Lottostar is interdicted from offering bets, whether or not of a fixed-odd nature, on the outcome of any lottery.