Lottery operator’s offer to change software provider hit hard
National lottery operator Ithuba has suffered a heavy blow in its attempt to change software vendors without approval from the regulator, the National Lottery Commission (NLC).
ITWeb recently reported that NLC, in October, launched an emergency court ban request to prevent Ithuba from replacing IGT, a global company that has been providing software services to the lottery provider since 2015.
In a statement released today, the NLC said it “welcomes and approves the decision taken by the Gauteng High Court on Friday, December 3, 2021, to ban and prevent the national lottery operator Ithuba from changing as a technology and gaming platform partner for the South African national. lottery without the authorization of the National Lotteries Commission, which is the regulator of lotteries and sports pools in South Africa, and that of the Minister of Commerce , industry and competition â.
Everything was ready for Ithuba to migrate its software platform to the local software service provider Paytronix.
ITWeb understands that a Rand 250 million deal with Paytronix was reached before the NLC’s judicial ban was launched at the 11th hour.
It was the NLC’s argument that by appointing Paytronix as the service provider, Ithuba had acted illegally and violated the Lottery Technology Provision and Support Agreement.
In court documents, the regulator said it wanted to ban and prevent Ithuba from installing Paytronix from December 2021 and “commissioning” its Paytronix lottery system.
He also wanted the lottery operator to comply with the licensing agreement by reverting to the terms of his pre-existing agreement with IGT. The NCL also wanted Ithuba to pay the costs of the lawsuit.
However, Ithuba was of the opinion that IGT was holding the national lottery operator as a ransom, while eliminating local players in the process.
Since 2015, Paytronix has been the ICT solution provider for SA’s third national lottery operator, Ithuba.
In the first three years of his appointment, Paytronix Systems managed the data operations of over 1.6 billion transactions on behalf of Ithuba, with a transaction value of over R19.5 billion.
The company designed and continues to operate the Ithuba mobile e-commerce platform, which enables lottery players to enjoy the online gaming experience.
In its statement, the NLC asserts that it has a legal obligation to maintain, protect, monitor and support the integrity of the national lottery.
This involves constantly evaluating and reviewing the operations relating to the national lottery, thus ensuring that the interests of stakeholders are not compromised, he notes.
“In accordance with the Lotteries Law No. 57 of 1997, as amended and the National Lottery Operating License, the NLC receives proposals from the operator for changes such as new games, game channels and changes to the rules of the game and prize payment structures. These proposals are evaluated and recommended to the board of directors, which notifies the Minister for approval.
In November 2021, following a series of engagements with Ithuba, the NLC filed an emergency ban against Ithuba regarding the validity of changes to the lottery technology supply and support agreement, says authority.
He adds that the judgment rendered by the High Court affirms the authority and responsibilities of the regulator to ensure the fair and transparent functioning of the national lottery as follows:
- Prohibit and prevent Ithuba from giving effect to the amendment to the Lottery Technology Provision and Support Agreement and install a new system from December 1, 2021.
- Order Ithuba to comply with the license agreement by reverting to the terms of its pre-existing agreement with the Ministry of Trade, Industry and Competition.
“The NLC remains committed to ensuring that the South African National Lottery is a safe and reliable marketplace, ensuring that the systems in place have the necessary assurance to protect the interests of participants and the general public,” he concludes.