Lottostar (Pty) Ltd and Others v Ithuba Holdings (Pty) Ltd and Others

The National Lotteries Commission (NLC) and Ithuba Holdings, the exclusive national lottery licensee, brought an application in the Mpumalanga High Court seeking a declaratory order and interdict against Lottostar, a licensed bookmaker, contending that Lottostar’s practice of offering fixed-odd bets on the outcome of lotteries was unlawful under the Lotteries Act 57 of 1997. Lottostar relied on a bookmaker’s licence issued by the Mpumalanga Gambling Board under provincial gambling legislation. Betting World intervened as a respondent, and the Mpumalanga Gambling Board opposed the relief. The High Court initially disposed of the matter on an intergovernmental relations point, but the Full Court overturned that decision and granted the declaratory and interdictory relief against Lottostar. On appeal to the Supreme Court of Appeal, questions arose regarding the non-joinder of other potentially affected parties, including other provincial gambling authorities, bookmakers, the National Gambling Board, and Hollywood Sportsbook, given the broader constitutional and legislative implications of the dispute.

The adjudication of the appeal was stayed. The Court directed the attorneys for the National Lotteries Commission and National Gambling Board to notify identified further parties of the proceedings and the Full Court order, provide access to the papers, and report back on compliance. Provincial Gambling Authorities were directed to notify affected bookmakers, who were given an opportunity to indicate whether they consented to be bound by the judgment or wished to participate. Costs were reserved for later determination.

The decision is significant for its clarification of joinder principles in appellate proceedings, particularly in cases raising constitutional and statutory interpretation issues with nationwide regulatory impact. It underscores the duty of courts to ensure that all parties whose rights may be affected by a judgment are afforded an opportunity to participate, even at a late stage, and illustrates a pragmatic procedural approach to avoid unnecessary delay and wasted costs in complex test cases involving concurrent national and provincial legislative competence.