National Lotteries Board v Bruss and Others

The South African Children’s Charity Trust conducted a televised competition known as ‘Winikhaya’, broadcast by the SABC, to raise funds for charitable causes. Members of the public could enter primarily by sending a premium-rated SMS costing R7.50 per entry, with each SMS constituting one entry into a lucky draw for substantial prizes, including a home loan. An alternative free postal entry method via postcard was later introduced. The National Lotteries Board contended that Winikhaya constituted an unlawful lottery under the Lotteries Act 57 of 1997 and sought declaratory relief. The Pretoria High Court dismissed the application, holding that the Board lacked standing or power to seek such a declaration. The Board appealed to the Supreme Court of Appeal.

The appeal was upheld. The order of the High Court was set aside and replaced with a declaration that the Winikhaya competition is not a promotional competition and is an unlawful lottery under sections 56 and 57 of the Lotteries Act. The trustees of the Trust and the SABC were ordered, jointly and severally, to pay the Board’s costs in both the High Court and the appeal, including the costs of two counsel.

This case is significant for clarifying the enforcement powers of the National Lotteries Board, confirming that it has implied authority to approach courts to police and enforce the Lotteries Act. It provides authoritative guidance on the interpretation of ‘subscription’ and ‘promotional competition’ under the Act, and establishes that charitable fundraising competitions involving payment and chance may still constitute unlawful lotteries if they do not meet statutory requirements.