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New moves in the lotto war

In a court battle to run the country's lucrative lottery, newly appointed operator Ithuba has accused its predecessor Gidani of failing to remove its signage and electronic gambling equipment from retail outlets selling the product.

Ithuba argues in documents leaked to Sowetan that the alleged failure to remove the equipment has had negative consequences for Ithuba's business.

At least 40 Ithuba sales representatives across the country last November deposed affidavits confirming that they had evidence that Gidani had failed to remove the equipment from retail outlets.

Sowetan has seen a letter in which Ithuba chief executive Charmaine Mabuza complained to the head of the National Lotteries Commission, Thabang Mampang, about the Gidani equipment.

"Unfortunately, the second licence holder has still not collected their terminals and point of sale materials," Mabuza said in a letter written in August.

"This leads to confusion in the marketplace among consumers, but more importantly, it hampers Ithuba's capability to install their own point of sale materials due to lack of space."

She emphasised that Ithuba has had numerous meetings with the commission and Gidani to request the removal of the equipment and materials.

"To date, we have not had any cooperation and the situation is now critical.

"We ask urgently for your intervention to either require Gidani to remove their materials or authorise Ithuba to do it," she said.

Ithuba spokeswoman Zukiswa Nomnganga told Sowetan there were many retailers that still had the Gidani equipment.

Gidani and Ithuba will on Tuesday square off over the operating licence at the North Gauteng High Court in Pretoria.

Gidani has applied to the court to review the licence awarded to Ithuba by Trade and Industry Minister Rob Davies.

Mabuza reveals in the court papers that Ithuba's sales revenues were more than double over its first 24 weeks as the lotto operator.

"Gidani's sales revenue over the same period grew by only 5%," she alleged.

Gidani chief executive Bongani Khumalo said: "In compliance with the stipulations in the licence under which we operated the National Lottery from 2007 to 2015, Gidani has removed all its point of sale equipment and consumables including shop-fit, lottery terminals, signage and coupons from the lottery retailers contracted during the previous term."

sibanyonim@sowetan.co.za

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