GAMING FOR AFRICA Betfred Acquires Majority Stake in South Africa’s Lottostar


UK bookmaker Betfred has taken a significant step forward in South Africa through a partnership with LottoStar, the country’s largest online betting company. Betfred has now taken a majority shareholding in the business, which offers fixed-odds numbers betting and live games on its online platform. “LottoStar has quickly developed itself as a leading


brand, recognized nationally across South Africa after high-profile marketing campaigns and their continued efforts to uplift and rebuild communities through their Corporate Social Responsibility initiatives across SA,” Betfred describes the South African business in a press release. The move is expected to further add to Betfred’s


existing presence in the jurisdiction. The brand currently operates 53 shops in South Africa, and an online business following the acquisition of Betting World and Sepels Sportsbet. “We are delighted to partner with such a fast-


growing company in South Africa,” said Betfred Chief Executive Officer Joanne Whittaker. “The business will not only complement our activity in South Africa but our international businesses in the United States and Europe.”


Joanne Whittaker


Tasoulla Hadjigeorgiou “We look forward to working closely with the


LottoStar team to support the continued growth of the business providing world-class games and services to the online betting market in South Africa,” Whittaker further commented. “LottoStar was founded in 2014 as a family-run


business with an innovative model to offer a fixed-odds betting online platform in South Africa,” commented LottoStar’s founder and Chief Executive Officer, Tasoulla Hadjigeorgiou. “As an online betting leader in South Africa, we are excited to partner with one of the UK’s best bookmakers.” According to Hadjigeorgiou, the partnership has the


potential to broaden LottoStar’s offering and provide its customers with “the highest quality services.” The


deal is also expected to pave the way for greater collaboration and expansion, and the executive said LottoStar is “excited to grow” its family. Betfred currently operates 1,470 shops in the UK and a successful online business. In addition to South Africa, the Warrington-headquartered bookmaker has also expanded into other jurisdictions such as the US and Spain. The company had already announced it would be


seeking to increase its footprint in South Africa following the Betting World and Sepels Sportsbet acquisition. Upon finalization of that deal, Betfred’s Chief Commercial Officer (CCO), Phil Siers, hinted at future plans, remarking the company “intends to make a major investment in Africa over the coming years.”


Lottery Contractor gave Millions for SA Lotto Board ex-Chair’s Mansion


A private company that has been paid millions for providing services to the National Lotteries Commission (NLC), allegedly contributed R2-million towards the luxury mansion of Alfred Nevhutanda, the NLC’s former board chairperson. Neo Solutions was paid over R26 million in fees by the NLC, according to NLC commissioner Thabang Mampane in answer to a recent parliamentary question. According to an


investigative article published by GroundUp, the Special Tribunal issued a preservation order freezing the mansion and its contents. The order was granted against Nevhutanda and Vhutanda Investments, a private company that owns the property. Nevhutanda is the sole director of the company, according to official company records. Also included in the order were five non-profit entities and two private companies, as well as 20 people involved with them. Between them, the non-profits received around R100 million in lottery grants, and they in turn, directly or indirectly, allegedly contributed millions of rands to help pay for Nevhutanda’s lavish home, according to the SIU.


Phillemon Letwaba, National Lottery Commission COO


GroundUp also understands that new charges might be added. An NLC source told GroundUp that the new


A photo of the former National Lotteries Commission


(NLC) board chair Alfred Nevhutanda’s house taken from an estate agent’s advert. (Copied for fair use)


In a further blow to the reputation of South


Africa’s National lottery, Phillemon Letwaba, National Lottery Commission COO, has been suspended, facing a new corruption inquiry. This is the third time the COO has been suspended, and he continued to earn more than R3 million during his previous suspensions. The new board of the National Lotteries


Commission (NLC) has served chief operating officer Phillemon Letwaba with notice of their intention to suspend him. This notice, delivered last week, comes after an


earlier internal inquiry cleared Letwaba of money laundering and abusing his position to enrich himself and his family. Letwaba is expected to be suspended as early as this week. He was also informed that he would face the same four charges on which he was previously cleared.


board had asked NLC Commissioner Thabang Mampana to suspend Letwaba, but said that she did not comply with their instructions. This apparently led the board to take the matter into its own hands. This will be the third time that Letwaba has been suspended. In March 2020, he was forced to take a leave of absence on full pay. He returned to work around July 2021, having earned over R3-million during his 17-month absence. In October 2021, less than three months later,


he was again suspended on full pay. He returned to work in March 2022, having earned close to R1.5-million during this absence. Just four months later, he has been sent another letter of intention to suspend him. At the first disciplinary inquiry, Letwaba was


accused of conflict of interest and using front companies to funnel money from non-profit companies that received Lottery grants. Charges against him also included


contraventions of the Prevention of Organised Crime Act, as well as sections of the Lotteries Act and the Public Finance Management Act. He pleaded not guilty to all charges.


These articles first appeared on GroundUp. AUGUST 2022 25


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