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Are Lottery Winnings Subject to Taxation?

This frequently asked question became more popular following the announcement of the sole, PowerBall winner of the biggest ever lottery jackpot in South Africa.

In an interview with Tony Ndoro on eNCA earlier in August, the National Lottery Operator’s (ITHUBA) public relations manager confirmed that the punter who scooped the R145 million PowerBall jackpot would receive all his winnings as they are, tax free!

Why are lottery winnings not taxed?

Member of the Executive team at ITHUBA Khensani Mabuza, says: “The Lottery winnings are regarded as capital in nature and not included in the taxable income of the individual. Once the winner starts generating interest from their winnings, only the accumulated interest will be subjected to tax. The amount of interest taxed will of course depend on the amount of money the winner chooses to invest.”

Mabuza goes on to say that it is fair for the new millionaires to keep all of their new wealth: “An unexpected windfall worth millions can really change the receiver’s life, but the extent of its impact can be quite limited once the taxman takes his cut. A lot of the lottery winners are really just ordinary South Africans who deserve a chance to a new life. It is a great thing that these winners have an opportunity to start their new life with each and every single cent that they have won. The fact that the interest generated from their winnings then becomes taxable, puts a responsibility to the winners to make sound investment decisions that will give them good returns”, said Mabuza.

ITHUBA assists all their jackpot winners with financial expertise to help them make wise financial decisions that will maintain their newly acquired wealth.

If you are one of the regular lottery punters, you can rest assured that should you strike it lucky, you will receive your new millions, tax free.

The breaking news search for the R145 multi-millionaire from Mpumalanga is over, the winner has claimed his prize!

The overnight multi-millionaire is still in disbelief. Reminiscing on the day that he found out that he had won, the 34-year-old said:

“It was at about 2PM on Saturday (4 August 2018) when my life changing moment happened, I went onto the National Lottery website and matched my ticket against the draw results. I was in shock when I realized that I had won,” he said.

 

The avid engineer from Evander in Mpumalanga reported for work on Monday with the winning ticket stashed in his sock for safe keeping.

“Although it still felt like a dream, I comprehended that I had won and I didn’t want to part with my ticket,” he said.

 

Accompanied by his wife in matching outfits, the young couple came to the ITHUBA offices in Sandton on Tuesday. He explained that the reality that he had won the jackpot only sunk in after he had his ticket verified at the ITHUBA offices.  The business minded winner said that he has always dreamt of starting and running his own business and this money would finally make his dreams come true without stressing about funding.

 

Describing himself as a careful spender, he expressed appreciation for the financial advice service that ITHUBA provides to their winners. The winner also particularly appreciated the psychological counselling that the Operator offers to winners, acknowledging that this instant large sum of money must be accompanied by psychological assistance.  

 

Asked if he used any special method to choose his numbers, the winner said: “I had a good feeling about these numbers since last week, I played the numbers for Tuesday’s PowerBall, but didn’t win. I played the same numbers again on Friday and I won the PowerBall.”

ITHUBA has confirmed that the winner spent R20 on his winning ticket. The ticket was bought at a Total Garage in Evander, Mpumalanga. 

Five numbers was all it took to change the life of a Nelspruit man! Our Tuesday 29 May 2018 PowerBall Division 2 prize winner had this to say about his exciting win of R121,906.70:

“I only spent R30 on my ticket, and that is the highest amount I usually spend to play a single draw”.

The winner also plays LOTTO and PowerBall regularly, often spending around R200 a month on tickets. This time around his luck paid off!

He was at a shop when he found out he in fact held a winning ticket. He told his family about his win, put his ticket in a bag for safekeeping and carried this bag with him everywhere, until he could visit an Ithuba Regional Office to make his claim.

He has yet to decide how he plans to use his money, but one key point he raised was his intent to assist his family however he can, before investing the rest of his money. He is extremely delighted to have won, but also confesses that he has always believed he would win one of the National Lottery games – which is why he has kept playing.

Currently employed, and being a careful spender, our winner plans to keep working – simultaneously expressing gratitude of receiving a sum of money he feels will make “a very huge difference” in his life.

He enjoys fishing in his spare time, and hopefully this win will afford him the opportunity to spend more days by the riverside with friends and family.

The PowerBall Draw on 5 June 2018 produced two winners of R26,896,380.16 each! While one winner declined to comment, this Eastern Cape winner had this to share about his PowerBall jackpot winning experience:

When asked what other National Lottery games he plays, our winner said, “PowerBall Plus, LOTTO Plus, and SportStake 13. This time I have won PowerBall although I’ve always thought I would win the LOTTO.”

From a manual selection with a R5.00 wager, this is the first time he has won such a large sum of money – R22.50 being the highest amount he has ever spent on a single wager, and an average monthly spend of R350 being the most he spends on other National Lottery games.

How did he find out he had won?

He saw the results during the Draw Show on TV, then told his wife and son, who were with him at the time. He also told them not to tell anyone. He then kept his winning ticket in a packet inside the pocket of a shirt until he could claim it at a regional Ithuba Office.

What does he plan to do with such a momentous windfall?

“I currently work at a national retailer as security guard. When I am not at work, I usually take on odd jobs just to bring in that extra money to support my family. Without a doubt, this money will make a huge difference in my life. If people ask me where it comes from, I will be honest – I won the Powerball because I’m an avid player”.

A naturally careful spender, the PowerBall jackpot winner has big dreams for not only himself, but also his family, “I am very excited, but I am trying to control myself – I don’t want this money to change me. I simply plan to send my children to university. I would also like to build my family a house, and I have plans to make a donation to my church”.

R64,384.50 – that’s a whole lot of cash when there always seems to be more month at the end of your paychecks! We asked our 1st June 2018 Division 2 PowerBall winner to share his winning experience, and this is what he had to say:

“I play PowerBall and LOTTO. I never thought I would one day be a winner! The most I have ever spent for a single draw was R300, and mostly R600 a month – this time, when I spend only R15 and I become the winner of so much!”

He was at a shop in Nelspruit when he found out his numbers were in fact winning numbers. Very happy with his good fortune, he has so far only told his family about his favourable turn of luck. While he did nothing specific to safeguard his winning ticket, besides store it in his wallet, he shares that his biggest, secret, dream has always been to win the National Lottery. He expressed feelings of elation as he told Ithuba Officials about his trip to the Regional Office to claim his winnings.

He is currently employed, is a careful spender and is as yet undecided on what he would like to do with his money. He enjoys watching soccer in his spare time.

How would winning any National Lottery game change your life?
Buy your ticket through a National Lottery retailer or through our banking partner channels today and find out! Register here to play online: https://www.nationallottery.co.za

Whether his luck was written in the stars or not, our latest PowerBall winner is definitely thrilled he took a chance and played PowerBall. Winning R500,587.10 from the Tuesday 08 May PowerBall draw sees this KZN traditional healer making big plans for himself and his family:
He says the most important thing he wants to spend his winnings on is marriage and a wedding. He plans to take care of all his partner’s and family’s needs as best he can with his good fortune.

Spending just R45 this time around, our winner usually spends on average R100 per draw and approximately R350 a month playing other National Lottery games.

He was at the shop when he found out he held a winning ticket. Jubilant, he shared his news with close friends and family. He wrote his personal details on the back of his winning ticket and kept the ticket inside his ID book until he could visit an Ithuba Regional Office to claim his winnings.

While a careful spender, he is very excited about his PowerBall win. He plans to build a separate house for his children and enjoy more peaceful family life, without the stress of financial burden.

When asked what other National Lottery games he plays, our winner said he plays them all besides SportStake 13. You too can be a winner when you Phanda. Pusha. Play.

Buy your tickets at any National Lottery retailer, or simply visit our website, register and play: https://www.nationallottery.co.za/

The South African National Lottery’s partnership with various banks has brought convenience to lottery players who lead busy lives. Through their banking apps, players can play online at anytime, anywhere and enjoy convenient benefits. A 37-year old Kwa-Zulu Natal Engineer, who recently won a second division prize of LOTTO, has attested to this.

He says he usually plays LOTTO, PowerBall and the PLUS games in the comfort of his home via his online banking app. This is a convenience for him considering his busy work schedule as an Engineer.

Earlier in May, he won over R148, 000 in the second division of LOTTO winnings. “I was at home going through my emails when I realised that I had received an email from the bank, informing me that I had won a large sum of money and that I had to get in touch with the National Lottery to claim my prize”, said the winner.

When the winner went to claim his prize, he was relaying his gratitude to everyone he came into contact with at the National Lottery’s office in Umhlanga. “I am very excited to be a winner of over R140 000, I have never won anything before and I have always wondered what it would feel like to win big. Had it not been for that email notification, I probably wouldn’t have realised that I was over R140 000 richer. Playing LOTTO online really is a convenience”, he said.
The winner said that he is passionate about charities so he intends to donate some of his winnings to a children’s home. He bought his online ticket for R150, via a Quick Pick selection method.

To register to play via the National Lottery’s website, visit: https://wallet.nationallottery.co.za

Players must be 18 years and older. All players are encouraged to play responsibly.

For a man who drives a truck all day and sometimes all night, a comfortable bed at home is much anticipated and greatly appreciated. This is the everyday life of a 46 year old Gauteng man who has been a truck driver for most of his of his adult life. On the night of 21 March 2018 however, when he had the opportunity to sleep in the comfort of his home, he chose to sleep in a car. His reason? He was now over R9 million richer! This is his story:

“I was watching the draw on SABC 2 to see if my ticket had matched any of the draw numbers. When I realised that my ticket had matched all six of the LOTTO PLUS 1 numbers, I was just in disbelief and could not comprehend that I had become a millionaire!” said the winner.
“I wanted to hide my ticket in a safe place until I could be able to go claim my money, I decided that my car was the safest place to hide it. But as soon as I went back to the house, I constantly wanted to go back to the car to check if my ticket was still there, so I decided to sleep in the car so that I could guard it.”

The winner says it has always been his dream to build a house big enough to accommodate his family comfortably, a house that is beautifully furnished in modern taste. However, this kind of life seemed like a far-fetched dream for him, considering his low salary as a truck driver. Now that he is over R9 million richer, this and more is all possible!

The winner intends to also start a new business and invest in the future of his children. He wants to take up fishing as his new hobby as a millionaire.

Players must be 18 years and older. All players are encouraged to play responsibly.

The South African National Lottery has announced that there is over R25 million worth of two PowerBall Plus jackpots that have not yet been claimed.

The first ticket, worth over R21,7 million was bought on Friday 30 June 2017 for R45 at 19:33 pm. The ticket will expire on 30 June 2018.

The second ticket, worth over R3,4 million was bought on 21 July 2017 for R22. 50 at 16:47pm. The ticket will expire on 21 July 2018.

Both tickets were bought at Ifalethu Trading Store in Moshoeshoe Road, Sebokeng.

All players are urged to check their tickets and winners must come forward to claim their prizes. If they don’t the ticket claim period will expire and the winning amount will be transferred to the National Lotteries Distribution Trust Fund (NLDTF) for the benefit of good causes.

The R58 million LOTTO jackpot that was won on Saturday 12 May went to a Cape Town woman who is in her mid-50s.

The winner said that she is a regular PowerBall player but seldom plays the LOTTO. She decided to play when she saw the high amount of the estimated jackpot prize. Discovering that she was in fact the jackpot winner however, happened quite gradually. She tells her story:
“After seeing the estimated jackpot prize, I started daydreaming about how this could change my life and make it even better. On Saturday, my husband and I decided to go out for dinner. On our way to the restaurant, I insisted to my husband that we stop at a retail store where I could play the LOTTO, which I did. I put my ticket away quickly after playing and forgot about it for the evening” said the Winner.

“The next day, my children had arranged a special mother’s day celebration and we were all going to meet at my daughter’s house. On my way to my daughter’s house, I decided to check the ticket at a retail store because I had seen on the National Lottery website that one person had won the lottery jackpot. When I inserted my ticket in the machine to check if I had won anything, the machine issued a little slip with a note that read: ‘Please contact the National Lottery head office.’ I went to the cashiers to ask them if they could give me more details, and they suggested that I go to the Post Office.

When I arrived at my daughter’s house where all my children and husband were gathered, I asked my son to check my ticket. After checking this, my son immediately told me to write my name and ID number at the back of the ticket because I had matched all 6 numbers. My body just went numb, I was in total disbelief. All I could do was drink my gin!

I am fortunate that I already have a comfortable life. I will continue working for the next 6 months or so just so the hand over process at work is smooth. This will also give me enough time to carefully think about how I will spend my money. Ideally, I would like to invest 90% of my winnings and live off of my investments for the rest of my life. I’m grateful that I got my early retirement.”

The National Lottery recently ran a national competition on Metro FM to celebrate their 18th birthday. The Freedom to Phanda competition gave listeners an opportunity to win a massive R100 000 instantly. One of the winners, 26 year old Nkululeko Motha was in disbelief when he won the prize over his hopeful opponent.

“The competition rules were clear and we were both given a chance to ask clue questions. When it was evident that my opponent had given the wrong answer, I knew my prayers had been answered and I just went for it—that R100 000 was mine!” said Nkululeko.

Nkululeko holds a Diploma in Entrepreneurship from the University of Johannesburg, and lives with both his parents and siblings. “I want to do so much for my family but my means have always been limited, this money will make a huge difference in our lives.”
He intends on using some of the money to develop his fast-food business that he runs from home. “Expanding the business will result in more income, which I hope to use to help my brothers through school. My younger brother has had to take a gap year this year due to a lack of funds for tertiary education. He had applied for a student loan which he was strongly relying on, but did not succeed.”

Also top of his to do list, is to pay off his mother’s clothing account debt and to fix his father’s bakkie. Nkululeko is one of the 18 winners who each won the R100 000 prize. Other winners are: Jannie Vyner, Joseph Mohale, Ngwako Ramorei, Elizabeth Jantjie, Peter Pule, Sixolile Gatya, Julia Matsepa, Winnie Digomo, Lebohang Lebona, Pretty Jele, Juliet Masombuka, Pheeha Masemola and Kabelo Maluleke. The other 4 winners, who opted not to be named, were beyond excited to win the cash prize, each proclaiming it will go a long way in helping them better their lives.

Contestants who did not win the competition need not despair. The National Lottery has launched a #Liveitup PowerBall Style Competition which gives participants an opportunity to win weekly all-inclusive luxury prizes, such as a trip for two to Cape Town, a trip to for two to an international grand prix, a trip for two to the Serengeti, a trip for two to Dubai including a shopping experience, and the grand prize: a trip for 4 to a private island. The competition closes on 16 June 2018. More details on the competition can be found here: https://www.nationallottery.co.za/live-it-up/

Players must be 18 years and older. All players are encouraged to play responsibly.

For millions of unemployed South Africans, R4 million can really go a long way for them and their families. With this amount of money, dreams of owning and living in a decent home; accessing basic quality education for their children; building a family business to sustain the family for generations to come—are all dreams that can come true.

This is now the reality of a 36 year-old Kwazulu-Natal (KZN) man who recently won a PowerBall PLUS jackpot in March, walking away with over R4, 5 million! When the man visited ITHUBA’s regional offices in KZN to claim his prize, he was ecstatic and in disbelief that he can finally honour his financial responsibility as the head of his family.

“When I discovered that I was the winner, I wrote my name at the back of the ticket as soon as possible and I kept it safe in my wallet, until I could claim my prize. All I could think about was the positive impact this win will have on my family life, I can finally take care of them better.” – jackpot winner (Translated from isiZulu)

Asked if he was planning to make extravagant changes in his life, the winner said no. “I have always been a careful spender. I intend to remain disciplined with my money, to only spend on the necessities of my family and ensuring that we remain financially stable. I do not want to tell a lot of people about my jackpot prize, I only told my best friend about it because I trust him very much and I know he will not try to exploit me”, he said.

The winner bought his Powerball PLUS ticket for R15 at a shop in Umhlanga, KZN. “I have always had faith that one day I would win either the LOTTO or PowerBall jackpot. I have always made sure that I tick the PowerBall or LOTTO PLUS options, because through these options players get a second chance to win. That one tick on the PowerBall PLUS made all the difference for me this time because it’s through this option that I won”, said the jackpot winner.

While there is no claim that this jackpot prize, or others like it, completely eliminate unemployment and poverty in South Africa, it is notable that an entire family has received financial relief in a big way. In addition, many South African communities continue to benefit from the National Lottery though the participation of the citizens, because for every ticket bought, a portion of the sale goes towards a worthy cause that supports and develops communities in South Africa.

Players must be 18 years and older. All players are encouraged to play responsibly.

18+ Play Responsibly Proudly Brought To You By Ithuba National Lotteries Commission

Ithuba Holdings RF (Proprietary) Limited

All rights herein are strictly reserved. If you use this Web site you agree to the terms and conditions in this user agreement.

* Estimated Jackpot - is the estimated value of the jackpot which is estimated based on tickets sold for the particular draw on a particular game.

** Guaranteed Jackpot - is a set value of the Jackpot which is guaranteed for the particular draw on a particular game

*Estimated
*Estimated
R38 Million*
Next Draw: Closing Time: 8:30 PM
Last Draw: 07 May 2025
Remaining Time
*Estimated
*Estimated
R5 Million*
Next Draw: Closing Time: 8:30 PM
Last Draw: 07 May 2025
Remaining Time
*Estimated
*Estimated
R1 Million*
Next Draw: Closing Time: 8:30 PM
Last Draw: 07 May 2025
Remaining Time
*Estimated
*Estimated
R51 Million*
Next Draw: Closing Date: 13 May, 2025
Last Draw: 09 May 2025
Remaining Time
*Estimated
*Estimated
R4 Million*
Next Draw: Closing Date: 13 May, 2025
Last Draw: 09 May 2025
Remaining Time
GUARANTEED WINNERS
Next Draw: Closing Time: 8:30 PM
Last Draw: 09 May 2025
Remaining Time
*Estimated
R196,000*
Next Draw: Closing Date: 12 May, 2025
Last Draw: 09 May 2025
Remaining Time
R 30
*Estimated
R620,000*
Next Draw: Closing Date: 12 May, 2025
Last Draw: 09 May 2025
Remaining Time
R 30
10 X MERCEDES BENz C200 CABRIOLETS
Next Draw: Closing Date: 01 Jan, 1970
Last Draw: 10 Jan 2020
Remaining Time

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