As an independent body that serves the public interest with integrity and professionalism, the NLC creates value by carrying out two primary activities. The organisation’s primary activities are defined as follows:

The NLC is mandated by legislation to regulate, monitor and, police lottery operations in South Africa to protect lottery operations from illegal lottery schemes, protect winners’ prize monies, implement measures to prevent under-age and excessive play and ensure responsible gaming. The NLC ensures optimum and balanced regulation of lottery operators through a regulatory model. Regulatory model, adopted from the paper The Influence of the Regulatory Environment on the Definition of Organisational Performance – The Example of the Sport Betting and Lottery Sector (2013) by Dr LR Meyer.

Information on regulatory activities performed in the year under review is detailed here.

The NLC is also mandated to distribute funds in a way that strategically supports the objectives of the National Development Plan.
The NLC carries out activities to ensure that funds are put to use successfully.

The Grant Funding Model is designed to promote and support the NLC’s strategic mandate by responding to socio-economic problems and leverage on opportunities through strategic funding. The key principle of the NLC’s funding model is to utilise NLC capitals to create opportunities for communities to realise their potential. The funding model is driven by an overall objective to Fund for Impact to maximise return on limited resources. This involves researching, evaluating, monitoring and closing off all projects funded. The diagram below demonstrates the NLC’s Funding Model:


The NLC relies on certain resources and relationships to carry out all operations. These have been categorised according to the six capitals of the International <IR> Framework. Within the unique operating context of the NLC, the capitals are defined as follows:

Financial capital  
The revenue derived from maximising revenue through regulation of the National Lottery Operator and Society lotteries. Revenue includes share of tickets sales, expired and unclaimed prizes, recognition of lottery licence fees, registration fees from society lotteries fees derived from imposing penalties, sundry income (unspent amounts returned by beneficiaries and amounts due from beneficiaries as a result of breach of grant agreement) and investment income.

Human capital  
The NLC’s skilled workforce who are catalysts for social upliftment and embody NLC values.

Intellectual capital  
The NLC’s intangible assets that work to enhance the day-to-day operations of the organisation. These include the NLC’s ERP system, the grant funding system and development research and feasibility studies, the NLC and National Lottery related logos and brands and reputation and the NLC Regulatory and Grant Funding Model procedures, processes and governance.

Manufactured capital  
The NLC’s tangible assets that work to facilitate the day-to-day operations of the organisation.
This includes the NLC’s buildings and technological tools.

Natural capital  
The natural resources that the organisation relies on to carry out operations and affects through its activities. This includes water, fuel, electricity and recyclable products.

Social and
Relationship capital  
The relationships and partnerships with individuals, communities and organisations that the NLC relies on to carry out operations and to create value.






© NLC 2018