The Ethiopian Lottery Service (ELS) recently reiterated that the ban on sports betting in the country remains intact, following the revocation of all operating licenses in the sector seven months ago. The announcement, made on ELS's official Telegram channel last week, coincides with reports that fraudsters are taking advantage of the confusion surrounding the ban to target Ethiopian consumers.
"Currently, there is no legally licensed sports betting organization operating in Ethiopia," the regulator stated. They urged citizens to avoid engaging with or depositing money into illegally operating betting services, which may be found on various unregulated platforms, social media sites, or other unauthorized channels.
The warning was prompted by misleading information reportedly being spread by some sports betting operators through social media and other outlets. ELS emphasized that interacting with unlicensed businesses poses significant risks to individuals’ finances and personal data, making recovery of losses difficult since these entities are not legally sanctioned.
To combat these unlicensed operations, ELS encouraged the public to report them via the short code 9695 and stressed that it will continue collaborating with government bodies to safeguard "public interest, financial integrity, and the rule of law."
The current warning comes in the wake of a crackdown that started in November 2025, when Ethiopia’s National Intelligence and Security Service (NISS) arrested 24 individuals identified as owners and affiliates of sports betting companies. NISS alleged these individuals had hidden over ETB100 billion (approximately $620.5 million) in government revenue.
Claims surfaced that these funds were being transferred abroad through cryptocurrency exchanges and informal hawala networks. Some domestic payment processors were also accused of obscuring transaction data due to client confidentiality agreements. Given Ethiopia's status as one of the world's lower-income economies, the alleged concealment of such substantial sums raises significant concerns for authorities.
In response to the findings, ELS acted swiftly—the agency suspended the licenses of 22 sports betting companies on December 4, 2025, citing information received from NISS regarding the arrests. Just over a week later, on December 15, ELS revoked all remaining licenses in the sports betting sector.
However, ELS’s announcement did not directly mention the arrests, the individuals involved, or the figure of ETB100 billion. Instead, it referenced a nationwide review of the betting and financial sector due to concerns over illegal financial transactions that posed risks to national security. Neither ELS nor NISS has made any formal statements connecting the widespread license revocation to the specific case of the 24 arrested.
Notably, all 24 individuals detained in November had been released by late January 2026, although authorities have not clarified the status of any potential charges against them.
The Ethiopian business outlet Shega reported at the time of the December license revocations that industry insiders believed the betting sector was handling between ETB800 million and ETB1 billion in daily transactions prior to the shutdown. Despite the ban, trends indicate that this level of activity has not entirely vanished.
The ELS's latest notice also comes amid ongoing legal challenges stemming from this crackdown. Recently, the Federal High Court annulled the National Lottery Administration's suspension of Hulu Sport, citing procedural errors in the regulator's actions. However, Hulu Sport has not been permitted to resume operations, as the regulator sought and received a temporary stay on the court's ruling.
This judicial decision introduces uncertainty regarding the enforcement capabilities of ELS, yet has not reinstated Hulu Sport's license or reopened the market to betting operations.
In light of these developments, the July notice from ELS sought to clarify that recent court actions have not altered the legal standing of sports betting, emphasizing that no entity currently holds a license to provide such services in Ethiopia.
Though the existing ban prevails, government officials haven’t entirely dismissed the possibility of creating a regulatory framework for the sector in the future. During a February 2026 parliamentary session focused on a new sports proclamation, state minister of culture and sports, Mekiyu Mohammed, indicated that completely blocking betting or prohibiting betting technology would be "impossible" given current global trends. He suggested that Ethiopia should establish guidelines to harness potential benefits from the betting industry.
Beza Girma, CEO of ELS, noted that dividing oversight between two ministries has complicated effective regulation, policy implementation, and accountability in the sector. This discussion points to a shift in focus among Ethiopian authorities, from outright prohibition of the betting industry to considerations on how best to govern it.
For international business operators and investors eyeing Ethiopia's approximately 130 million consumers, the situation remains clear: there is no licensing framework currently in place, no ongoing consultations regarding a return to a regulated market, and no timeline for when operations might resume.
