Ethiopia is set to relaunch its sports betting and digital lottery sectors, aiming for stricter regulations following a draft audit revealing a Br27.5 billion shortfall in expected payments to the government. This initiative comes after the revocation of all sports betting licenses in December 2025 and ongoing enforcement against operators amid a pending legal challenge.
The Ethiopian Lottery Service (ELS) confirmed in July that no active operators possessed valid licenses, with no announcements yet regarding a new licensing procedure or re-opening date.
A report from Fana Media Corporation highlighted that the audit indicated that sports betting and lottery operators processed a total of Br199 billion during the review period. Allegedly, one operator was responsible for Br8.64 billion, while a group of ten others accounted for about Br19 billion. The audit revealed that while approximately Br30 billion in commission was owed to the state, only Br3.6 billion had been paid. This shortfall also includes penalties and licensing fees.
Though the audit remains provisional and the complete findings have not yet been released, ELS Chief Executive Beza Girma stated that legal actions would be pursued to recover the outstanding liabilities once the audit is finalized. She also announced plans for a comprehensive digital system to track and regulate operators' financial and compliance responsibilities, affirming that any future relaunch would be bolstered by enhanced oversight and technology.
Following a thorough investigation into alleged regulatory violations, ELS suspended 22 operators on December 4, 2025, eventually revoking all sports betting licenses on December 15, 2025, which halted both online and physical betting operations.
The enforcement actions extended into 2026, with reports in August indicating that the government targeted 38 betting companies accused of hiding revenue, evading taxes, and misconduct involving client information. Some owners were detained, and their bank accounts were frozen. However, the specifics of these businesses and the results of the enforcement actions were not disclosed.
Earlier, concerns had been raised by Culture and Sports State Minister Mekiyu Mohammed regarding the large-scale illegality associated with sports betting. At a parliamentary discussion on proposed legislation, he indicated that the government was closely examining these issues.
In addition to the enforcement processes, operator Hulu Sport has legally challenged the regulator's actions. The company contended in a Federal High Court petition that being labeled as a suspect in a criminal investigation does not imply guilt. The court ruled in favor of Hulu Sport, stating that they hadn’t been allowed to respond to the allegations. Reports indicated that the ELS had appealed this decision and secured a 15-day pause pending a review by the Court of Cassation, focusing on procedural concerns rather than the substantive financial accusations.
Amidst these developments, discussions arose in Parliament regarding the proper governance of the betting framework in Ethiopia. ELS Chief Executive Beza Girma opposed a proposal that would give the Ministry of Culture and Sports leverage in establishing betting operations, arguing that this role should remain with the Ministry of Revenues, which had already delegated functions to ELS.
Culture and Sports Minister Shewit Shanka clarified that the discussed framework was intended to involve relevant parties without infringing upon the responsibilities of other ministries. She acknowledged past mismanagement of betting practices and raised the idea that a share of betting revenues could benefit sports development.
On July 3, the Federal Sport Development and Management Proclamation No. 1413/2026 was published, but it excluded the contentious betting provision, which would have granted oversight to the Ministry of Culture and Sports. Instead, Article 56 mandated the establishment of a Federal Sports Development Fund without specifying betting revenues as a funding source, allowing control over income and distribution to be set by the Council of Ministers.
As of now, the ELS has not released detailed licensing requirements or a timeline for re-opening the betting markets, indicating that the plans for relaunching remain far from realization, leaving operators unable to return to the scene.
