Ethiopia is set to relaunch its sports betting and digital lottery sectors under stricter regulations, following a draft audit that revealed a significant Br27.5 billion shortfall in payments owed to the state.
This initiative comes after the Ethiopian government revoked all sports betting licenses in December 2025 amid ongoing enforcement actions against operators, alongside a legal challenge that is currently under consideration by the courts.
The Ethiopian Lottery Service (ELS) announced in July that no betting operators currently possess valid licenses, and there has yet to be any announcement regarding a new licensing process or a specific date for reopening.
According to a report by Fana Media Corporation, operators in the sports betting and lottery sectors processed approximately Br199 billion in transactions during the audit period. The report indicated that one operator alone accounted for Br8.64 billion, while a group of ten companies totaled roughly Br19 billion. However, it also noted that while about Br30 billion was due to be paid to the state, only Br3.6 billion was actually remitted. The shortfall includes various fees such as penalties, license renewals, and registration charges.
As this draft audit remains provisional without full publication, the figures for individual categories do not match precisely. ELS Chief Executive Beza Girma stated that the regulator would initiate legal actions to recover the identified liabilities once the audit is finalized. Additionally, she mentioned that there is ongoing work to develop a unified digital system aimed at recording and monitoring the financial and legal responsibilities of operators. ELS assured that any future relaunch would be supported by enhanced oversight and advanced technology.
The decision to shut down operations commenced with the suspension of 22 operators on December 4, 2025, due to alleged breaches of regulatory and financial conduct. All sports betting licenses were formally revoked on December 15, leading to a halt on all online and physical betting activities. This enforcement action continued into 2026, with the Government Communication Service announcing in August that steps had been taken against 38 betting enterprises, citing accusations including the concealment of customer data, tax evasion, underreporting of revenue, and unlawful financial transactions.
The government reported the detention of business owners and the freezing of company bank accounts but did not disclose the identities of the businesses involved or the outcomes of the cases. Concerns regarding illegality in sports betting were previously expressed by Culture and Sports State Minister Mekiyu Mohammed during a parliamentary discussion in March, highlighting the government's scrutiny of the situation.
Operator Hulu Sport has contested the enforcement actions through legal channels, arguing in a petition to the Federal High Court that being labeled a suspect does not imply guilt. The court ruled in favor of Hulu Sport, stating that the company was not given a chance to respond to the allegations before the regulator's judgment. Despite this, Addis Fortune reported in July that the ELS appealed the decision and secured a temporary suspension during judicial review by the Court of Cassation, focusing on the regulatory procedures rather than the financial matters at hand.
The upcoming relaunch also follows earlier discussions about which body should oversee Ethiopia's sports betting framework. During a parliamentary hearing in March, Beza Girma expressed objections to a proposed provision that would have allowed the Ministry of Culture and Sports to influence the operations of betting services. She emphasized that the Ministry of Revenues maintained the essential licensing and supervisory powers that had been delegated to ELS until more comprehensive legislation is established.
Culture and Sports Minister Shewit Shanka clarified that the draft aimed to create an operational framework involving all relevant parties instead of infringing upon another institution's jurisdiction. She acknowledged past mismanagement in the betting sector and suggested that a portion of betting proceeds might be used to support sports development initiatives.
Ultimately, the parliament enacted the Federal Sport Development and Management Proclamation No. 1413/2026, published on July 3. The contentious betting provision was omitted from the final legislation, leading to the establishment of a Federal Sports Development Fund without specifying betting revenue as a source. Instead, the fund's income, collection, and distribution will be governed by regulations set by the Council of Ministers.
With the removal of the provision, the finalized law avoids granting overlapping authority between the Ministry of Culture and Sports and ELS regarding betting oversight, which Beza Girma had warned against. At present, ELS has yet to delineate the licensing criteria, application processes, or timelines for reopening the market, resulting in ongoing uncertainty for operators who remain barred from returning to the industry.
