Ethiopia is gearing up to relaunch its sports betting and digital lottery markets with stricter regulations following a draft audit that highlighted a 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. Authorities are currently enforcing actions against operators amid ongoing legal disputes.
In July, the Ethiopian Lottery Service (ELS) confirmed that no operators held valid licenses and has not yet announced plans for a new licensing process or when the market will reopen.
According to a report by Fana Media Corporation, operators in the sports betting and lottery sectors engaged in Br199 billion worth of transactions during the audit period. The review indicated that one operator was responsible for a shortfall of Br8.64 billion, while ten others collectively accounted for about Br19 billion.
It was reported that approximately Br30 billion was due to the state in commissions, but only Br3.6 billion had been collected. This shortfall also encompasses penalties, renewal fees, and registration charges. The audit remains provisional, as the full report has not yet been released, and discrepancies exist in the figures reported for various categories.
Beza Girma, the chief executive of ELS, stated that the agency would take legal action to recover the identified liabilities once the audit is finalized. She noted that efforts are underway to develop a unified digital system to ensure operators comply with financial and legal obligations. The ELS indicated any future market activities would benefit from enhanced oversight and advanced technology.
The shutdown of betting activities followed an investigation initiated on December 4, 2025, leading to the suspension of 22 operators due to suspected regulatory and financial breaches. On December 15, the government not only revoked all sports betting licenses but also mandated a cessation of both online and physical betting operations.
The enforcement actions extended into 2026, with reports indicating that the Government Communication Service had taken steps against 38 betting businesses accused of various infractions, including concealing customer data and conducting illicit financial activities. The government stated that the owners of these businesses had been detained and their bank accounts frozen, although no specific names or outcomes have been disclosed thus far.
Concerns previously expressed by Culture and Sports State Minister Mekiyu Mohammed suggested an extensive level of illegality within the sports betting sector, highlighted during a parliamentary discussion in March on a draft sports proclamation.
Amidst these developments, Hulu Sport, one of the operators, has contested the enforcement actions legally. The company filed a petition in the Federal High Court asserting that being a suspect in a criminal investigation does not equate to guilt. The court found that Hulu Sport had not been given a chance to respond to the allegations, subsequently setting aside the regulator's decision. In July, it was reported that the ELS appealed the decision, obtaining a 15-day stay while the Court of Cassation reviewed the case.
Additionally, a dispute arose regarding which institution should define Ethiopia's sports betting regulatory framework. During a March hearing, Beza Girma objected to provisions that would allow the Ministry of Culture and Sports to influence the betting framework, asserting that it was outside the ministry's purview. The Culture and Sports Minister, Shewit Shanka, clarified that the draft aimed to create an operational framework involving relevant entities rather than encroaching on other authorities.
The parliament recently passed the Federal Sport Development and Management Proclamation No. 1413/2026, which was gazetted on July 3. The final legislation did not include the contentious betting provision. While Article 56 established a Federal Sports Development Fund, it did not designate betting revenue as a funding source, delegating the arrangements for income collection to regulations set by the Council of Ministers.
By excluding this provision, the legislation averted giving dual oversight to the Ministry of Culture and Sports alongside ELS, as Beza Girma had cautioned against. However, the ELS has not disclosed the new licensing requirements or application process, suggesting that the government's plans for a market relaunch remain far from realization, leaving operators still outside the market.
