Ethiopia is set to relaunch sports betting and digital lotteries with enhanced regulations after a draft audit revealed a substantial Br27.5 billion shortfall in payments owed to the state.
The initiative follows the revocation of all sports betting licenses in December 2025, as authorities ramp up enforcement against non-compliant operators amid ongoing legal battles.
According to the Ethiopian Lottery Service (ELS), no operators currently hold a valid license. ELS has not yet announced a new licensing process or a reopening timeline.
The draft audit, reported by Fana Media Corporation, indicated that operators within the sports betting and lottery sector processed transactions amounting to Br199 billion during the assessment period. The audit cited that one operator alone accounted for Br8.64 billion, while ten other firms collectively reported around Br19 billion in revenue.
The audit noted that approximately Br30 billion was due to the state in commissions, yet only Br3.6 billion was actually received. The shortfall also encompassed penalties, costs associated with license renewals, and registration fees. It's important to highlight that this audit remains provisional, as the full report has not yet been released, and the figures for the individual categories do not completely align.
Beza Girma, CEO of ELS, stated that the regulator intends to pursue legal action to recover the identified liabilities once the audit concludes. She added that efforts are underway to develop a unified digital system that will track and monitor financial and legal responsibilities of operators. Any future relaunch will be reinforced by stronger oversight and modern technology solutions.
The previous shutdown of operations began on December 4, 2025, when ELS suspended 22 operators amid an investigation into alleged regulatory violations and financial misconduct. Subsequently, on December 15, 2025, ELS revoked all sports betting licenses, instructing both online and in-person betting operations to cease.
The government's crackdown on this sector continued into 2026. In August, the Government Communication Service reported that actions were taken against 38 betting entities for various offenses, including concealing customer data, tax evasion, and conducting illicit financial transactions. Although authorities detained some owners and froze corporate bank accounts, details about the specific companies or the outcomes of these cases were not disclosed.
Concerns voiced by Culture and Sports State Minister Mekiyu Mohammed during a parliamentary discussion on the draft sports law in March focused on the perceived high levels of illegality linked to sports betting in the country.
The enforcement measures have met with legal challenges, notably from Hulu Sport, which contested its treatment in a Federal High Court. The operator argued that being a suspect does not imply guilt. The court ruled that Hulu Sport was not allowed a chance to respond to the complaints raised against it, thus invalidating the regulator’s decision. Reports in July noted that ELS appealed the ruling and secured a 15-day stay pending a review by the Court of Cassation. This ruling focused more on procedural issues than the underlying financial allegations.
There has also been contention regarding which governmental body should oversee Ethiopia's sports betting regulations. During the March parliamentary hearing, Girma contested a draft provision that would expand the role of the Ministry of Culture and Sports in managing betting operations. She argued that such an arrangement would allow the ministry to operate outside its jurisdiction. Instead, she asserted that the Ministry of Revenues should retain its licensing and supervision authority, delegated to ELS until the necessary legislation is finalized.
In response, Culture and Sports Minister Shewit Shanka indicated that the draft sought an operational framework that would include multiple relevant authorities without infringing on another institution’s jurisdiction. She also recognized past mismanagement of the betting sector, while Mekiyu hinted that a portion of betting revenues could contribute to sports development.
Ultimately, Parliament passed the Federal Sport Development and Management Proclamation No. 1413/2026 on July 3, which did not include the contested betting provision. The finalized legislation created a Federal Sports Development Fund, but it did not designate betting revenue as a source of income, leaving the fund’s financial arrangements subject to future regulations by the Council of Ministers.
The absence of the disputed provision in the final bill prevents the Ministry of Culture and Sports from sharing oversight responsibilities with ELS, which Girma had cautioned against. As it stands, ELS has not released detailed licensing requirements, application processes, or a schedule for reopening the market, leaving relaunch plans unfulfilled and operators still barred from re-entering the sector.
