Ethiopia is gearing up to relaunch sports betting and digital lotteries with enhanced regulations after a draft audit revealed a significant Br27.5 billion shortfall in state payments.
This move follows the December 2025 revocation of all sports betting licenses as authorities ramp up enforcement measures against operators under legal scrutiny.
The Ethiopian Lottery Service (ELS) announced in July that no betting operator currently holds a valid license, and it has yet to unveil a new licensing process or a timeline for reopening.
According to a report from Fana Media Corporation, operators in the sports betting and lottery sectors processed transactions totaling Br199 billion during the audit period. The review highlighted that one operator alone was responsible for Br8.64 billion, while a group of ten accounted for about Br19 billion.
The audit indicated that approximately Br30 billion in commissions were owed to the state, but only Br3.6 billion was remitted. This shortfall also encompassed penalties, license renewal fees, and registration charges. As the report remains provisional, the complete audit has not been released, and the figures provided do not match perfectly across categories.
ELS chief executive Beza Girma remarked that the regulator is prepared to undertake legal actions to retrieve the owed amounts once the audit is finalized. Girma added that efforts are underway to develop a comprehensive digital system to track and manage operators' financial and legal responsibilities, ensuring any future relaunch is supported by improved oversight and technology.
The crackdown on operators intensified in December 2025 when ELS suspended 22 betting companies during an investigation into potential regulatory and financial violations. By December 15, all sports betting licenses were rescinded, leading to a halt of both online and physical betting operations.
The enforcement actions continued into 2026, with the Government Communication Service announcing in August that 38 betting enterprises had been targeted for scrutiny. Allegations against these businesses included concealing customer data, tax evasion, hiding revenues, and engaging in illicit financial transactions. The authorities reported that owners had been arrested and bank accounts frozen, although they did not disclose the identities of the businesses involved or the outcomes of the investigations.
These allegations came after Culture and Sports State Minister Mekiyu Mohammed raised concerns in March about a “high level of illegality” seen in the sports betting sector during a parliamentary discussion regarding a new sports proclamation.
The enforcement actions have also led to legal challenges, notably from the operator Hulu Sport, which argued in a petition to the Federal High Court that mere criminal investigation does not imply guilt. The court sided with Hulu Sport after determining the company had not been given a fair chance to address the allegations.
In July, it was reported that the regulator's appeal received a 15-day stay pending review by the Court of Cassation. Notably, the court's judgment focused on procedural aspects rather than the substantial financial allegations.
A previous dispute also arose regarding which institution should govern Ethiopia's sports betting framework. During the March parliamentary hearing, Girma opposed a provision that would have allowed the Ministry of Culture and Sports to dictate operational guidelines for betting. She asserted that such a move would extend the ministry's reach beyond its intended purview.
In response, Culture and Sports Minister Shewit Shanka contended that the draft aimed to create an operational framework involving all relevant bodies rather than infringe on the ELS's authority. Both ministers acknowledged past mismanagement of betting activities, with Mekiyu proposing that a portion of betting revenue could be allocated to sports development.
In the end, Parliament passed the Federal Sport Development and Management Proclamation No. 1413/2026, which was gazetted on July 3. The contentious betting provision was omitted from the final legislation, establishing a Federal Sports Development Fund without explicitly designating betting revenue as a funding source. This omission helped preserve ELS's exclusive regulatory role, aligning with Girma's warnings against dual oversight.
As of now, ELS has not disclosed the licensing requirements, application procedures, or a timeline for reopening the betting market, leaving operators without access to return to the field.
