The Ethiopian Lottery Service (ELS) has reaffirmed the ongoing ban on sports betting in Ethiopia, nearly seven months after revoking all operating licenses in the sector. This notice, shared on ELS's official Telegram channel last week, comes as scammers are taking advantage of the confusion surrounding the ban to prey on Ethiopian consumers.
The regulator emphasized, "At present, there is no sports betting organization operating in Ethiopia with a legal licence." ELS cautioned citizens against engaging with illegal betting services, including unlicensed websites and social media pages. The message also highlighted the risks associated with these unauthorized operators, particularly concerning the safety of users' finances and personal data. "Dealing with unlicensed operators could expose your money and personal information to serious risks," the regulator warned. Consumers may find it challenging to recover losses since these unlicensed entities have no legal recourse.
In its message, ELS urged the public to report illegal betting operations using short code 9695 and reassured efforts to collaborate with government institutions to safeguard public interest, financial integrity, and the rule of law.
This announcement follows a crackdown initiated in November 2025 when the National Intelligence and Security Service (NISS) arrested 24 individuals linked to sports betting companies. These individuals were accused of concealing more than ETB100 billion ($620.5 million) in government revenues. Allegations suggested that these funds were funneled abroad via cryptocurrency exchanges and hawala networks, while domestic payment processors were accused of masking transaction volumes under client confidentiality.
Such a large sum represents a significant regulatory issue, particularly in Ethiopia, which is classified as one of the world's low-income economies. The alleged concealment of over $620 billion in betting-related funds raised alarms for the authorities. Following this investigation, ELS acted swiftly. On December 4, 2025, it suspended licenses for 22 sports betting firms, citing information from NISS about the arrests. Eleven days later, all remaining licenses were revoked.
Notably, the directive did not explicitly mention the arrests or the staggering ETB100 billion figure but referred to a nationwide review of the betting sector and concerns over illicit financial transfers that could jeopardize national security. No official link has been confirmed between the license revocations and the arrests.
Additionally, it has been reported by Addis Insight that all 24 individuals arrested in November were released by late January 2026, yet authorities have not clarified the legal status of their cases.
As for the market's future, Ethiopian business outlet Shega reported that before the shutdown, the industry was processing transactions estimated between ETB800 million and ETB1 billion daily. However, this level of activity has not disappeared entirely.
Ongoing legal challenges complicate the situation. The Federal High Court recently overturned the suspension of Hulu Sport, finding procedural errors in the National Lottery Administration's decision. However, as the regulator has appealed the ruling, Hulu Sport remains barred from resuming operations.
The court's decision has cast doubts on the enforcement practices of the regulator without reinstating Hulu Sport's license or reopening the betting market. ELS's recent notice seeks to clarify that court proceedings do not alter the legal status of sports betting in Ethiopia, confirming that no operator holds valid authorization.
Nonetheless, government representatives have not dismissed the idea of establishing a future regulatory framework for the sector. During a February 2026 parliamentary session, Mekiyu Mohammed, state minister of culture and sports, pointed out the impracticality of permanently banning betting given the global landscape. He suggested Ethiopia should develop regulations to leverage potential benefits from the betting industry. ELS CEO Beza Girma noted that the division of oversight between two ministries has hampered effective control and accountability in the sector.
This exchange indicates that while authorities aim to manage betting activities, the discourse is shifting from a complete ban to exploring governance strategies for the industry.
For international investors eyeing Ethiopia's market of approximately 130 million consumers, the situation remains unchanged: there is currently no licensing framework, no consultations in progress, and no foreseeable timeline for the re-establishment of a regulated market.
