Ethiopia reaffirms betting ban as scammers exploit regulatory vacuum

The Ethiopian Lottery Service (ELS) has issued a public notice confirming that the country’s sports betting ban remains in force, seven months after regulators revoked every operating licence in the sector.

The clarification, posted on ELS’s official Telegram channel last week, comes as bad actors exploit confusion around the shutdown to target Ethiopian consumers.

“At present, there is no sports betting organisation operating in Ethiopia with a legal licence,” the regulator stated. “We strongly caution citizens not to engage in betting or deposit money through illegally operating sports betting services, websites, social media pages, or any other money-collection channels.”

ELS said the warning followed information circulating on social media and other communication channels from some sports betting organisations.

The regulator warned that dealing with unlicensed operators could expose users’ money and personal information to serious risks. It added that consumers would struggle to recover losses because these companies “are not legally licensed”.

ELS directed the public to report illegal operators through the short code 9695. It also said it would continue working with government institutions to protect “the public interest, financial integrity and the rule of law”.

How Ethiopia’s betting market collapsed

The latest warning follows a crackdown that began in November 2025, when Ethiopia’s National Intelligence and Security Service (NISS) announced the arrest of 24 people described as owners and accomplices of sports betting companies.

NISS alleged that the individuals had concealed more than ETB100 billion ($620.5 million) in government revenue.

The agency claimed the funds moved abroad through cryptocurrency exchanges and hawala-style transfer networks. Domestic payment aggregators were also accused of hiding transaction volumes behind client confidentiality rules.

A sum of that scale would represent a major regulatory concern in any jurisdiction. In Ethiopia, one of the world’s lower-income economies, the alleged concealment of more than $620 billion in betting-related funds represents a significant financial issue for authorities.

ELS acted quickly following the investigation. On 4 December 2025, it suspended the licences of 22 sports betting firms, citing “information received from the National Intelligence and Security Service” and the arrests as the basis for the decision.

Eleven days later, ELS revoked all remaining sports betting licences.

However, the regulator’s directive did not directly reference the arrests, the 24 suspects or the ETB100 billion figure. Instead, it cited a nationwide review of the betting and financial sector and concerns over illegal financial transfers threatening national security.

No official statement from ELS or NISS has explicitly linked the nationwide licence revocation to that specific arrest case.

A further development has received limited attention: according to Addis Insight, all 24 individuals arrested in November had been released from custody by late January 2026. Authorities have not explained whether charges were dropped, transferred, or remain pending.

Court challenges and an uncertain future

Ethiopian business outlet Shega reported at the time of the 15 December revocations that industry sources estimated the sector had processed between ETB800 million and ETB1 billion in transactions daily before the shutdown.

That level of activity has not simply disappeared.

The latest ELS warning also comes amid ongoing legal challenges to the crackdown.

The Federal High Court recently overturned the National Lottery Administration’s suspension of Hulu Sport, reportedly finding procedural flaws in the regulator’s decision.

However, Hulu Sport cannot resume operations after the regulator appealed the ruling and obtained a temporary stay of execution.

The court decision raised questions over the regulator’s enforcement process, but it did not restore Hulu Sport’s licence or reopen the market.

ELS’ July notice appears intended, at least in part, to clarify that recent court proceedings have not changed the legal status of sports betting. No operator currently holds a licence to offer betting services in Ethiopia.

Officials signal possible regulatory rethink

Despite the current ban, government officials have not ruled out a future framework for the sector.

At a February 2026 parliamentary hearing on a draft sports proclamation, Mekiyu Mohammed, state minister of culture and sports, said permanently blocking betting or denying betting technology was “impossible” given current global conditions.

He argued that Ethiopia should instead establish a legal framework and determine how the country could benefit from the industry.

Beza Girma, ELS’ CEO, told the same hearing that splitting oversight of betting between two ministries had made it difficult to control the sector, implement policy and enforce accountability.

The comments suggest that while Ethiopia’s authorities remain focused on controlling betting activity, the debate has shifted from whether the industry should exist to how it should be governed.

No clear path back for operators

For international operators and investors eyeing Ethiopia’s roughly 130 million consumers, the immediate message from Addis Ababa remains unchanged.

There is currently no licensing process to apply for, no consultation under way and no timeline for a return to a regulated market.