Ethiopia suspends 22 sports-betting licences in probe over Br100bn concealed revenue

The Ethiopian Lottery Service has suspended the operating licences of 22 sports-betting companies amid a multi-agency investigation into alleged concealment of more than Br100bn (€1.59bn) in revenue, in a move authorities say is intended to protect public funds and strengthen the integrity of the country’s betting market.

The Ethiopian Lottery Service (ELS) has suspended the licences of 22 sports-betting operators following an investigation that uncovered suspected large-scale revenue concealment and tax evasion in the sector. According to an official statement, the decision took effect on 25 November under Proclamation No. 535/1999 and the Sports Betting Lottery Licensing Directive No. 172/2013, and will remain in force while criminal proceedings continue.

Authorities allege that the targeted companies and their associates hid more than Br100bn that should have been collected as government revenue, using complex payment chains, foreign-hosted systems and crypto-based transfers to divert funds offshore. The operation is one of the most extensive financial-crime crackdowns in Ethiopia’s betting industry to date, involving the National Intelligence and Security Service, the Financial Security Service, the Ethiopian Federal Police and the security forces of Addis Ababa and Dire Dawa.

At least 24 owners, executives and associates of betting firms have been arrested on suspicion of under-reporting income, operating without valid licences or continuing to trade after licence revocation. Investigators say some operators abandoned registered offices and relied on foreign-developed software and local fintech intermediaries to obscure transaction volumes and avoid tax.

The ELS said the enforcement action aims to safeguard government revenue, rebuild public trust and “clear the way for legitimate, tax-compliant operators” in a market that has grown rapidly on the back of mobile and online betting. By removing non-compliant companies, regulators hope to create a more transparent and predictable environment for both consumers and investors, while signalling that unlicensed or under-reporting operators will face criminal liability.

Taken together with the arrests and ongoing audits, the suspension of 22 licences marks a turning point for Ethiopia’s betting sector: future growth is expected to depend increasingly on digital oversight, tighter reporting rules and closer coordination between gambling regulators, financial watchdogs and law-enforcement agencies.