Ethiopia Shuts Down Entire Betting Industry, Revokes All Licenses

Two weeks after revoking the licenses of 22 sports betting companies, Ethiopia’s Lottery Service has effectively brought the country’s entire betting industry to a halt. In a statement issued Monday morning, the agency directed all banks, payment operators, and financial intermediaries to immediately stop facilitating transactions for betting companies. No new bets are permitted, the statement said.

The move follows a nationwide investigation that alleged widespread illegality, large-scale money laundering, and what authorities described as a threat to national security. In a dramatic enforcement action, CEOs of several payment operators and betting firms were detained, while computers and other equipment were seized. Though no official or audited figures have been publicly released by regulators, two sources directly involved in the betting industry, and familiar with the matter, told Shega that the sector processes an estimated 800 million to 1 billion Birr in transactions each day.

The crackdown builds on investigative audits that revealed irregularities and alleged underreporting of 100 billion Birr. Those investigations, conducted alongside the National Intelligence and Security Service, financial security authorities, the Federal Police, and municipal administrations in Addis Ababa and Dire Dawa, have escalated scrutiny of a sector that has grown rapidly in recent years.

At the time, the Lottery Service indicated that the revocations would remain in effect pending the completion of criminal investigations into the companies’ owners and associates. Monday’s directive, which effectively cuts off all payment channels, signals a new level of intensity in the government’s oversight of the industry.

Ethiopia’s Lottery Service, formerly the National Lottery Administration, has issued betting licenses for nearly a decade. Federal audits portray a story of unchecked growth. In 2020, the agency, part of the companies under Ethiopia's sovereign wealth fund collected 160 million Birr from permits, fees, and revenue cuts, more than triple its 55 million-birr target. By 2024, collections reached 410 million Birr in just six months, surpassing the full-year goal by 4 million.

Yet the recent crackdown marks the most significant setback for the sector. Just three years ago, authorities seized all physical betting shops in major cities, prompting companies to migrate online. The latest measures suggest a heavy-handed approach that may freeze the industry entirely.

*The above story has been edited after initial publication.