Ethiopia plans betting relaunch after Br27.5 billion audit finding
Ethiopia is preparing to relaunch sports betting and digital lotteries under tighter controls after a draft audit identified a reported Br27.5 billion shortfall in payments due to the state.
The overhaul follows the revocation of every sports betting licence in December 2025. It comes as authorities continue enforcement action against operators and a legal challenge moves through the courts.
The Ethiopian Lottery Service (ELS) said in July that no operator held a valid licence. It has not since announced a new licensing process or reopening date.
Draft audit identifies shortfall
A Fana Media Corporation report said operators in the sports betting and lottery sector processed Br199 billion in transactions during the period examined by the draft audit.
The review alleged that a single operator accounted for Br8.64 billion, while ten companies collectively accounted for approximately Br19 billion.
It reported that approximately Br30 billion in commission was payable to the state, but only Br3.6 billion was paid. The reported shortfall also included penalties, licence-renewal fees and registration charges.
The assessment remains provisional. The complete audit has not been published, while the figures reported for individual categories do not align precisely.
ELS chief executive Beza Girma said the regulator would pursue legal measures to recover liabilities identified when the audit is completed.
She also said work was under way on a unified digital system to record and monitor operators’ financial and legal obligations. ELS said any relaunch would be backed by stronger oversight and modern technology.
Shutdown followed by enforcement
ELS suspended 22 operators on 4 December 2025 during an investigation into alleged regulatory and financial breaches.
It revoked all sports betting licences on 15 December and ordered online and physical betting operations to stop.
The enforcement campaign continued in 2026. In August, the Government Communication Service said action had been taken against 38 betting enterprises.
The businesses were accused of concealing customer data, evading tax, hiding revenue and conducting illicit financial transactions.
The government said owners had been detained and company bank accounts frozen. The official announcement did not identify the businesses or disclose the outcome of the cases.
The allegations followed earlier concerns raised by Culture and Sports State Minister Mekiyu Mohammed. At a parliamentary discussion on the draft sports proclamation in March, he said the government was assessing and studying what he described as a “high level of illegality” associated with sports betting.
Hulu Sport challenges regulator
The enforcement process has also faced a legal challenge from operator Hulu Sport.
“Being merely a suspect under criminal investigation does not constitute guilt,” the company argued in a Federal High Court petition.
The court set aside the regulator’s decision after finding that Hulu Sport had not been given an opportunity to answer the allegations.
Addis Fortune reported in July that the regulator had appealed and obtained a 15-day stay pending review by the Court of Cassation.
The judgment concerned the procedure followed by the regulator rather than the wider financial allegations.
Ministry role challenged
The relaunch follows an earlier dispute over which institution should shape Ethiopia’s sports betting framework.
At the parliamentary hearing in March, Girma objected to a draft provision that would have given the Ministry of Culture and Sports a role in establishing operating arrangements for betting.
Girma argued that the proposal would allow the ministry to operate “outside its field of work”.
She said the Ministry of Revenues held the relevant licensing and supervisory powers and had delegated those functions to ELS pending detailed legislation.
Culture and Sports Minister Shewit Shanka said the draft envisaged “an operational framework involving the relevant bodies”, rather than an attempt to encroach on another institution’s authority.
She also acknowledged that betting had not previously been managed appropriately. Mekiyu suggested that a proportion of betting proceeds could support sports development.
Betting clause removed
Parliament subsequently enacted the Federal Sport Development and Management Proclamation No. 1413/2026, gazetted on 3 July.
The disputed betting provision was not included in the final legislation.
Article 56 established a Federal Sports Development Fund but did not specify betting revenue as a funding source. Instead, it left the fund’s income, collection and distribution arrangements to regulations to be issued by the Council of Ministers.
By omitting the provision, the final law avoided giving the Ministry of Culture and Sports a role in betting oversight alongside ELS, the dual arrangement Girma had warned against.
ELS has yet to set out the licensing requirements, application process or timetable for reopening the market. The government’s relaunch plans therefore remain some way from implementation, with operators still unable to return to the market.