Ethiopia Revokes All Sports Betting Licenses Citing Illegal Operations

Ethiopian authorities have ordered a nationwide prohibition on all sports wagering activities, nullifying all operational licenses in the sector, effective December 15, 2025. The unprecedented measure targets digital platforms, land-based betting outlets, agents, and linked payment providers.

The Ethiopian Lottery Service disclosed the ban followed a 12-month federal probe revealing systemic violations of operational terms, illicit money transfers, and security breach practices. Officials emphasized that the crackdown, executed under presidential directives, aligns with constitutional powers to safeguard economic integrity.

This total sector freeze expands on the suspension of 22 firms accused of hiding over 100 billion birr (US$1.8 billion) in November. It now extends to previously unaffected operators.

Immediate Freeze and Compliance Expected

Ethiopian betting operators face immediate operational paralysis under the directive. The Lottery Service emphasized that license revocation does not absolve firms from honoring pending customer payouts, requiring settlements despite suspended operations.

Regulators imposed stringent data-custody protocols, compelling companies to retain server logs, financial records, and user databases. Tampering or deleting such materials now carries criminal penalties under revised statutes.

Financial institutions received similar directives to freeze transactions tied to revoked betting entities, with real-time monitoring systems activated to track compliance. Interagency task forces will prosecute banks that facilitate transfers, marking Ethiopia’s first integration of financial networks into anti-gambling enforcement.

Prior Enforcement

The earlier suspension of 22 betting operators was under Article 14/2/C of Proclamation No. 535/1999 and Directive No. 172/2013. At the time, the Lottery Service publicly tied the moves to alleged “hiding of more than 100 billion birr, which should have been government revenue.” The multi-agency operation involves federal police and intelligence units, and it has detained 24 individuals.

Authorities framed the earlier crackdown as a precursor to the sector-wide shutdown, noting suspended firms remain under criminal investigation for revenue concealment. The regulator’s November statement confirmed its collaboration with security bodies in Addis Ababa and Dire Dawa to apprehend suspects.

Legal Scrutiny and Economic Concerns

Legal experts challenge Ethiopia’s blanket revocation of betting licenses, with analyst Samuel Taye asserting that collective penalties violate due process norms. “The principle is individuation of punishment,” Taye emphasized, arguing regulators bypassed obligations to assess operators individually before sanction.

Economic observers warn that the sector-wide ban risks undermining Ethiopia’s investment climate and broader efforts to boost market growth. Local news reports note authorities’ silence on potential hearings for affected firms, leaving the ban outcomes unresolved.