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 proposed overhaul follows the cancellation of every sports betting licence in December 2025. Authorities are continuing enforcement action against operators, while a separate legal challenge is moving through the courts.
The Ethiopian Lottery Service (ELS) said in July that no operator held a valid licence. It has not yet announced a new licensing process or a date for reopening the market.
Draft Audit Identifies Major Unpaid Gambling Commissions And State Revenues
According to a report by Fana Media Corporation, operators in the sports betting and lottery sector processed Br199 billion in transactions during the period covered by the draft audit.
The review found that one operator accounted for Br8.64 billion, while 10 companies collectively represented Br19 billion. Around Br30 billion in commission was said to be payable to the state, but only Br3.6 billion had been paid. Reported shortfall also included penalties, licence-renewal fees and registration charges.
A complete audit has not been published, and the reported figures for some categories do not align precisely. ELS chief executive Beza Girma said the regulator would pursue legal action to recover liabilities identified after the audit is finalised. She also said a unified digital system was being developed to record and monitor operators’ financial and legal obligations.
Licence Revocations Expose Regulatory And Financial Compliance Failures
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.
This enforcement campaign continued in 2026. The Government Communication Service said in August that action had been taken against 38 betting enterprises accused of concealing customer data, evading tax, hiding revenue and conducting illicit financial transactions.
Authorities also stated that some owners had been detained and company bank accounts frozen. The official announcement did not identify the businesses or disclose the outcome of the cases.
Culture and Sports state minister Mekiyu Mohammed previously described the sector as having a “high level of illegality” during a parliamentary discussion on a draft sports proclamation.
Hulu Sport Challenges The Process Used To Shut Down Ethiopia’s Betting Market
Furthermore, the shutdown has faced a legal challenge from operator Hulu Sport, which argued in a Federal High Court petition: “Being merely a suspect under criminal investigation does not constitute guilt.”
The court set aside the regulator’s decision after finding that Hulu Sport had not been given an opportunity to respond to the allegations. Also, the regulator appealed and obtained a 15-day stay pending review by the Court of Cassation.
Dispute Over Regulatory Authority Delays A Clear Framework For Sports Betting
Relaunch plans followed a disagreement over which institution should control Ethiopia’s sports betting framework. ELS chief executive Girma objected to a draft provision that would have given the Ministry of Culture and Sports a role in establishing operating arrangements. She argued that this would allow the ministry to operate “outside its field of work”.
The ministry said the proposal envisaged “an operational framework involving the relevant bodies”, rather than taking over ELS responsibilities. Parliament later approved the Federal Sport Development and Management Proclamation No. 1413/2026.
Not long after, the disputed betting clause was removed from the final law, establishing a Federal Sports Development Fund without specifying betting revenue as a funding source. ELS is yet to publish licensing requirements, an application process or a timetable for reopening the market. Hence, operators are unable to return despite the latest developments.
Ethiopia’s proposed relaunch appears designed to rebuild the market around transparency, digital monitoring and stricter industry regulations. While the reported audit shortfall gives the government a strong justification for tighter measures, provisional figures and the Hulu Sport ruling show why due process will matter.
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