Ethiopia Shuts Down Sports Betting Industry Amid National Security Concerns

On December 15, 2025, the Ethiopian government enacted a comprehensive shutdown of its licensed sports betting industry through the Ethiopian Lottery Service (ELS). All sports betting licences across the country were revoked following an extensive investigation into the sector. This directive, dated Tahsass 06, 2018, in the Ethiopian calendar, was issued at the instruction of the federal government and under the regulatory powers of the ELS.

The ELS’s decision affects all betting operators, regardless of their current status—active or suspended—and encompasses various betting platforms, including online services, physical outlets, and all other betting channels. Effective immediately, betting companies have been instructed to cease all wagering activities. This includes disabling all payment gateways used for funding betting accounts, with an emphasis on halting new bets instantly.

The decision was prompted by a “comprehensive nationwide investigation” that linked the licensed betting sector to significant breaches of licensing conditions, illegal financial activities, threats to national security, and potential money laundering. As such, the ELS emphasized that despite the cancellation of licences, operators still bear responsibility for existing obligations, such as unsettled wagers and customer balances.

Additionally, the directive mandates that licence holders preserve all pertinent data, including server information, financial records, and user data. The ELS warned that any attempt to destroy, conceal, or alter records would be treated as a criminal act under Ethiopian law.

In an extended measure, financial institutions have been enveloped in the enforcement actions. Banks and payment systems are required to block or suspend transactions associated with betting organisations whose licences have been rescinded. The ELS plans to closely monitor compliance, working alongside other government agencies, and warned of legal repercussions for any institution ignoring this order.

This sweeping revocation represents a significant escalation in Ethiopia’s stance toward its betting industry. Previously, 22 operators had been suspended, and criminal investigations were underway concerning alleged revenue concealment, including a case involving 24 arrests linked to efforts to hide approximately Br100bn in gambling income. These earlier efforts were positioned as attempts to “strengthen industry integrity.” The current action, however, goes considerably further, wiping out all existing licences while investigations continue into financial flows and their connection to organised crime.

The ELS has yet to propose a roadmap for future licensing or a re-establishment of a regulated market. The focus remains on mitigating immediate risks by stopping betting, freezing related payments, and securing data to support legal cases as necessary. This decision leaves Ethiopia, a prominent emerging betting market in East Africa, facing significant uncertainty. Legal operators must address the abrupt cessation of trading, while thousands of retail agents and online affiliates lose access to their core business overnight. Without a regulatory alternative, consumers may turn to informal or offshore betting options.

However, Ethiopian officials contend that this decisive action is crucial for safeguarding public interest and the national financial ecosystem. By associating betting with national security threats and unlawful financial transfers, the government emphasizes that gambling enforcement integrates into broader efforts to regulate monetary flows across borders.

In conclusion, the ELS underscored its commitment to vigilantly monitor the enforcement of this directive and reiterated that any individuals or entities continuing to engage in or facilitate betting in violation of the ban would face legal consequences. This development marks a significant turning point for the betting industry in Ethiopia, spotlighting the government’s priority to maintain control over financial activities linked to gambling.

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