jili tutorial

Ethiopia’s Sports Betting Relaunch: A Comprehensive Guide

By jili tutorial · October 9, 2026

Ethiopia’s Sports Betting Relaunch: A Comprehensive Guide

Introduction

Ethiopia is gearing up to relaunch its sports betting and digital lottery sector under stricter regulations following a draft audit that uncovered a staggering Br27.5 billion shortfall in payments owed to the state. This overhaul comes after the revocation of all sports betting licenses in December 2025 and ongoing enforcement actions against operators. The Ethiopian Lottery Service (ELS) is spearheading the reforms, emphasizing stronger oversight and modern technology. This guide delves into the context, audit findings, enforcement actions, legal challenges, and future plans for the sector.

The Audit Findings: A Deep Dive

Massive Financial Shortfall

A draft audit report by Fana Media Corporation revealed that sports betting and lottery operators processed Br199 billion in transactions during the audit period. However, only Br3.6 billion of the Br30 billion in commissions owed to the state was paid. The shortfall also included penalties, license renewal fees, and registration charges.

Operator Accountability

The audit highlighted significant discrepancies among operators. A single operator accounted for Br8.64 billion in unaccounted funds, while ten companies collectively contributed approximately Br19 billion. These findings underscore systemic issues in financial reporting and compliance.

Provisional Nature of the Audit

It is important to note that the audit remains provisional. The complete report has not yet been published, and some figures across categories do not align precisely. ELS CEO Beza Girma has stated that the regulator plans to pursue legal measures to recover identified liabilities once the audit is finalized.

The Shutdown and Enforcement Campaign

License Revocation and Suspension

On December 4, 2025, ELS suspended 22 operators during an investigation into alleged regulatory and financial violations. By December 15, all sports betting licenses were revoked, and both online and physical betting operations were ordered to cease.

Continued Enforcement in 2026

The enforcement campaign persisted into 2026, with the Government Communication Service reporting actions against 38 betting enterprises. These businesses were accused of concealing customer data, evading taxes, hiding revenue, and engaging in illicit financial transactions. Owners were detained, and company bank accounts were frozen, though specific outcomes remain undisclosed.

Earlier Concerns Raised

Culture and Sports State Minister Mekiyu Mohammed had previously expressed concerns about the “high level of illegality” associated with sports betting during a parliamentary discussion in March 2025. These concerns laid the groundwork for the subsequent crackdown.

Hulu Sport’s Court Battle

Operator Hulu Sport challenged ELS’s enforcement actions in the Federal High Court, arguing that being under investigation does not constitute guilt. The court sided with Hulu Sport, finding that the regulator had not provided the company an opportunity to respond to the allegations. ELS appealed, and the Court of Cassation granted a 15-day stay pending review.

Dispute Over Regulatory Authority

A parliamentary dispute emerged over which institution should oversee Ethiopia’s sports betting framework. ELS CEO Beza Girma objected to a draft provision that would grant the Ministry of Culture and Sports a role in establishing operating arrangements, arguing that it would operate “outside its field of work.” The Ministry of Revenues holds the relevant licensing and supervisory powers, which it delegated to ELS.

Outcome of the Dispute

The Federal Sport Development and Management Proclamation No. 1413/2026, gazetted on July 3, 2026, omitted the disputed betting provision. While it established a Federal Sports Development Fund, it did not specify betting revenue as a funding source, avoiding dual oversight by ELS and the Ministry of Culture and Sports.

Plans for Relaunch and Future Oversight

Unified Digital System

ELS is developing a unified digital system to record and monitor operators’ financial and legal obligations. This system aims to enhance transparency and compliance in the sector.

Licensing and Application Process

As of now, ELS has not announced new licensing requirements, application processes, or a timetable for reopening the market. The government’s relaunch plans remain in development, leaving operators unable to return to the market.

Conclusion

Ethiopia’s sports betting sector is undergoing a significant transformation following a draft audit that exposed massive financial shortfalls. While enforcement actions and legal challenges continue, the government is working on a stricter regulatory framework backed by modern technology. However, details of the relaunch remain unclear, and operators await further guidance from ELS.