The Ethiopian government has shut down the entire betting industry after it found repeated violations of licensing requirements, unlawful financial transactions, and conduct deemed to pose risks to national security. The news was confirmed on Monday 15 December by the Ethiopian Lottery Service (ELS), the regulator responsible for overseeing all legal gambling activities in the country.
An investigation revealed gambling revenue exceeding Br100bn ($1.87bn) had failed to be reported by sports betting companies. All 22 licenses have been suspended with immediate effect and will not be lifted until criminal proceedings have reached its conclusion. It has also led to the arrest of 24 individuals, some of whom include executives and industry bosses.
In a statement, the regulator said: “It is known that the owners and accomplices of sports betting organisations suspected of hiding more than 100bn birr which should have been government revenue, have been apprehended through the collaboration of the National Intelligence and Security Service, the Financial Security Service, the Ethiopian Federal Police, security bodies of the Addis Ababa and Dire Dawa city administrations and the public.”
Harsh repercussions for those that do not meet reporting and compliance obligations is meant to strengthen the gambling landscape in Ethiopia, regulators argue. It is not known for how long the suspensions will be in effect, though it could be many months, with the betting license suspension designed to freeze financial flows and secure evidence as investigations continue.
No public response has yet been issued by the suspended operators, and it remains unclear whether companies or executives will challenge the suspensions through the courts.
Most aggressive betting clampdown on the continent to date
The Ethiopian gambling landscape has changed forever as a result of what is a seismic decision by authorities, one without a yardstick. In 2019, Kenya suspended the licenses of 27 operators after failure to adhere to compliance laws, though there were some companies that remained open.
In 2024, Ugandan president Yoweri Kaguta Museveni issued a ban on all new betting licenses and ordered old licenses to not be renewed upon expiration, citing the negative influence on young people. However, the sector has since reopened and now operates under the oversight of the new National Lotteries and Gaming Regulatory Board (NLGRB).
However, a complete breakdown in trust between the betting industry and its government regulator at this level has not been seen before. Ethiopia’s move from targeted suspensions to a nationwide shutdown suggests regulators no longer believe compliance failures are isolated or fixable. Modern gambling regulation relies heavily on operator disclosures, such as revenue reporting, AML filings, transaction monitoring. When authorities no longer trust those inputs, the entire regulatory model collapses.
In its closing remarks, the Ethiopian Lottery Service said it would closely monitor enforcement of the decision and warned that any organisation or individual continuing to operate or facilitate betting in violation of the ban would face legal consequences.
What next for Ethiopian betting industry
Industry observers believe work is already underway to establish a new regulatory framework in the African country, however there is no timeframe in place. It will likely mean an exodus of a quickly expanding betting cohort into offshore markets with fewer consumer protections.
Could Ethiopia relaunch with fewer operators, higher taxes, or state control? There are plenty of options on the table for the government to pursue with some precedent to call on, too.
In Ukraine, for example, gambling was made illegal in 2009 as a result of a fire in a Dnipro gambling hall, which killed nine people. In 2020, On State Regulation of Organising and Conducting Gambling was signed back into law by president Volodymyr Zelenskyy, to overturn an 11-year hiatus. It has since collapsed and been replaced by a new gambling regulator called the State Agency of Ukraine PlayCity.
In Cambodia, the country has banned online gambling, including internet casinos, since 1996. However, that changed in November 2020. The introduction of the Commercial Gaming Management Law established a nationwide licensing regime, defined permitted and prohibited gaming zones, introduced new tax rates of 4% to 7%, restricted participation by minors and vulnerable individuals, and created the Cambodian Commercial Gaming Commission to oversee licensing.
The Ukraine case shows that complete bans can be reversed if regulators build a robust statutory and compliance regime. The Cambodian case highlights how markets can be reshaped, not erased, with activity permitted under constraints rather than an outright ban.
All eyes will be on the Ethiopian government to see which avenue they pursue. However, the gambling sector looks set for a spell out of the public domain for a long time.
References
- Tribuna: https://tribuna.com/amp/en/casino/news/2025-12-15-ethiopian-regulator-cancels-22-betting-licences-over-15bn-revenue-concealment-allegations/
- The African Exponnent: https://www.africanexponent.com/kenya-halts-all-betting-license-applications-until-february-2026-during-regulatory-handover/
- Pan African Visions: https://panafricanvisions.com/2019/07/kenyasportpesa-leads-betting-companies-suspended-by-government/
- Next.IO: https://next.io/news/regulation/ukraine-introduces-new-gambling-regulator-following-krail-collapse/
