Ethiopia Betting Ban: All Licences Revoked, Scammers Exploit Void

Kyle Kevin

iGaming Writer

Fact Checked

Ethiopia’s sports betting ban remains absolute seven months after regulators revoked every licence. Scammers are now exploiting the regulatory vacuum to target consumers who cannot distinguish legal from illegal operators.

Ethiopia’s sports betting market has been dead for seven months. The Ethiopian Lottery Service confirmed last week that no operator holds a legal licence. The warning appeared on ELS’s official Telegram channel. It cautioned citizens against depositing money with illegal betting services, websites, and social media pages. The regulator directed the public to report unlicensed operators through short code 9695. The notice follows a pattern seen in other jurisdictions where abrupt bans create confusion that scammers exploit. Consumers cannot easily verify whether a betting site is genuinely licensed or merely claiming to be. In Ethiopia’s case, the regulatory vacuum is total. All 22 sports betting licences were revoked in December 2025. No replacement framework exists. The ELS statement made clear that recent court activity has not changed this. A Federal High Court ruling overturned the suspension of one operator, Hulu Sport, on procedural grounds. However, the regulator appealed and obtained a stay. Hulu Sport remains shut. The Ethiopia betting ban is, for now, absolute. According to AGBrief, the case illustrates how rapidly emerging markets can swing from open licensing to total prohibition when security concerns override commercial interests.

How the Ethiopia Betting Ban Took Hold

The crackdown began in November 2025. Ethiopia’s National Intelligence and Security Service arrested 24 individuals described as owners and accomplices of sports betting companies. The agency alleged these individuals concealed more than ETB100 billion in government revenue. That figure, equivalent to roughly $620.5 million, would represent a massive sum for any jurisdiction. In Ethiopia, a lower-income economy with a GDP of approximately $160 billion, the scale is staggering. NISS claimed the funds moved abroad through cryptocurrency exchanges and hawala-style transfer networks. Domestic payment aggregators were accused of hiding transaction volumes behind client confidentiality rules. The arrests triggered immediate regulatory action. On December 4, 2025, ELS suspended the licences of 22 sports betting firms. It cited “information received from NISS” as the basis. Eleven days later, ELS revoked all remaining sports betting licences. The December 15 directive did not mention the arrests, the 24 suspects, or the ETB100 billion figure directly. Instead, it referenced a nationwide sector review and concerns over illegal financial transfers threatening national security. That omission created ambiguity. Industry observers questioned whether the licence revocations were a direct response to the NISS investigation or a broader policy shift. No official statement has clarified the link. The regulatory process itself drew criticism. ELS CEO Beza Girma told a February 2026 parliamentary hearing that splitting oversight between two ministries had made control, policy implementation, and accountability enforcement difficult. That admission suggests structural governance flaws contributed to the sector’s collapse.

The ETB100 Billion Allegation and Its Aftermath

The NISS allegation of ETB100 billion in concealed revenue has drawn scepticism. That amount equals roughly 0.4% of Ethiopia’s annual GDP. For a sports betting sector that operated for only a few years, the figure seems extraordinarily high. Industry sources estimated daily transaction volume at ETB800 million to ETB1 billion before the shutdown. Even at the high end, annual gross handle would fall well short of ETB100 billion. The discrepancy may reflect NISS counting total fund movements rather than net revenue. Cryptocurrency and hawala transfers could inflate the apparent scale. Alternatively, the figure may include non-betting financial flows that investigators attributed to betting operators. The 24 arrestees were released from custody by late January 2026. Addis Insight reported their release. Authorities have not explained whether charges were dropped, transferred to civilian courts, or remain pending. That silence fuels speculation. If the ETB100 billion allegation were substantiated, prosecutors would likely pursue the case aggressively. The release of all suspects without public explanation suggests evidentiary or procedural weaknesses. The betting sector itself has not simply vanished. Daily transactions of ETB800 million to ETB1 billion do not evaporate overnight. Much of that activity has likely moved to unlicensed operators operating from outside Ethiopia’s jurisdiction. Those operators face no Ethiopian regulatory oversight. They also pay no local taxes. The ban, in effect, transferred a regulated market to an unregulated one. That is a familiar pattern in emerging markets where enforcement capacity lags behind prohibition ambition.

Court Challenges and Regulatory Confusion

The Federal High Court’s Hulu Sport ruling introduced new complexity. The court found procedural flaws in the National Lottery Administration’s suspension. That decision raised questions about ELS’s enforcement process. However, the ruling did not restore Hulu Sport’s licence. It did not reopen the market. ELS appealed and secured a temporary stay of execution. Hulu Sport remains inactive. The episode illustrates a tension common in emerging regulatory markets. Regulators act swiftly in response to political pressure. Courts then scrutinise whether that action followed proper procedure. The gap between political urgency and legal process creates uncertainty for operators. ELS’s July 2026 notice appears designed to close that gap in public perception. The regulator wants consumers to understand that court proceedings have not changed the legal status of betting. No operator currently holds a licence. The warning about scammers is equally significant. Unlicensed operators have continued targeting Ethiopian consumers through social media and mobile channels. Some may falsely claim pending licence restoration or court-ordered reinstatement. ELS’s statement attempts to cut through that misinformation. The regulator directed the public to report illegal operators through short code 9695. It also pledged continued cooperation with other government institutions to protect “the public interest, financial integrity and the rule of law.” That language signals ELS views the ban as indefinite, not temporary.

Is a Regulated Return Possible?

Despite the hardline posture, some officials have hinted at a future framework. Mekiyu Mohammed, state minister of culture and sports, told a February 2026 parliamentary hearing that permanently blocking betting was “impossible” given global conditions. He argued Ethiopia should establish a legal framework and determine how the country could benefit from the industry. That position differs from ELS’s current stance. The regulator appears focused on maintaining the ban. The ministry sees long-term regulation as inevitable. This divergence reflects broader government uncertainty. The NISS investigation framed betting as a national security threat. The culture ministry frames it as an economic opportunity requiring proper governance. Reconciling those views will determine whether a regulated market returns. For now, there is no licensing process, no consultation, and no timeline. International operators eyeing Ethiopia’s 130 million consumers have no legal path to entry. The market remains closed. However, the minister’s comments and the court’s procedural ruling both suggest the ban rests on shaky foundations. A future government could reverse it with relative speed. In contrast, rebuilding operator confidence would take longer. Companies that lost licences, staff, and capital in the 2025 crackdown will demand regulatory certainty before re-entering. Ethiopia’s experience offers a cautionary tale for other African markets considering betting regulation. Swift liberalisation followed by abrupt prohibition damages investor trust. It also fails to eliminate demand. The activity simply moves underground. ELS’s latest warning confirms the ban is holding. It does not confirm the ban is working.

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