Ethiopia is preparing to reopen its sports betting and digital lottery markets under stricter regulatory oversight after a draft audit identified a reported Br27.5 billion shortfall in payments owed to the state. The proposed reforms follow the revocation of all sports betting licences in December 2025 and an ongoing government crackdown on alleged financial and regulatory violations.

The Ethiopian Lottery Service (ELS) has indicated that any return to the market will involve stronger supervision and new digital monitoring technology. However, authorities have not yet announced a relaunch date or published a new licensing procedure.

Draft Audit Reports Br27.5 Billion in Outstanding Payments

According to reporting by Fana Media Corporation, the draft audit examined betting-sector activity between the initial licensing of operators in July 2023 and the shutdown in December 2025. During that period, operators reportedly processed approximately Br199 billion in transactions.

The audit estimated that around Br30 billion in commissions was payable to the state, while only Br3.6 billion had been paid. The wider reported shortfall of Br27.5 billion also includes penalties, licence-renewal fees and registration charges.

One operator, Dash Betting, reportedly accounted for Br8.64 billion of the outstanding amount. Ten other companies were collectively associated with approximately Br19 billion in liabilities.

The figures remain provisional. The full audit has not been published, and the reported amounts across individual categories do not align precisely. The final assessment may therefore clarify the scale and composition of the outstanding obligations.

ELS chief executive Beza Girma said the regulator would pursue legal measures to recover liabilities confirmed after the audit is completed. The review is also intended to inform structural changes to the industry.

Ethiopia Revoked All Sports Betting Licences in December 2025

The regulatory overhaul follows a nationwide enforcement campaign. On 4 December 2025, ELS suspended 22 sports betting operators while authorities investigated alleged financial and regulatory breaches. On 15 December, the regulator revoked all sports betting licences and ordered both online and land-based betting operations to stop.

The restrictions effectively removed licensed private sports betting from the Ethiopian market. In July 2026, ELS reiterated that no operator held a valid sports betting licence and warned the public against using unauthorised betting services.

Enforcement continued in August 2026, when the Government Communication Service reported action against 38 betting enterprises. The businesses were accused of practices including tax evasion, concealing revenue and customer data, and illicit financial transactions. Authorities said that company bank accounts had been frozen and business owners detained. The reported allegations should not be treated as proven findings of guilt.

Digital Monitoring Planned for the Market Relaunch

A central part of the proposed reform is a unified digital system designed to help regulators monitor operators’ financial and legal obligations. According to ELS, the system is intended to improve visibility over transactions and support more effective supervision.

The proposed approach signals a move away from relying primarily on retrospective checks towards more systematic monitoring of betting activity and payments due to the state.

For regulators, the immediate priorities include clarifying operators’ obligations, strengthening compliance controls and recovering outstanding payments where liabilities are confirmed. The new framework is also expected to address weaknesses exposed by the audit.

However, ELS has not yet released detailed technical requirements for the monitoring system or explained how the new controls will be incorporated into the licensing process.

The shutdown has also faced a legal challenge from betting operator Hulu Sport. The company petitioned Ethiopia’s Federal High Court, arguing that being under criminal investigation did not establish guilt and that it had not been given a proper opportunity to respond to the allegations.

The court set aside the regulator’s decision after finding that Hulu Sport had not been given an opportunity to answer the allegations. The ruling addressed the procedure used by the regulator rather than resolving the broader financial claims against operators.

According to Addis Fortune, the regulator appealed and obtained a 15-day stay while the case awaited review by the Court of Cassation. The dispute highlights the legal and procedural questions that may affect enforcement and any future return to licensed operations.

Legislative Framework for Sports Betting Remains Unclear

Ethiopia has also debated which government institutions should oversee the betting sector. During discussions on proposed sports legislation in March 2026, ELS chief executive Beza Girma objected to a provision that would have given the Ministry of Culture and Sports a role in establishing betting operations.

Girma argued that licensing and supervisory responsibilities belonged to the Ministry of Revenues, which had delegated relevant functions to ELS pending more detailed legislation. Culture and Sports officials, meanwhile, said the proposed framework was intended to involve relevant public bodies rather than override existing authority.

The Federal Sport Development and Management Proclamation No. 1413/2026 was gazetted on 3 July without the disputed betting provision. It established a Federal Sports Development Fund but did not specifically designate betting revenue as a source of funding. Further arrangements concerning the fund are to be determined through regulations issued by the Council of Ministers.

No Relaunch Date or New Licensing Process Announced

Despite preparations for reform, Ethiopia’s regulated sports betting market remains closed. ELS has not published a new application process, detailed licensing requirements or a timetable for operators to return.

The final audit and planned digital monitoring system are likely to be important parts of the next stage of reform. Authorities will also need to clarify how outstanding liabilities will be assessed and recovered and how the new framework will be enforced.

For operators and investors, the key development is not yet a confirmed reopening, but the government’s stated intention to rebuild the sector under tighter controls. Until ELS announces formal rules and opens a licensing process, the timing and conditions of any relaunch remain uncertain.

Source: https://igamingbusiness.com/legal-compliance/ethiopia-sports-betting-relaunch-audit/