Ethiopia has revoked all sports betting licences with immediate effect, ordering a nationwide shutdown of betting operations after regulators said investigations uncovered illegal financial practices posing risks to national security.

The decision was announced on Monday by the Ethiopian Lottery Service (ELS), which instructed all licensed betting companies to cease operations immediately, both online and at physical outlets.


Nationwide shutdown ordered

In a statement, the ELS said the action followed a “nationwide, in-depth assessment of betting and the financial sector” that revealed serious breaches by operators.

The regulator said it had identified “illegal practices, violations of licensing agreements, and illegal money transfers assessed as posing risks to national security.”

All betting companies have been banned from accepting new bets or deposits. Banks and payment service providers have been ordered to block all betting-related transactions, with enforcement coordinated across multiple government institutions.

The ELS warned that legal consequences will follow for any entity that fails to comply.


Operators ordered to preserve data

As part of the enforcement action, betting operators have been instructed to preserve all server data, financial records and customer information.

The regulator said any destruction, alteration or concealment of evidence would attract criminal liability.


22 operators already suspended amid revenue probe

The full revocation follows earlier enforcement action taken in November, when the ELS suspended the licences of 22 Ethiopian sports betting sites and companies after uncovering suspected large-scale revenue concealment.

According to the regulator, investigators believe the affected operators under-reported gambling revenue exceeding Br100 billion ($2.3 billion) that should have been paid to the state. The suspensions took effect on 25 November 2025 and were issued under Proclamation No. 535/1999 and the Sports Betting Lottery Licensing Directive No. 172/2013.

“The owners and accomplices of sports betting organisations suspected of hiding more than Br100 billion which should have been government revenue have been apprehended,” the ELS said.


Intelligence-led enforcement

The investigation involves the National Intelligence and Security Service (NISS), the Financial Security Service, the Ethiopian Federal Police, and security units from Addis Ababa and Dire Dawa.

Authorities have confirmed the arrest of 24 individuals, including company owners, executives and alleged accomplices. Investigators are examining whether some funds were routed through informal or offshore channels, though those allegations remain under review.

The ELS said the decision to suspend and now revoke licences was based on intelligence provided by the NISS.


Rapid growth, weak oversight

Ethiopia’s sports betting market has expanded rapidly in recent years, driven by mobile internet growth, digital payments, and a young population. Regulators have previously acknowledged that enforcement capacity struggled to keep pace with the sector’s expansion, allowing some non-compliant operators to operate with limited scrutiny.

A report by Birr Metrics quoted the ELS as saying the crackdown is aimed at “protecting government revenue, ensuring public trust and promoting transparency” in the betting industry.


What happens next

The ELS said a number of betting firms had previously operated in compliance with reporting and tax obligations, but confirmed that stricter supervision will now apply across the entire sector.

All sports betting activities will remain halted pending the outcome of criminal investigations and further regulatory decisions.

For Ethiopia’s gambling industry, the move represents the strongest enforcement action to date, signalling a zero-tolerance approach where financial compliance and national security concerns intersect.