Prime Minister of Ethiopia Abiy Ahmed. PHOTO/Wikimedia Commons..
By SPECIAL CORRESPONDENT
Ethiopia has suspended 22 sports betting firms, including the Kenyan-based Betika, after the Ethiopian Lottery Service (ELS) uncovered that these companies had concealed Sh83 billion (approximately 100 billion Birr) in undeclared revenue.
The decision follows an extensive investigation into financial irregularities and illegal activities within the sector, which involved several government agencies.
The ELS’s directive, which came into effect immediately, applies to both active operators and those previously suspended. The review, which covered the national betting and financial sectors, revealed widespread violations of licence agreements, as well as illicit financial transactions posing a potential threat to national security.
The government has mandated an immediate cessation of all betting activities, both digital and otherwise. Additionally, deposit gateways and payment channels linked to the industry are now required to suspend their services.
Operators are further instructed to retain all server data, financial records, and user information securely. ELS has warned that any attempts to destroy, alter, or conceal evidence will result in criminal prosecution under Ethiopian law.
The suspension follows a coordinated enforcement operation involving Ethiopia’s National Intelligence and Security Service (NISS), the Financial Security Service, and the federal police.
Several key figures, including CEOs of betting firms and payment service operators, have been arrested as part of the crackdown. Computers and other equipment have been seized during the operation, which has led to heightened scrutiny of a rapidly expanding industry.
In an official statement issued on Monday, the Ethiopian Lottery Service directed all banks, payment operators, and financial intermediaries to halt the facilitation of transactions for betting companies. The government has indicated that the licences of all suspended firms will be revoked within the next two weeks.
Industry insiders estimate that the betting sector processes between 800 million and 1 billion Birr in daily transactions. The suspension follows months of investigation, which uncovered significant underreporting of financial activity and suspected large-scale money laundering.
These revelations, first highlighted by audits conducted in collaboration with the NISS, federal police, and local authorities, have underscored the need for greater oversight in a sector that has seen rapid growth in recent years.
