Ethiopia has enacted a sweeping shutdown of its sports betting sector, revoking all existing operating licences and ordering an immediate halt to wagering activity across the country. The decision, which took effect on December 15, 2025, applies to every licensed betting operator and covers online platforms, retail betting shops, agents, and associated payment services.

Immediate Halt to Betting and Payment Activity

The Ethiopian Lottery Service confirmed that the action followed a nationwide investigation into the betting industry and financial systems. According to authorities, the review uncovered repeated breaches of licensing conditions, illegal financial transfers, and activities considered a threat to national security. The regulator stated that the decision was taken under federal government instructions and within its existing regulatory powers.

The move represents a sharp escalation from earlier enforcement actions. Earlier this month, regulators had already revoked the licences of 22 specific betting companies following investigations into alleged revenue concealment exceeding 100 billion birr. That earlier step has now been expanded into a blanket cancellation of all sports betting licences, including those belonging to operators that had not previously been suspended.

Under the directive, betting firms must stop accepting wagers without delay. No new bets may be placed, and all payment systems linked to betting accounts must be disabled immediately. The Ethiopian Lottery Service also clarified that the loss of operating permission does not remove existing obligations. Operators remain responsible for unsettled bets and customer balances despite the suspension of their licences.

In addition to halting activity, licence holders have been placed under strict data preservation requirements. Companies must secure server records, financial documentation, and user data. The regulator warned that destroying, concealing, or altering records would be treated as a criminal offence under Ethiopian law.

Banks and payment institutions have also been drawn directly into enforcement. Financial institutions have been instructed to block or suspend all transactions connected to betting organisations whose licences have been revoked. Authorities said they would monitor compliance in coordination with other government bodies and pursue legal action against any institution that fails to comply.

Earlier Suspensions and Criminal Investigations

The nationwide shutdown follows enforcement measures taken in November, when the Ethiopian Lottery Service suspended the licences of 22 betting companies as part of a criminal investigation. In a press release at the time, the regulator stated: “The Ethiopian Lottery Service announces that the sports betting licences of 22 sports betting organisations have been suspended effective November 25, pursuant to Article 14/2/C/ of Proclamation No. 535/1999 and Sports Betting Lottery Licensing Directive No. 172/2013.”

Authorities linked those suspensions to suspected under-reporting of betting revenue. The regulator added: “It is known that the owners and accomplices of sports betting organisations suspected of hiding more than 100 billion 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.”

Investigations into those companies remain ongoing, and regulators have stated that licence suspensions were imposed pending the outcome of criminal proceedings. Officials have confirmed that 24 individuals were arrested in connection with the alleged concealment of gambling revenue.

Legal analysts have raised concerns about the process used to revoke all licences at once. Samuel Taye, a legal analyst, questioned whether collective sanctions align with established legal principles. He argued that regulators should allow individual companies to respond to allegations before penalties are imposed.

“The principle is individuation of punishment,” said Samuel, adding that entities should only be held responsible for their own conduct rather than facing collective sanctions alongside compliant operators.

Analysts have also warned that the sudden and comprehensive nature of the crackdown could weaken investor confidence, particularly as Ethiopia has sought to encourage private investment and liberalise parts of its economy. According to Ethiopian Business Review, the Ethiopian Lottery Service has not indicated whether affected operators will be granted individual hearings or whether differentiated outcomes may follow as investigations continue.

For now, regulators have not outlined any plans for a future licensing framework or the possible reopening of the sports betting market. Officials have framed the decision as a containment measure focused on stopping wagering, freezing financial flows, and securing evidence for ongoing investigations. The regulator has stated that it “will strictly monitor the implementation of this decision” and warned that any party continuing to operate or facilitate betting in defiance of the order “will be held legally accountable.”