• Home
• Ethiopia Revokes iGaming Licences and Shifts Market Offshore

Ethiopia Revokes iGaming Licences and Shifts Market Offshore

Ethiopia Revokes iGaming Licences Nationwide – Offshore Operators Gain Ground Amid Regulatory Uncertainty

Key Takeaways

– Ethiopia’s Lottery Service revoked all licensed iGaming operators and ordered financial institutions to halt gambling transactions in December.
– Twenty two sportsbooks had previously received cease and desist orders over alleged concealed revenues of up to Br100bn.
– Industry representatives report that betting activity has shifted to offshore and unlicensed operators since the ban.
– The regulator continues to operate its own lottery and gambling games online despite the broader shutdown.
– Market observers question whether a future licensed framework could effectively compete with offshore brands.

Nationwide Ban Halts Licensed Betting Operations

In December, Ethiopia’s Lottery Service (ELS) introduced a blanket ban on iGaming activities across the country. The regulator revoked the licences of all approved operators and instructed banks, payment gateways, and financial intermediaries to stop processing gambling related transactions in any form.

The move followed enforcement action taken only weeks earlier, when 22 sportsbooks were issued cease and desist directives. According to ELS, those operators had concealed revenues of up to Br100bn between them. The regulator described this as a significant failure in oversight and cited it as justification for suspending betting activities nationwide.

The decision effectively brought the licensed betting industry in Ethiopia to a halt. Operators that had previously offered regulated sports betting and other online gambling products were removed from the market in a single regulatory action.

Regulatory Rationale: Tax and Financial Integrity Concerns

Authorities stated that the shutdown was not limited to concerns about gambling activity itself. Abenezer Zewedu, CEO of RVT Technologies PLC, explained that the government’s concerns extended to alleged tax evasion, illicit financial flows, money laundering risks, and broader threats to financial integrity and national security.

These factors formed the official basis for the enforcement measures. By revoking licences and cutting off formal payment channels, the regulator aimed to address perceived systemic weaknesses in compliance and reporting.

However, the suspension was implemented as an indefinite measure, with no immediate indication of when or whether a new licensing framework might be introduced.

Shift Toward Offshore and Unlicensed Operators

Six months after the ban, commentators in Addis Ababa describe a market that continues to function outside the former regulatory framework. According to Zewedu, the shutdown did not eliminate demand for sports betting among Ethiopian users.

Instead, part of that activity appears to have migrated to offshore and unlicensed operators that remain accessible to local players. These platforms reportedly offer a user experience similar to that of previously licensed services. Customers can register accounts, place bets, deposit funds, and withdraw winnings.

The key difference lies in how transactions are processed. In many cases, payments occur outside formal banking systems and regulatory oversight. This shift complicates enforcement efforts and reduces transparency in relation to taxation and consumer protection.

Industry observers argue that while the licensed market has been dismantled, the underlying demand for betting services persists. As a result, gambling activity may continue in channels that are harder for authorities to monitor.

Regulator Continues Operating Its Own Gambling Products

While private licensed operators have been removed from the market, ELS continues to run its own lottery and gambling games through its website. This has led to questions within the industry about the structure of the current market.

Zewedu pointed to the contrast between the shutdown of private operators and the continuation of state run offerings. The situation raises questions about whether the policy objective is to reduce gambling overall or to control who is permitted to operate within the sector.

The coexistence of a state operated platform and a ban on private operators creates a market environment in which licensed competition is absent, while alternative options remain available through offshore providers.

Future Prospects for a Regulated Market

Before the ban, Ethiopia was described as one of the fastest growing gambling markets in Africa. The country is identified as the second most populated on the continent, with an estimated 139 people.

If ELS decides to reintroduce a licensed framework, commentators suggest that operators may face difficulties regaining market share. Offshore brands have reportedly benefited from an influx of players during the suspension of local licences.

Re establishing a regulated system would require rebuilding trust in compliance and oversight mechanisms. It would also involve addressing the competitive presence of platforms that have operated outside the domestic regulatory perimeter during the ban.

The central policy question, as outlined by industry representatives, is whether removing licensed operators while unlicensed alternatives remain accessible reduces overall gambling activity or shifts it into less transparent channels.

Our Assessment

Ethiopia’s decision to revoke all iGaming licences and suspend financial processing for gambling transactions has fundamentally reshaped its betting market. Licensed operators have been removed, while offshore and unlicensed platforms continue to serve local users. At the same time, the regulator maintains its own lottery and gambling offerings. Any future reintroduction of a regulated framework would take place in a market where demand persists but competitive conditions have changed significantly.