Betika among 22 firms hit in Sh83.5billion Ethiopia gambling probe

In a sweeping crackdown on Ethiopia’s burgeoning sports betting industry, authorities have suspended the licences of 22 gambling firms, including prominent operator Betika owned by Shop & Deliver Limited amid allegations of widespread concealment of revenue and potential money laundering a probe involving an estimated Sh83.5 billion (100 billion Birr) that should have been reported as government revenue

The Ethiopian Lottery Service (ELS), the regulator tasked with overseeing the lottery and sports betting sector — announced the suspension of these companies’ licences, effective from late November 2025, following a multi-agency investigation into alleged financial improprieties. Licensing has been frozen indefinitely while the criminal probe continues, and authorities have emphasised that firms which fail to meet reporting, tax and compliance obligations will remain barred from operation.

The dramatic enforcement action including arrests and licence suspensions mirrors a similar episode that played out here in Kenya in 2019 when authorities abruptly suspended the licences of numerous betting firms as part of a broader regulatory clampdown. The Kenyan move disrupted the operations of major brands and reshaped the betting landscape there.

According to the ELS, owners and associated parties of the suspended betting companies are accused of deliberately hiding more than Br100 billion (approximately Sh83.5 billion) in revenue that should have been remitted to the state. The investigation is being conducted jointly by a task force comprising the National Intelligence and Security Service (NISS), the Financial Security Service, the Ethiopian Federal Police, and municipal security bodies in Addis Ababa and Dire Dawa.

ELS emphasised that destroying, altering or concealing evidence will attract criminal prosecution under Ethiopian law.

“Operators are obliged to securely retain server data, financial records and user information,” said ELS.

“The crackdown marks a dramatic shift in ELS’s regulatory approach following broader measures earlier in the year to tighten oversight of gaming and lottery operations. In April 2025, ELS launched Ethiopia’s first digital lottery platform as part of its modernisation drive, aimed at expanding access and enhancing transparency in state‑regulated gaming services,” Birr Metrics reported.

While the regulator has not publicly itemised the evidence against specific firms, the probe reportedly uncovered patterns of under-reporting earnings and diverting funds away from official oversight.

Authorities suspect that some operators may have used complex techniques including transmission of funds via cryptocurrencies and informal networks to conceal the true scale of revenue collected from bettors.

As part of the investigation, security forces have arrested dozens of individuals, including owners and executives associated with the gambling firms under scrutiny.

Authorities had already detained 24 individuals in late November, 2025 including owners and managers accused of hiding income through crypto transactions, hawala networks, and falsified payment records.

Investigators revealed that some operators abandoned offices or relied on foreign-hosted systems to avoid detection. These tactics allowed companies to divert funds that should have been taxed.

The NISS first shared findings that began the wider investigation. Since then, the Financial Security Service, federal police, and city security forces in Addis Ababa and Dire Dawa have joined the operation, supported by whistleblowers and informants.

The NISS indicated that suspects are being held on charges related to revenue concealment and could face further legal action depending on the outcomes of forensic financial reviews.

In addition to alleged tax evasion, some state security officials have linked the concealed funds to activities posing threats to national security, including money laundering, terrorism financing, and contraband trade networks though these assertions have not been independently verified by public auditors.

The latest suspensions extend the crackdown, targeting licensed firms believed to have played a role in the major scheme.

Besides Betika, others include; Dash Bet Single Member Plc, Walya Sports Plc, Xnet Solution Plc, HDM Afro Trading Plc, Black Pearl Trading Plc, Iconic Sports Entertainment Plc, Jumbo Bet Plc, Daabaak Trading Plc, ETL (QWK) Plc, BetArada Sports and Entertainment Plc, Vamos Entertainment Plc, Flash Sports Betting Plc, Universal Online Solution Plc, Zemen Sports Betting Plc, All Gaming Plc, Addis Telco Services Share Company (Betika Sports Betting), Unique /Mella/ Sports Betting Plc, Toto Sports Solution Plc, Kukulu Sports Plc, Merke Betting Plc, Champion Plc, and Bet Nine Ninety-Aar Plc.

“Dear customers, we would like to inform you that your favorite betting partner, Betika, has been suspended for an indefinite period. We will soon be back with improved odds, faster service, and a more efficient operation! Thank you for your patience,” Betika said on its website.

Betika’s operations extend beyond Ethiopia to countries including Kenya, the Democratic Republic of Congo, Ghana, Malawi, Mozambique, Tanzania, Uganda and Zambia, though its response has focused solely on the temporary Ethiopian suspension. Efforts to reach Betika’s Kenya office for a direct statement on the developments in Ethiopia were not immediately successful at the time of publication.

The suspension of Betika and 21 other firms marks a significant turning point for Ethiopia’s sports betting market, which has grown rapidly in recent years, driven by increased mobile internet penetration and a youthful population embracing digital entertainment. Before the crackdown, Ethiopia’s betting sector had attracted both domestic and foreign operators and was seen as part of a broader liberalisation of the economy.

However, regulators have acknowledged that enforcement capacity lagged behind the pace of market expansion, leaving gaps that some operators allegedly exploited to bypass oversight. The ELS noted that the withdrawals of licences were conducted under Proclamation No. 535/1999 and the Sports Betting Lottery Licensing Directive No. 172/2013, the legal frameworks designed to regulate and discipline the industry.