If you are thinking about starting a betting business in Ethiopia, there is one thing you need to know before anything else:
Right now, nobody can legally run a sports betting business in Ethiopia.
The Ethiopian Lottery Service revoked every sports betting licence in December 2025. In July 2026 it confirmed that no betting company holds a valid licence. In September 2026, reports said the regulator is preparing to bring betting back under a new system, but no reopening date has been announced.
That does not mean the opportunity is gone. It means the order of work has changed.
Instead of rushing to launch, serious investors are using this pause to prepare their company, capital, compliance plan and technology, so they are ready on the day new licences open.
This guide explains what happened, what the old licence required, what the new rules are likely to focus on, and how to get ready step by step.
This guide is based on public reports available up to 28 October 2026. It is not legal advice. The rules are changing, so confirm every requirement with the Ethiopian Lottery Service and a licensed Ethiopian lawyer before you invest.
The Short Answer
| Question | Answer today |
|---|---|
| Can I open a sports betting business in Ethiopia now? | No. All licences were revoked on 15 December 2025 and no new licences are being issued. |
| Will betting come back? | The regulator says it is preparing a new framework. Officials have said a permanent ban is not realistic. |
| When will it reopen? | No date has been announced. |
| Can I take bets while I wait? | No. Taking bets without a licence is illegal, and the regulator is warning the public about unlicensed sites. |
| What can I do now? | Prepare your company, capital, compliance plan and technology so you can apply quickly when licensing reopens. |
What Happened to Sports Betting in Ethiopia
Sports betting grew very fast in Ethiopia. A draft audit reported in September 2026 estimated that licensed platforms handled about Birr 199 billion in bets between July 2023 and December 2025.
The same audit found a large gap between what operators owed the government and what they actually paid. Expected commissions were about Birr 30 billion, while only about Birr 3.6 billion was reportedly paid.
Here is what happened next, in simple terms:
- November 2025: Security authorities announced the arrest of 24 people linked to betting companies, over alleged tax evasion and illegal money transfers.
- 4 December 2025: The Ethiopian Lottery Service suspended the licences of 22 sports betting companies.
- 15 December 2025: The regulator revoked all remaining sports betting licences across the country.
- February 2026: At a parliamentary hearing, the State Minister of Culture and Sports said a permanent ban is not realistic and that Ethiopia needs a clear legal framework for betting.
- July 2026: The regulator confirmed that no betting company holds a legal licence and warned people not to deposit money with illegal sites. The public can report illegal operators on short code 9695.
- September 2026: Reports said the regulator is preparing to relaunch sports betting and digital lottery services, supported by one digital system that monitors operators' transactions.
The message is clear: betting is expected to return, but with much tighter control over money and data.
Who Regulates Betting in Ethiopia
Betting and lotteries are overseen by the Ethiopian Lottery Service. You may also see it referred to as the National Lottery Administration.
The regulator has told parliament that splitting oversight of the sector between two ministries made enforcement difficult. That is one more reason to expect changes in how licences are issued and supervised.
When licensing reopens, the regulator's official announcements will be the only reliable source of the new requirements. Be careful with agents or websites that claim they can "arrange" a licence before the new rules are even published.
What the Previous Licence Required
The new framework has not been published, so nobody can tell you its exact requirements yet. The previous rules are still useful, because they show the minimum level of preparation the regulator expected.
Under the sports betting rules that applied before the shutdown, applicants needed:
- a registered company,
- a trade licence and a tax identification number (TIN),
- a business proposal,
- an office that met the regulator's guidelines,
- an unconditional bank guarantee of ETB 1.5 million,
- and a licence fee of ETB 500,000, plus ETB 100,000 for each yearly renewal.
Operators also paid ongoing amounts:
| Item | Previous rule |
|---|---|
| Commission to the regulator | 15% of ticket revenue |
| Share of winning prizes | 15% |
| Contribution to social causes | 0.5% of total revenue |
| Minimum player age | 21 years |
The tax on winnings has changed too. In 2025, Ethiopia raised the tax on lottery and betting winnings above the earlier 15%, and published reports put the new rate between 20% and 25%. Confirm the current rate with a tax adviser before you build your financial model.
Treat these numbers as a starting point, not a final budget. The new framework may raise the guarantee, change the commission or add technical requirements.
What the New Rules Are Likely to Focus On
Based on what officials have said in public, the next framework is likely to care most about three things.
Every transaction must be visible
The regulator is building one digital system to monitor operators' transactions and financial obligations. In practice, your platform should be able to report bets, payouts, deposits and withdrawals accurately and on time, in whatever format the regulator asks for.
Taxes and commissions must be paid in full
The shutdown followed large unpaid commissions and alleged tax evasion. Expect stricter checks on how you calculate turnover, commissions and tax on winnings, and on whether your records match your bank and mobile-money statements.
Money must move through clean channels
Investigations pointed to crypto exchanges, informal transfer networks and payment aggregators being used to move money. Expect the regulator and payment providers to ask exactly how player money comes in and goes out.
How to Prepare While the Market Is Closed
You cannot launch yet, but you can be ready. The steps below take the longest, so they are worth starting now.
Step 1: Get proper legal and tax advice
Find a licensed Ethiopian lawyer who follows gaming regulation, and a tax adviser who understands turnover tax and tax on winnings. Ask them to watch the Ethiopian Lottery Service's official announcements so you hear about the new framework early.
Step 2: Decide your business model
Most betting businesses in Ethiopia use one of these models:
- Online only: players bet through a website and a mobile app.
- Shops and agents: players bet in person through cashiers or agents.
- Hybrid: shops and online share one platform, one wallet system and one set of reports.
Your model shapes your capital, staffing, office needs and technology.
Step 3: Plan your capital honestly
Budget for much more than the licence. A realistic plan includes:
- licence fees and the bank guarantee under the new rules,
- the betting platform and its integrations,
- a sports data provider for odds and results,
- payment integrations and transaction fees,
- staff for trading, finance, customer support and compliance,
- marketing within whatever advertising rules apply,
- and a cash reserve so you can always pay winners on time.
The cash reserve is the item new operators underestimate most. A few big upsets on a busy weekend can create large payouts very quickly.
Step 4: Build compliance in from day one
Regulators judge you on what your records can prove. Plan for:
- age and identity checks when players register,
- deposit and loss limits, cool-off periods and self-exclusion,
- checks for suspicious betting and money-laundering patterns,
- complete records of every bet, deposit, payout and staff action,
- and clear reports for tax, commissions and the regulator.
Step 5: Choose technology the regulator can trust
Your platform is where most of these rules are actually enforced. Look for:
- a betting engine that settles every ticket correctly,
- live odds that update and suspend quickly during matches,
- a wallet with a full transaction ledger,
- risk tools that control your exposure on popular matches,
- responsible-play tools for players,
- reporting that can connect to a regulator's monitoring system,
- and secure hosting that keeps data available for audits.
DreamTech builds sports betting software for Ethiopian and African operators, including the sportsbook, player apps, wallet, risk tools and operator console. Because a platform can be built before licences open, you can use the waiting time to build, test and document your system.
Step 6: Line up payment partners, but go live only after licensing
Players in Ethiopia mostly pay through mobile money and bank channels such as Telebirr and CBE Birr. Payment providers will want to see your licence before they open merchant accounts for betting. Prepare your documents and technical integration now, and switch payments on only after you are licensed.
Step 7: Prepare your team
You will need people for trading and risk, finance and reconciliation, customer support, compliance and IT. Train them before launch on disputes, voided bets, payout checks and responsible-play requests.
What Not to Do
A few shortcuts can end a betting business before it starts:
- Do not take bets without a licence. The regulator has warned the public against unlicensed sites, and authorities have taken action against betting businesses.
- Do not move player money through informal channels. Crypto exchanges and informal transfer networks were central to the investigations.
- Do not pay anyone who promises a guaranteed licence. Until the new framework is published, nobody can guarantee approval.
- Do not copy another company's website or brand. Build your own brand and platform so you control your data and your reputation.
Starting Sooner: Other African Markets
Some investors are using this time to launch first in another African country that is issuing licences, then bring the same platform to Ethiopia once it reopens.
Each country has its own regulator, taxes and rules. Kenya, for example, licenses betting through its Betting Control and Licensing Board. If you take this route, choose a platform that supports several countries, currencies, languages and payment providers, so you do not have to rebuild when you enter Ethiopia.
A Simple Readiness Checklist
| Area | You are ready when you can say... |
|---|---|
| Legal | I have a lawyer following the Ethiopian Lottery Service's announcements. |
| Company | My company, trade licence and TIN are in order. |
| Capital | I have budgeted for fees, the guarantee, technology, staff and a payout reserve. |
| Model | I know whether I will run online, shops and agents, or both. |
| Compliance | My plan covers age checks, limits, self-exclusion and anti-money-laundering. |
| Technology | My platform can report every transaction and connect to regulator monitoring. |
| Payments | My payment partners know my plans and are waiting for my licence. |
| Team | I know who will run trading, finance, support and compliance. |
Frequently Asked Questions
Is sports betting legal in Ethiopia in 2026?
Not at the moment. All sports betting licences were revoked on 15 December 2025, and in July 2026 the Ethiopian Lottery Service confirmed that no company holds a valid licence.
When will betting reopen in Ethiopia?
No date has been announced. The regulator is preparing a new framework and a digital system for monitoring operators, and officials have said a permanent ban is not realistic.
How much did a betting licence cost in Ethiopia?
Under the previous rules, the licence fee was ETB 500,000, renewal was ETB 100,000 a year and applicants needed an ETB 1.5 million bank guarantee. The new framework may change these amounts.
What was the minimum betting age in Ethiopia?
Under the previous rules, players had to be at least 21 years old.
Can I prepare my betting platform before I have a licence?
Yes. You can design, build and test your platform before licensing reopens. You cannot take real bets or real money from players until you are licensed.
Can DreamTech get a betting licence for me?
No. The operator applies for and holds the licence. DreamTech builds the software and helps document the controls, reports and records a licence application may require.
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