Ethiopia Targets 38 Betting Firms in Crackdown on Tax Evasion and Illegal Financial Activities

Ethiopian authorities have intensified their crackdown on illicit financial activities, taking enforcement action against 38 betting businesses accused of concealing customer information, underreporting revenue and facilitating illegal financial flows.

According to the Government Communication Service (GCS), the owners of the targeted betting enterprises were detained, while their bank accounts were frozen as part of the operation. Authorities said the measures were designed to disrupt activities believed to be undermining the country’s economic and financial systems.

The development is particularly significant for Ethiopia’s gambling sector, as the Ethiopian Lottery Service currently states that there are no legally licensed sports-betting operators in the country.

Government Communication Service Minister Enatalem Melese said the betting businesses were among a wider network of entities allegedly exploiting Ethiopia’s financial and commercial systems. According to Melese, the networks were involved in activities that authorities believe posed a serious threat to the government’s economic reform programme.

The minister linked the broader illegal activities to several economic challenges, including foreign-exchange shortages, inflation, contraband trading and the artificial creation of shortages of essential goods. He said government agencies and law-enforcement bodies had been working to dismantle the networks and prevent further disruption to the economy.

The betting-sector action was part of a much wider enforcement campaign. Authorities reported that more than 7000 businesses and warehouses allegedly connected to illegal activities had been sealed.

The government also announced legal proceedings against 169 Ethiopian and foreign nationals accused of involvement in illicit money transfers, hawala operations and black-market foreign-currency trading. In addition, seven cryptocurrency applications were blocked after authorities alleged that they were being used to facilitate or conceal unlawful transactions.

The GCS has not publicly named the 38 betting enterprises targeted in the operation, nor has it revealed the amount of money allegedly hidden or transferred through the businesses.

The latest enforcement measures highlight Ethiopia’s continued efforts to strengthen financial oversight, combat corruption and restrict unregulated economic activity as the government seeks to safeguard its broader macroeconomic reform agenda. For the gambling industry, the action also underscores the importance of licensing, financial transparency, tax compliance and robust customer-data controls in the Ethiopian market.