Ethiopian authorities have arrested the owners and associates of a major sports-betting operator suspected of embezzling more than 100 billion birr (about USD 1.7 billion) in government revenue, according to a statement from the National Intelligence and Security Service (NISS).
NISS said it conducted an extensive investigation into both licensed and unlicensed betting companies, along with local financial technology firms—known as fintechs or aggregators—that facilitate digital payments for the industry. The probe found that several operators had violated licensing terms, continued operating after license revocation, or ran betting platforms without any license, using international internet networks to avoid domestic oversight.
Systematic Revenue Diversion
Investigators allege that betting companies, working with local payment processors, concealed massive inflows of money that should have been taxed or routed into government accounts. Authorities say the firms underreported collections, failed to pay taxes tied to betting turnover, and used cryptocurrency channels and international money-transfer networks to move profits offshore.
The statement further claims that domestic fintech intermediaries—despite being licensed by the National Bank of Ethiopia—aided tax evasion by “hiding or understating” transaction volumes, using client-confidentiality rules as a cover.
Multi-Agency Operation
A total of 24 suspects were detained through a coordinated operation involving NISS, the Federal Police, the Financial Security Service, and security forces in Addis Ababa and Dire Dawa. Authorities said many of the implicated operators had abandoned their registered offices, used foreign-developed software, and employed associates of multiple nationalities, making the operation harder to detect.
Funds Allegedly Linked to Illicit Networks
According to NISS, a portion of the smuggled funds was used to finance terrorism, launder illicit money, and support anti-government activities, framing the scheme as both an economic and security threat. The agency described the operation as an attempt to “undermine Ethiopia’s national security and macroeconomic reform agenda.”
Authorities urged the public to report suspicious financial activities as the investigation continues.
