Ethiopia Strengthens Regulation of Its Growing Gambling Market
New measures aim to balance market growth and consumer protection in Ethiopian iGaming sector
By Samuel Teklu, East Africa business reporter — covering gaming markets and regulation in Ethiopia and the region
Ethiopia has recently enacted a comprehensive regulatory framework intended to oversee its expanding gambling and iGaming industry, signaling a turning point for betting activities in the country. The new policy focuses on licensing procedures, taxation, and responsible gambling practices, reflecting a regional shift towards formalised oversight amid increasing market activity.
The Ethiopian Ministry of Revenue announced in April 2024 that all companies offering betting, lotteries, and online gaming services must now obtain official licenses under stricter criteria. This move aligns Ethiopia more closely with neighboring countries such as Kenya and Uganda, which have formalised gambling regulations geared at curbing unregulated operations and ensuring public safety.
According to market data published by a local research agency in March, the Ethiopian gambling sector witnessed annual growth of 21% between 2020 and 2023, with estimated revenues exceeding 30 billion Ethiopian Birr by the end of 2023. Analysts attribute this surge in part to mobile money uptake and digital payment methods like telebirr, which facilitate convenient betting transactions across urban and rural areas.
“The government’s new licensing framework is essential to safeguard consumers while encouraging responsible operators,” said Dr. Amanuel Kebede, a regulatory affairs consultant based in Addis Ababa. “Without clear rules, the risk of fraud, underage play, and addiction increases, which could undermine the sector’s long-term viability.”
The policy also introduces a taxation scheme requiring operators to contribute 15% of gross gaming revenue to the state coffers. While this rate is lower than Rwanda’s 20%, it reflects a willingness to balance revenue generation with market competitiveness. However, some industry voices warn that high taxes could paradoxically encourage illicit gambling providers to flourish, as users seek cheaper alternatives offline or through unregulated platforms.
Particularly noteworthy is the increased focus on responsible gambling measures within the framework. Providers are mandated to offer self-exclusion mechanisms and promote awareness campaigns about gambling risks. This is critical given a recent World Bank report highlighting rising cases of gambling-related harm in East Africa, including Ethiopia.
Public discourse in Addis Ababa and other cities such as Dire Dawa and Hawassa has frequently raised concerns over young people’s access to betting products, especially via online portals. The growth of platforms including the chatki bet et app illustrates how digital services are reshaping consumer engagement but also complicating effective monitoring.
Moreover, experts note that while online betting is proliferating, a significant portion of the market still operates through physical shops, reflecting a transitional phase. This duality requires regulators to adapt enforcement practices and consumer education accordingly. The Ethiopian Gaming Commission, newly established as part of the regulatory overhaul, has pledged intensified inspections and licensing reviews throughout 2024.
Industry observers also highlight the impact of increased gambling tax revenues on government budgets, potentially funding social programs or sports development. Yet, ethical debates persist about relying on gambling proceeds amid addiction risks. Civil society groups in Addis Standard have voiced calls for inclusive stakeholder dialogue on the social costs of expanded gambling activity.
As Ethiopia aligns its regulatory landscape with broader African trends, questions remain on how effectively the new rules will balance market expansion with protective safeguards. The ongoing enforcement outcomes will be critical to charting a sustainable path forward in a sector marked by rapid digital transformation and complex social dynamics.
Samuel Teklu writes on East African business and regulatory affairs. He has reported extensively on Ethiopia’s digital economy and market reforms.