Ethiopia Cracks Down on 38 Betting firms Over Illegal Activities

The Government of the Federal Democratic Republic of Ethiopia has announced a series of uncompromising measures against individuals, businesses and organized networks accused of disrupting the country’s ongoing macroeconomic reforms and exploiting national resources.

During a press briefing, Minister of the FDRE Government Communication Service, Mrs. Enatalem Melese, said the government has made significant progress in driving economic growth and development in recent years. However, she noted that widespread illegality, corruption and organized economic crimes continue to pose significant challenges to the country’s development.

According to the Minister, illegal activities are not limited to a particular sector. Instead, they involve coordinated networks operating both within Ethiopia and internationally, with unlawful practices reportedly affecting businesses, public enterprises, government institutions, private individuals and service providers.

“These entities infiltrated the financial and commercial systems to commit severe economic sabotage aimed at destabilizing the home-grown economic reform,” Mrs. Enatalem said.

She explained that such activities contributed to foreign exchange shortages, increased inflation, contraband trade and artificial shortages of essential goods. Government authorities and law enforcement agencies have subsequently carried out extensive operations targeting networks involved in these activities.

The betting and gaming sector was among the industries targeted in the government’s latest enforcement actions. Authorities took action against 38 betting enterprises accused of concealing customer information to evade taxes, hide revenues and facilitate illicit financial flows.

The owners of the affected betting businesses were taken into custody, while their bank accounts were frozen as part of the investigations. The action highlights the Ethiopian government’s focus on betting industry compliance, financial transparency and regulatory oversight, particularly in relation to operators suspected of engaging in illegal activities.

Betting operators that fail to properly report customer activity, gaming revenues or financial transactions can create opportunities for tax evasion, money laundering and other illicit financial activities. The latest enforcement measures therefore underscore the importance of compliance with applicable laws and regulatory requirements within Ethiopia’s gaming sector.

The government also reported enforcement actions across several other sectors as part of its broader campaign against corruption, economic sabotage and illegal activities.

Macroeconomic Reform Protection: Authorities warned the owners of 13 supplier organizations accused of deliberately hoarding basic consumer goods to create artificial shortages and drive-up prices. More than 7,000 businesses and warehouses involved in illegal activities were also sealed.
Financial Institutions and Currency Transactions: Legal action was taken against 169 Ethiopian and foreign nationals accused of participating in illicit money transfers, hawala and black-market currency trading. A further 36 individuals accused of systematically defrauding customers of the Commercial Bank of Ethiopia were arrested, with their bank accounts frozen.
Cryptocurrency and Export Controls: Authorities blocked seven cryptocurrency applications allegedly being used to facilitate illegal transactions. Legal action was also taken against 29 export companies and individuals accused of failing to repatriate foreign currency earnings following exports.
Gold Smuggling and Mining: A total of 183 individuals, including government officials, security sector leaders, producers and foreign nationals, were held accountable for allegedly smuggling gold outside the legal market. Foreign nationals implicated in the offenses were deported, while authorities seized illegal gold, weighing scales, melting equipment, foreign currencies and firearms.
Fuel Supply and Logistics: Legal proceedings were initiated against 38 government officials accused of creating fraudulent cover letters, hoarding fuel and facilitating fraudulent “air-to-air” transactions. Nationwide operations also targeted more than 650 individuals, fuel stations and supplier companies allegedly involved in illegal fuel trading.
Fertilizer Procurement: Criminal charges were brought against officials within the Ministry of Agriculture accused of creating conflicts of interest in the procurement of low-quality and expired agricultural fertilizer.
Ethiopian Electric Power: Four senior executives of Ethiopian Electric Power were held accountable for allegedly authorizing power-sale agreements with 36 data-mining companies without the required regulatory directives. Authorities also took action against companies and individuals accused of electricity theft.
Labor and Human Trafficking: Eight senior officials and employees accused of distorting the overseas employment system and accepting bribes were arrested. Authorities also arrested 44 brokers and traffickers allegedly involved in illegal human-smuggling networks and shut down entities operating under illegal licenses
Revenue and Customs: Enforcement operations targeted individuals accused of causing substantial losses to the state through reduced tax assessments, fraudulent invoices and the deletion of system data. Of 109 identified suspects accused of transferring illicit proceeds through personal, relatives and drivers bank accounts, 91 individuals have been arrested.

Mrs. Enatalem reaffirmed that the government intends to confront corruption, theft and economic sabotage with the same determination applied to other major national challenges. For the betting and gaming industry, the crackdown underscores the importance of regulatory compliance, licensing requirements, tax transparency, accurate customer data and financial reporting.

The Minister said the government remains committed to establishing a more disciplined leadership structure and modern, transparent systems capable of preventing corruption and protecting public resources. She also called on citizens to support the fight against corruption by reporting unlawful activities, refusing to pay bribes, avoiding collusion with illegal actors and helping authorities expose corrupt practices.

The government said collective action will be essential to strengthening economic governance and ensuring that businesses, including those operating in the betting, gaming and fintech sectors, operate within the country’s legal and regulatory framework.