National Intelligence and Security Service, NISS Ethiopia, has announced the arrest of several sports betting operators and their associates who are suspected of hiding more than 100 billion Birr in revenue that should have been paid to the government.

According to the agency, a long-running investigation into betting companies and their partner institutions—Fintechs and Aggregators that provide payment services—led to the capture of 24 individuals. NISS stated that the inquiry uncovered widespread tax evasion, with companies withholding the required government dues despite handling massive sums of money.

Investigators found that many of these businesses were diverting revenue by converting funds into foreign currency using cryptocurrencies and global Hawala networks, enabling them to smuggle money out of Ethiopia illegally.

The investigation covered a range of operators: licensed companies that breached government agreements, businesses whose licenses were revoked, and groups running unlicensed betting operations entirely. NISS noted that many of these entities were still operating secretly through foreign internet connections.

When officials tried to inspect the offices of licensed operators, they discovered that none of the companies were operating from the locations they had registered. Their real operational sites were deliberately hidden. NISS also pointed out that some domestic payment service providers, though licensed by the National Bank, misused professional principles—such as “client confidentiality”—to support the illegal activities.

The agency further revealed that much of the money smuggled abroad was being funneled into terrorism financing, anti-peace groups, money laundering networks, and the contraband economy.

This crackdown comes at a time when concerns over gambling in Ethiopia are growing. On 22 November 2025, Addis Standard highlighted disturbing effects of betting addiction among university students, including financial collapse, academic setbacks, and psychological strain.

Students shared stories of how betting disrupted their lives. One admitted to failing the National University Exit Exam three times due to gambling during class hours. Others accumulated overwhelming debts through online betting platforms, borrowing from family members and digital credit services like Telebirr to keep gambling.

Several students described online betting as consuming their entire routine—one said it had become a “full-time job,” pushing education into the background. The consequences have included broken family relationships, university withdrawals, and severe financial pressure across multiple campuses.

With more than 70% of Ethiopia’s population made up of young people, regulators say the youth are particularly vulnerable to betting platforms. The Ethiopian Lottery Administration has acknowledged challenges in shutting down illegal gambling operations targeting the youth.

Globally, the World Health Organization identifies gambling as a serious public health issue. Research links it to mental health struggles, sleep problems, and strained personal relationships. Experts warn that the rise of mobile-based gambling intensifies these risks, especially among young people with easy access to smartphones.