Ethiopian Authorities Crack Down on Illicit Sports-Betting Operations
Ethiopian authorities have launched a significant operation targeting sports-betting companies suspected of concealing over 100 billion birr (approximately $2 billion). The National Intelligence and Security Service (NISS) reported the detention of 24 individuals linked to these illicit operations, highlighting ongoing concerns about government revenue loss.
Investigation Highlights
According to NISS, the investigation focused on various betting operators and payment-system providers, including fintech and aggregator firms, that were allegedly involved in illicit activities. The agency’s surveillance revealed that unlicensed operators and those with revoked licenses continued to offer services via international internet connections, circumventing regulatory oversight.
Joint Task Force Operations
A coordinated effort involving the NISS, Financial Security Service, and the Federal Police led to the arrests in key locations, including Addis Ababa and Dire Dawa. Officials reported that several licensed betting companies abandoned their registered premises as scrutiny intensified, indicating a widespread attempt to evade regulatory oversight.
Concealment of Revenue
NISS stated that many betting companies collaborated with local fintech firms to hide financial transactions, failing to declare or pay necessary taxes. This sophisticated evasion included converting earnings into foreign currency through cryptocurrency platforms and international hawala networks—a method often used for transferring money informally without formal banking systems.
Issues with Payment Systems
Payment-system providers licensed by the National Bank of Ethiopia were also implicated, as they reportedly withheld or under-reported the financial activities of betting firms by citing client confidentiality rules. The investigation revealed that foreign nationals were managing these operations from abroad through powers of attorney granted to local partners. The use of foreign software and the lack of fixed business addresses posed additional challenges for regulatory bodies attempting to conduct supervision.
Public Call to Action
NISS has encouraged the public to remain vigilant and report any suspicious activities to relevant authorities. Transparency in the betting industry is critical for safeguarding government revenue and ensuring lawful practices.
For more information on legal betting practices, visit the National Bank of Ethiopia and read about the importance of regulatory compliance in financial sectors.
By addressing these concerns around unregulated betting, Ethiopian authorities aim to protect citizens and reclaim lost government revenue, fostering a safer and more transparent gambling landscape.
