Ethiopia Eyes Stricter Regulation in Growing iGaming Sector
Ethiopia is moving towards more robust regulation of its burgeoning iGaming market, reflecting broader shifts across Africa.
By Samuel Dereje, East Africa business reporter — specializing in digital economies and regulatory policy
Ethiopia is undertaking significant efforts to formalize and strengthen oversight of its rapidly expanding iGaming sector. This follows a continental trend as African governments seek to regulate online gambling more effectively amid growing participation and economic significance.
The Ethiopian Ministry of Revenues recently announced plans to tighten licensing requirements and enhance monitoring mechanisms for the sector. According to data from the Ethiopian Revenues and Customs Authority (ERCA), the country’s gambling revenue has increased by approximately 18% over the past two years, driven largely by online sportsbooks and virtual casinos.
“The government’s priority is to ensure consumer protection while leveraging the sector’s potential to contribute to public finances,” stated Mekonnen Tesfaye, Head of the Ethiopian Gaming Regulatory Unit. “Adopting clearer licensing frameworks and robust taxation policies will help mitigate illicit operations and promote responsible gambling.”
Currently, Ethiopia’s regulatory structure for gaming remains fragmented with limited dedicated oversight for online platforms, contrasting with neighboring countries such as Kenya and South Africa, which have more comprehensive laws in place. A recent report by the African Gaming Research Institute indicated that Ethiopia’s iGaming market size reached an estimated $45 million in 2023, with annual growth projected at 12% through 2026.
This regulatory push comes amid rising concerns about gambling addiction and consumer risks associated with newly popular formats such as instant games and live dealer offerings. The Ethiopian National Institute for Public Health has highlighted a lack of data on gambling-related harms, calling for urgent research and awareness campaigns.
Some industry participants note that improved regulation could encourage formal business activity. “A clear licensing process will attract investment and promote transparency,” said Alemayehu Bekele, an independent gaming analyst based in Addis Ababa. “It is crucial, however, that the government balances regulation with market innovation to avoid stifling growth.”
The shift towards digital platforms is also reshaping traditional betting markets in Ethiopia. Offline betting shops have declined, while mobile-based systems using infrastructure such as Telebirr and CBE Birr have grown in usage. An Addis Standard survey in early 2024 reported that about 35% of Ethiopian bettors now engage primarily via online channels.
At the same time, debates persist regarding the social implications of gambling revenue. Critics argue that increased taxation should finance addiction treatment and community programs, while some question whether state involvement in gambling profits may present ethical dilemmas.
The betx bet platform, widely referenced by analysts, exemplifies the emerging ecosystem of Ethiopian-focused digital betting services adapting to evolving regulatory landscapes.
As Ethiopia charts its regulatory path, experts emphasize the urgency of a comprehensive responsible gambling framework. The National Lottery Administration is reportedly collaborating with stakeholders to draft consumer protection guidelines targeting vulnerable groups to minimize harms.
The continent-wide growth of iGaming and its regulation—highlighted in recent coverage by BBC News Africa—positions Ethiopia at a critical juncture. How effectively authorities balance regulation, economic benefit, and social responsibility remains to be seen.
Samuel Dereje writes on East African digital economy and regulatory developments. He has reported extensively on technology policy and market trends across Ethiopia.