For several months now, residents of Ethiopia’s capital have been unable to place sports bets at traditional bookmakers. The authorities in Addis Ababa have imposed a ban on gambling establishments within the city limits. This decision has effectively forced local players to move to online betting. Fortunately, the activities of popular bookmaker sites such as https://1xbet.et/en and other legal platforms holding national licenses remain unrestricted.
It cannot be said that this move by city officials came as a complete surprise. The widespread closure of land-based betting shops had already begun earlier, but some of them continued to operate. Now, however, all such establishments have been banned without exception. Will this firm stance by the leadership of Addis Ababa serve as an example for other cities in Ethiopia? For now, it seems that a complete ban on gambling in the country is not expected in the near future.
Why Betting Was Banned in Addis Ababa
The authorities explained their decision to shut down all city-based bookmakers by citing a desire to protect the youth and other segments of society from the detrimental effects of gambling. They linked the sharp rise in thefts, robberies, and family conflicts to the negative impact of betting activities. Whether one agrees with this or not, this was the stated reasoning.
Naturally, the stance of the capital’s authorities has not been approved by Ethiopia’s gambling market regulator, the National Lottery Authority. In a statement, the organization’s leaders pointed out that this decision represented a significant loss of potential revenue for the country’s budget. Before the complete ban, thousands of betting shops operated in Addis Ababa, generating millions of ETB in revenue. Moreover, what about the employees of the closed companies who are now out of work? Could they become an additional source of social tension? And is there any point in such a harsh restriction on gambling when anyone can simply download 1xbet Ethiopia apk for easy betting or visit any bookmaker’s website?
For the city administration, these arguments were unconvincing. According to one government representative, the primary focus is on preventing social problems that hinder the well-being of citizens, with everything else being secondary. Since bookmakers are considered one of the primary sources of the spread of “social ills,” there are no plans to reopen them anytime soon, even if it negatively affects the budget.
As for the former employees of the betting shops, officials claim that they are actively being assisted in finding alternative sources of income. Property owners, whose spaces were previously rented by bookmakers, are being offered new tenants. In general, the authorities maintain full control over the situation, but that is another matter entirely.
How Ethiopia’s Gambling Industry Works
Representatives of the National Lottery Authority generally agree that gambling can become a problem, especially among the youth, but they emphasize the difference between legal and illegal establishments. The former operate according to the regulator’s rules and pay taxes responsibly. Each month, tens of millions of ETB are transferred to the state budget in the form of commissions. The income tax from winning bets also contributes substantial amounts. Therefore, there are no formal reasons to ban companies that operate within the legal framework.
Additionally, legal bookmakers allocate significant funds to social projects every month. Many go even further. For example, by joining 1xBet at https://1xbet.et/en/registration, players can not only enjoy online betting in comfort but also become part of a community providing strong sponsorship support for sports. The company partners with renowned brands such as CAF, Barcelona, PSG, Volleyball World, and many others.
Obtaining a gambling license in Ethiopia requires significant investment. Licenses are only issued for betting shops and lottery organizers. All other forms of gambling for money are prohibited in the country. The application procedure for a license includes:
- Preparing a business proposal;
- Submitting documents confirming the presence of an office that meets the NLA‘s requirements;
- Paying a mandatory licensing fee of 500,000 ETB;
- Providing a bank guarantee of 1,500,000 ETB.
After receiving approval from the National Lottery Authority, the operator has 60 days to establish the gambling platform. Betting licenses are issued only to local entrepreneurs. By law, foreign companies are not allowed to engage in such activities, but they may act as suppliers of games, services, and technology.
Many market participants speak about the need to improve the taxation system. Currently, the NLA implements the tax policy prescribed by the Ministry of Revenue. It includes a 15% tax on the turnover of gaming brands. The regulator explains that this tax is primarily a measure of restriction aimed at deterring operators from seeking easy profits and further protecting consumers from dishonest service providers.
Honestly, this position seems strange when discussing market legalization. It seems the National Lottery Authority is also aware of this. The regulator is currently working on improving its tax policy by taking into account the experience of other African countries. A more progressive approach would be a tax based on GGR or NGR. To implement new ideas, appropriate technologies will be needed. The NLA plans to create a unified electronic system for centralized monitoring and management of Ethiopia’s entire gambling ecosystem.More about the National Lottery Authority’s goals and tasks for the near future can be learned from an interview with the head of the organization iGaming Africa. The main takeaway: the country’s gambling industry needs serious changes to make it more transparent and safer.