Gambling in Ethiopia is primarily regulated by the National Lottery Administration (NLA), under the Ministry of Finance.
Licenses are only issued for sports betting and lottery operations; all other gambling forms are prohibited.
Online casino gambling lacks regulation and licensing, leaving it in a legal gray area with no domestic operators.
A sports betting license requires a trade license, company registration, a bank guarantee of ETB 1.5 million, and a fee of ETB 500,000.
Operators must pay a 15% tax on ticket revenues and winnings, plus 0.5% of total revenue to social causes.
Foreign companies cannot directly obtain licenses; at least one Ethiopian co-founder is required for local operations.
Strict responsible gambling measures and age restrictions are enforced, with underage gambling explicitly prohibited.
Technical Compliance Assistance
Our specialists will help you understand technical compliance requirements for gambling operations
Legislation
Primary Legislation
Gambling in Ethiopia is governed by a set of core legislative acts and regulatory directives. The main laws currently in force are:
National Lottery Administration Re-establishment Proclamation No. 535/2007: This proclamation re-established the National Lottery Administration (NLA) as the central authority responsible for regulating and supervising all forms of legal gambling activities in Ethiopia.
National Lottery Administration Re-establishment Council of Ministers Regulation No. 160/2009: This regulation outlines the powers, duties, and organizational structure of the NLA, granting it the authority to issue permits, supervise gambling operations, and revoke licenses for non-compliance.
Sports-Betting Lottery Directive No. 172/2021: Enacted in September 2021, this directive provides detailed rules specific to sports betting lotteries, including operational standards and compliance requirements for licensed operators.
These laws collectively define the legal framework for gambling in Ethiopia. They authorize only certain forms of gambling—primarily sports betting and lotteries—while other forms, such as online casinos and most other gambling verticals, remain unregulated or prohibited. There is currently no specific regulation addressing online gambling or online casino operations.
Regulatory Authority
The central regulatory body overseeing gambling in Ethiopia is the National Lottery Administration (NLA). The NLA operates under the supervision of the Ministry of Finance and Economic Development and is empowered by the above legislation to regulate the sector.
Issuing licenses and permits for sports betting and lottery operations
Supervising and monitoring licensed gambling activities to ensure compliance with legal and regulatory standards
Revoking licenses and taking enforcement action against non-compliant operators
Developing and implementing directives and policies related to responsible gambling and sector oversight
The NLA is the sole authority for legal gambling activities in Ethiopia. It does not currently regulate or license online gambling outside of sports betting and lottery games, and other forms of gambling remain outside the scope of its regulatory framework.
License Types
Types of Gambling Licenses Available in Ethiopia
Sports Betting License: The primary license available is for sports betting operations, both land-based and online. This includes betting shops and sports-betting lottery operations.
Lottery License: Licenses are also available for organizing and operating lottery games, including tombola and raffles.
Other Forms: There is currently no licensing system for online casino gaming, poker, or other gambling verticals. Land-based casino operations are extremely limited and not subject to a formal licensing process under current regulations.
Licensing Application Process
Regulatory Authority: The National Lottery Administration (NLA) is the sole body responsible for issuing gambling licenses in Ethiopia.
Eligibility: Only companies with at least one Ethiopian citizen as a co-founder are eligible for a sports betting or lottery license. Foreign companies may participate as technology or service providers but cannot hold a direct B2C license.
Prerequisites:
Company formation and registration
Trade license acquisition
Tax Identification Number (TIN) certificate
Application Steps:
Submit a comprehensive business proposal to the NLA
Provide proof of an office location that meets NLA standards
Pay the required license fee
Provide a bank guarantee of ETB 1,500,000
Approval and Operation: Once approved, the licensee must commence operations within 60 days (2 months) of license issuance.
License Duration, Renewal, and Conditions
Initial License Duration: Licenses are typically granted for a period of one year.
Renewal: Licenses must be renewed annually. The renewal process requires payment of the renewal fee and continued compliance with all regulatory requirements.
Renewal Fee: The renewal fee for a sports betting or lottery license is ETB 100,000 per year.
Operational Requirements: Licensees must maintain a physical office, uphold responsible gambling measures, and comply with all NLA directives.
Licensing Costs and Financial Requirements
License Type
Initial License Fee
Renewal Fee (Annual)
Bank Guarantee
Sports Betting
ETB 500,000
ETB 100,000
ETB 1,500,000
Lottery
ETB 500,000
ETB 100,000
ETB 1,500,000
Key Requirements for Obtaining and Maintaining a License
Company must be registered in Ethiopia with an Ethiopian co-founder
Trade license and TIN certificate must be obtained prior to application
Physical office location that meets NLA standards is mandatory
Submission of a detailed business proposal and operational plan
Provision of a bank guarantee to the NLA as financial security
Payment of all applicable fees (initial and renewal)
Adherence to responsible gambling practices and prevention of underage gambling
Compliance with all ongoing NLA regulations and directives
Summary Table: Ethiopian Gambling Licensing System
Aspect
Details
Regulator
National Lottery Administration (NLA)
Available Licenses
Sports Betting, Lottery
Eligibility
Company with Ethiopian co-founder
Initial License Fee
ETB 500,000
Renewal Fee
ETB 100,000 per year
Bank Guarantee
ETB 1,500,000
Application Steps
Company registration, trade license, TIN, business proposal, office proof, fee payment, bank guarantee
Amount of winnings (except for winnings less than 100 birr)
Contribution to Social Causes
0.5%
Total revenue
Basis for Taxation
Gambling operators are taxed on a turnover basis. The main tax is a 15% levy on total ticket sales or betting turnover, not on gross gaming revenue (GGR).
Additionally, operators must pay 15% of the amount paid out as winnings to the National Lottery Administration.
There is a mandatory 0.5% contribution of total revenue to social causes, as stipulated by the regulator.
Tax Reporting and Payment Procedures
Operators are required to register for tax purposes and obtain a Tax Identification Number (TIN) as part of their licensing process.
Tax payments are generally made monthly, with operators required to submit returns and remit the due taxes to the authorities within the specified period after the end of each month.
Failure to pay taxes on time can result in penalties and interest as per general Ethiopian tax law.
Operators must maintain accurate records of all bets placed, winnings paid, and revenue generated for tax reporting and audit purposes.
Tax Incentives, Exemptions, and Special Provisions
There are no specific tax incentives or exemptions for gambling operators beyond the general provisions of Ethiopian tax law.
Winnings below 100 birr are exempt from the 15% tax on player winnings.
The contribution to social causes was previously 20% but has been reduced to 0.5% of total revenue.
The current turnover-based taxation system is under review, with discussions about potentially moving to a GGR-based model in the future, but no changes have been implemented as of April 2025.
Prohibited Individuals
Age Restrictions and Identification Requirements
The minimum legal age for participating in licensed gambling activities in Ethiopia is 21 years. Operators are required to verify the age of players before allowing participation in sports betting or lottery games.
Identification checks are mandatory to ensure compliance with age restrictions and to prevent underage gambling. Operators must request and verify official identification documents before account creation or ticket purchase.
Prohibited Gambling Activities and Game Restrictions
Only sports betting and lottery games are permitted under Ethiopian law. All other forms of gambling, including online casino games, poker, bingo, and slot machines, are explicitly prohibited and not subject to licensing.
Online casino gaming is not regulated; there is no licensing scheme for such activities, making them effectively prohibited within the country.
Foreign companies are barred from directly operating gambling businesses for consumers; only Ethiopians may hold licenses for sports betting and lottery operations.
Unlicensed gambling activities, including unauthorized betting shops and online gambling platforms, are subject to enforcement actions and can be suspended or shut down by authorities.
Advertising and Marketing Limitations
Advertising and promotional activities for gambling are subject to strict oversight to prevent targeting minors and vulnerable groups.
Operators are prohibited from advertising gambling services in a manner that appeals to children, young people, or suggests gambling is a solution to financial or personal problems.
Marketing communications must include clear messages about the legal age for participation and responsible gambling.
Authorities may suspend or revoke licenses of operators who breach advertising standards or promote unlicensed gambling activities.
Responsible Gambling Requirements and Player Protection Measures
Operators must implement measures to promote responsible gambling and protect players from gambling-related harm, with particular attention to the country’s large youth population.
Information about the risks of gambling, as well as resources for problem gambling support, must be made available at gambling venues and through operator communications.
Operators are expected to monitor player behavior for signs of problem gambling and intervene where necessary, including offering self-exclusion options and support referrals.
The National Lottery Authority has the authority to suspend or close operations that fail to protect players or contribute to social harm.
Geographic and Location Restrictions for Gambling Venues
Licensed gambling venues, such as betting shops and lottery outlets, must be located in approved areas and comply with physical location guidelines set by the National Lottery Authority.
Local authorities may impose additional restrictions or bans on gambling venues in certain regions or cities, such as temporary or permanent bans in major cities to address social concerns.
Operators must provide proof of compliant office or venue locations as part of the licensing and ongoing regulatory process.
Gambling Regulatory Consultation
Get expert advice on gambling regulations and operational requirements
Timeline
Year/Date
Event
1961
National Lottery Administration (NLA) is established, marking the first formal state involvement in regulating lottery and gambling activities in Ethiopia.
2007
National Lottery Administration Re-establishment Proclamation No. 535/2007 is enacted, providing a modern legal foundation for the NLA and its regulatory powers over gambling and lottery activities.
2009
National Lottery Administration Re-Establishment Council of Ministers Regulation No. 160/2009 is issued, further defining the NLA’s authority and introducing a framework for regulating sports betting lotteries and other gambling activities.
2012
Sports betting is formally legalized in Ethiopia, allowing licensed operators to offer sports betting services under NLA supervision.
September 2021
Sports-Betting Lottery Directive No. 172/2021 comes into effect, introducing detailed sector-specific rules for sports betting, including licensing requirements, fees, and social responsibility contributions.
2023–2024
Authorities intensify enforcement against illegal betting shops, particularly in Addis Ababa, resulting in the closure of thousands of betting establishments to address social concerns and regulatory compliance.
2024–2025
Ongoing regulatory debates and enforcement actions, including proposed bans on sports betting by the Ministry of Women and Social Affairs, highlight increasing government scrutiny and efforts to address the social impact of gambling.
Requirements
Software Certification and Technical Standards
There are currently no explicit, publicly available technical standards or software certification requirements for gambling operators in Ethiopia. The regulatory focus is on sports betting and lottery products, with no specific framework for online casino gaming or technical certification of gaming software.
Operators are expected to use technology that allows the National Lottery Administration (NLA) to supervise and monitor operations, and there are plans to introduce a central electronic management monitoring system to enhance regulatory oversight. However, detailed technical protocols or certification requirements have not been published.
Foreign technology providers may supply software and services to locally licensed operators, but the technical compliance standards for such integrations are not formally codified in public regulations.
Data Protection, Privacy Measures, and Server Location
Ethiopia does not have a dedicated personal data protection law. The right to privacy is recognized in the Constitution and supported by general provisions in the Criminal Code, Civil Code, and sectoral laws (such as the Computer Crime Proclamation and Electronic Signature Proclamation).
No specific requirements exist for the physical location of gambling operators’ servers. There are also no sector-specific mandates for encryption, data segregation, or data residency for gambling operators.
Operators are expected to take reasonable steps to protect customer information under general privacy and security obligations, but there is no centralized data protection regulator or harmonized standard for the gambling sector.
Anti-Money Laundering (AML) and Know Your Customer (KYC) Procedures
Operators must comply with general anti-money laundering obligations as set out by the Financial Intelligence Center and relevant national laws.
There are no detailed, sector-specific AML or KYC technical standards published for gambling operators. However, operators are expected to verify the identity and age of customers, particularly to prevent underage gambling (minimum age is 21 for betting shops).
Operators should implement basic customer due diligence, transaction monitoring, and suspicious activity reporting in line with Ethiopia’s general AML legal framework.
Financial Reporting, Auditing Standards, and Record-Keeping
Operators are required to provide regular financial reports to the National Lottery Administration, including monthly commission and revenue statements.
There is a requirement to allocate specific percentages of ticket revenue and winnings to the NLA and for social contributions, which must be documented and reported.
Operators must maintain accurate records of all transactions, bets, and payouts for audit and inspection purposes. The retention period and format for such records are not explicitly detailed in public regulations.
There are no published, sector-specific technical standards for financial reporting software or mandatory third-party audits, but operators are expected to comply with general accounting and auditing standards applicable to Ethiopian businesses.
Technical Implementation Requirements for Responsible Gambling Tools
Responsible gambling is an area of increasing regulatory attention, particularly due to concerns over youth gambling and addiction.
Operators are expected to implement measures to prevent underage participation (minimum age 21), including age verification at betting shops and online platforms.
No specific technical requirements for self-exclusion, deposit limits, or player protection tools have been formally codified. However, the NLA has expressed intentions to strengthen oversight and may introduce further technical requirements as part of its planned electronic management monitoring system.
Operators must display responsible gambling information and comply with any directives issued by the NLA regarding player protection and social responsibility.
Sources
Legislation Resources
Federal Laws of Ethiopia Database – Official legislative database for all Ethiopian laws (search for "lottery" or "gambling" for relevant acts and proclamations)
Navigate Gambling Regulations Successfully
Professional guidance on regulatory compliance for gambling operations
Gambling regulations are subject to change. The information provided on this page was accurate at the time of publication, but may not reflect the current regulatory landscape. Always consult official sources for the most up-to-date information before making any gambling-related decisions.
