Companies operating within Ethiopia's sports betting and lottery sector handled a staggering 199 billion Birr over a four-year period, according to an independent audit conducted by the National Lottery Service.
The findings reveal that financial flows within the industry experienced exponential growth. While activity stood at 4.7 billion Birr across the 12 months of 2015, the volume surged dramatically to reach 20 billion Birr in September 2018 alone representing a fourfold increase compared to the sector's entire first year.
The draft audit report covers the period from July 2015, when the operators initially obtained their licenses, through December 30, 2018, when their operating licenses were suspended.
The investigation established that licensed operators consistently failed to fulfill their legal obligations concerning commissions, penalties, license renewals, and registration fees.
Beza Girma, Director General of the National Lottery Administration, confirmed the authenticity of the audit data in a statement to Fana Media Corporation, noting that the comprehensive review was initiated to establish an evidence-based understanding of the sector and steer upcoming reforms.
The Director General pointed out that out of the 30 billion Birr owed to the government in commissions alone over the four-year span, operators paid a mere 3.6 billion Birr, leaving a massive revenue deficit.
Despite a government directive issued in December of last year that suspended sports betting operations and revoked active licenses, the audit highlights that unauthorized betting activities have continued through illicit channels.
The National Lottery Service stated that upon receiving the final audit report, it will coordinate with relevant government bodies to recover unpaid funds and take strict legal action against ongoing irregularities.
Furthermore, following a separate intelligence investigation by the National Intelligence and Security Service (NISS) that uncovered over 100 billion Birr in concealed revenue linked to contractual breaches and permit revocations, sports betting licenses were formally canceled.
Unfulfilled contractual performance terms have also led to the termination of public-private partnership agreements concerning digital lotteries.
Emphasizing that the primary government objectives are safeguarding state revenues, protecting player rights, and instilling transparency and accountability, the Director General confirmed that preparations are underway to relaunch sports betting and digital lottery services under rigorous regulatory oversight and modern technological frameworks.
