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In a significant crackdown on financial crime, Ethiopian authorities have detained 24 individuals connected to sports-betting companies accused of concealing over Br100 billion in unreported income.
This extensive operation, led by the National Intelligence and Security Service (NISS) in collaboration with the Financial Security Service and federal police, marks one of the most comprehensive investigations in recent years.
After months of intelligence-gathering, security teams executed coordinated raids across various locations, including Addis Ababa and Dire Dawa. Officials report that those arrested are linked to a diverse group of entities, including companies that had lost their licenses and operators working without proper authorization.
Operators used crypto to hide the destination of funds
Investigators have uncovered that several firms involved in the scandal operated without permanent headquarters and frequently utilized foreign-hosted digital systems.
In some instances, these companies even closed their offices or abandoned locations to evade scrutiny.
The National Intelligence and Security Service (NISS) revealed that the group employed various tactics to conceal or suppress its revenue. These methods included deliberately underreporting betting turnover and relying on cryptocurrency transactions to obscure the origins and destinations of their funds.
They also utilized international hawala networks to transfer money outside of the formal banking system, complicating financial traces. Additionally, some operators collaborated with payment processors who allegedly misrepresented transaction volumes.
These strategies enabled the operators to divert substantial amounts of revenue that would otherwise be subject to taxation, contributing to their illegal activities.
The scale of the Br100 billion concealment has caused serious concerns in the government, and plans are now in motion to strengthen tax collection and reduce leakages in fast-growing sectors such as digital betting.
Source: iGaming Afrika
