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For months, residents of Ethiopia’s capital have been unable to place bets at traditional bookmakers. This is because authorities in Addis Ababa have enforced a strict ban on all gambling establishments within city limits. The move has effectively pushed bettors toward online platforms such as 1xBet Ethiopia, which continue to operate legally under national licenses.
Consequently, the closure of land-based betting shops did not happen overnight. The city had already begun restricting physical betting locations, with some still managing to operate. However, the latest decision imposes a complete ban, leaving no exceptions. This raises a key question: could Addis Ababa’s firm stance inspire similar restrictions in other Ethiopian cities? For now, a nationwide ban seems unlikely.
Reasons Behind the Betting Ban in Addis Ababa
City officials justified the decision by highlighting concerns over social harm. Authorities claim that gambling has contributed to increased crime rates, including thefts and robberies, while also exacerbating family disputes. Protecting young people from the negative effects of betting was cited as a primary motive, but not everyone supports this viewpoint.
The National Lottery Authority (NLA), Ethiopia’s gambling regulator, has openly criticised the ban, arguing that it deprives the country of substantial revenue. Before the restriction, thousands of betting shops in Addis Ababa generated millions of Ethiopian birr (ETB) in tax contributions. The closure has reduced government income and left many employees jobless.
Critics also question the measure’s effectiveness. While physical betting shops have disappeared, online alternatives remain easily accessible. Platforms like 1xBet allow players to continue betting seamlessly, raising doubts about whether the ban addresses gambling-related concerns.
Government Response and Future Plans
Despite objections, Addis Ababa’s administration remains firm. A city representative emphasised that addressing social problems takes precedence over financial concerns. Since betting shops are seen as a source of societal harm, reopening them is not under consideration.
Officials claim they are actively helping displaced workers find new employment opportunities. Property owners previously renting out spaces to bookmakers have reportedly been offered alternative tenants. Authorities insist they manage the transition effectively, though the long-term impact remains uncertain.
Ethiopia’s Gambling Industry: Legal Framework and Licensing
While Addis Ababa has banned betting shops, Ethiopia’s gambling sector remains subject to national regulations. The NLA oversees legal betting activities, ensuring compliance with licensing requirements and tax obligations. Licensed operators contribute significant funds to state coffers, with monthly tax payments reaching tens of millions of ETB.
The licensing process in Ethiopia is stringent. Only betting shops and lottery organisers can obtain permits, as other forms of gambling remain illegal. To secure a license, applicants must:
- Submit a business proposal detailing operations;
- Provide proof of a compliant office space;
- Pay a licensing fee of 500,000 ETB;
- Offer a bank guarantee of 1,500,000 ETB.
Once approved, operators have 60 days to establish their platforms. However, Ethiopia prohibits foreign companies from directly engaging in gambling activities. Instead, international firms can participate as service providers, offering technology and gaming solutions to local operators.
Challenges and Reforms in Ethiopia’s Betting Industry
Market participants have called for reforms in Ethiopia’s gambling tax system. The current policy, implemented by the Ministry of Revenue, imposes a 15% tax on operators’ turnover. This approach discourages industry growth, as it treats all revenues equally without accounting for expenses or winnings.
To address these concerns, the NLA explores alternative taxation models, including Gross Gaming Revenue (GGR) or Net Gaming Revenue (NGR)-based taxation. Additionally, the regulator aims to develop a unified electronic system for centralised monitoring and oversight of gambling activities. These initiatives seek to create a more transparent and consumer-friendly betting environment.
The organisation’s leadership emphasises the need for industry modernisation, with the goal of making Ethiopia’s gambling sector more structured and transparent.
Source: E-play Africa
