Ethiopian authorities have arrested 24 people connected to sports-betting companies that are accused of hiding more than 100 billion birr in government revenue, according to the National Intelligence and Security Service (NISS).
NISS said it had been watching betting companies and payment providers, including fintech and aggregator firms, over suspected illegal activities. Investigators found that unlicensed operators, companies with canceled licenses, and some individuals were running betting services using international internet connections.
A joint operation by NISS, the Financial Security Service, the Federal Police, and other security forces in Addis Ababa and Dire Dawa led to the arrests. Some licensed companies reportedly abandoned their offices when authorities tried to check on them.
NISS said these betting companies, working with local fintech firms, hid over 100 billion birr by not paying taxes. They allegedly converted earnings into foreign currency using cryptocurrencies and international hawala networks.
The agency also said some licensed payment providers reported less income than actual earnings, citing client confidentiality. Foreign nationals were reportedly running some operations from abroad through local partners. The use of foreign software and lack of fixed business addresses made supervision difficult.
NISS asked the public to report any suspicious activities to the authorities.
Source: Birrmetrics
