When it comes to the African gambling market, most people immediately think of South Africa, Nigeria, or Kenya—countries that are well-known hotspots in the industry. But beyond these bustling main stages, there are underestimated markets quietly gathering momentum, waiting to be discovered. Ethiopia is one such dark horse with huge potential. Although Ethiopia’s overall economy might not be particularly prominent, it's an East African country with over 130 million people. With its long history and rich cultural heritage, Ethiopia is now undergoing a silent transformation in the iGaming space. What makes this market stand out? iGaming is currently legal in Ethiopia. With a growing population, a surge in mobile internet usage, and a young generation passionate about football and other sports, the country is catching the attention of more and more international gambling companies. Of course, like all emerging gambling markets, Ethiopia faces several challenges—regulations are still evolving, payment systems are developing, and local operations come with their own complexities. But for gambling companies that are willing to commit and dig deep, Ethiopia may just be the early-bird opportunity in Africa’s next iGaming blue ocean. Today, TC-Gaming White Label is here to break down the Ethiopian gambling market for all you industry insiders. Let’s take a closer look and find out—does the Ethiopian gambling scene have what it takes?

Ethiopia Overview

Where is Ethiopia?

Kyrgyzstan is a landlocked country in Central Asia. It borders China (Xinjiang province) to the east, Kazakhstan to the north, Uzbekistan to the west, and Tajikistan to the south. It's a textbook case of a "landlocked nation," surrounded by powerful neighbors.

Ethiopia's Population and Per Capita Income

Ethiopia is the second most populous country in Africa, following Nigeria, with a total population exceeding 130 million as of 2025. The majority of its population is young, with over 70% under the age of 30. This “demographic dividend” gives Ethiopia significant potential in the digital economy and entertainment industries.

From an economic standpoint, however, Ethiopia is still considered a low-income country. According to World Bank data, the country's per capita GDP was approximately USD 1,272 in 2023. While the figure remains low, Ethiopia has seen some of the fastest economic growth rates in Africa in recent years, particularly in agriculture, infrastructure, and financial technology. These developments have created a foundational environment for the growth of the iGaming industry. For iGaming operators looking to invest in the long-term market, Ethiopia’s population structure and growth potential may be far more attractive than its current per capita income.

Ethiopia’s Religion, Culture, and Language

Roughly 44% of Ethiopia's population adheres to the Ethiopian Orthodox Tewahedo Church (Eastern Orthodox). Islam also has deep roots in the country, with around 34% of the population identifying as Muslim, primarily located in the eastern and southern regions. Additionally, there are communities practicing Protestantism, Catholicism, and indigenous traditional religions.

Culturally, Ethiopia is unique as the only African country that was never formally colonized by a European power. This has allowed it to preserve an independent social structure and traditional values. Religious festivals, ethnic clothing, music and dance, and culinary customs all retain distinct local characteristics. Therefore, for iGaming operators aiming for localized engagement, game types and promotional styles will need to be carefully adapted to local preferences.

Amharic is Ethiopia’s official language, but the country is highly multilingual, with over 80 languages and more than 200 dialects spoken nationwide. Oromo and Tigrinya are among the other major languages. While English is used in some educational and business contexts, multilingual support is crucial for successfully engaging local users in Ethiopia’s iGaming market.

Current State of Internet in Ethiopia (2025)

As Africa's digital transformation continues to advance, Ethiopia, although a late starter, is steadily making progress. Despite still being in its early stages with relatively low penetration rates, the country is experiencing consistent growth in mobile connectivity, internet adoption, and social media usage. For iGaming companies eyeing the Ethiopian market, early investment in digital channels, optimizing the mobile experience, and integrating local culture and language will be key strategies in capturing the attention and loyalty of Ethiopian iGaming users.

Population Overview (Early 2025)

• Total Population: Approximately 134 million
• Annual Growth Rate: +2.6% (an increase of 3.4 million people year-over-year)
• Urbanization: 23.9% live in urban areas, while 76.1% still reside in rural regions
• Median Age: Just 19.1 years, reflecting a significantly young population structure

Mobile Connectivity in Montenegro

• Active Mobile Connections: 85.4 million, representing 63.8% of the total population
• Year-over-Year Growth: +10.9% (8.4 million new connections)
• Broadband-Level Connectivity: Reaches up to 98.2% coverage across 3G, 4G, and 5G networks

Internet Usage Data

• Total Internet Users: 28.6 million
• Internet Penetration Rate: 21.3%
• Year-over-Year Growth: +4.3% (1.2 million new users)
• Unconnected Population: Approximately 105 million, or 78.7% of the total population

Social Media Usage

• Active Social Media Users: 8.3 million
• Penetration: 6.2% of the total population and 29.1% of internet users
• Year-over-Year Growth: +17.7% (1.3 million new users)
• Gender Distribution: 67.7% male, 32.3% female

Number of social media users in Ethiopia by platform (early 2025):

Fixed Broadband Network Speed

• Median Fixed Broadband Download Speed: 9.01 Mbps
• Year-on-Year Growth: +16.7%

Current State of Gambling in Ethiopia

Legalization Progress of Gambling in Ethiopia

As the wave of gambling legalization continues to sweep across Africa, Ethiopia has also taken significant steps in developing its gambling policies. In 2012, the Ethiopian government officially legalized sports betting and allowed nationwide lottery operations. Additionally, physical casinos have been established in the capital, Addis Ababa. However, iGaming (such as slots, roulette, baccarat, etc.) remains in a legal "grey area."

Legally Permitted Forms of Gambling in Ethiopia:

1. Sports betting (both offline and iGaming)
2. Lottery
3. Land-based casino games

These gambling services can be legally offered through licensed local operators.

Unregulated Forms of Gambling in Ethiopia:

• iGaming casino gambling (e.g., slots, roulette, baccarat)
• At present, Ethiopia has not established a licensing system or relevant regulations for iGaming casinos. As a result, this sector remains in a legal vacuum. Due to this lack of regulation, local players often turn to overseas iGaming platforms to fulfill their needs.

Ethiopia's Gambling Regulatory and Licensing Policies

In Ethiopia, the gambling industry is regulated by the National Lottery Administration (NLA), which operates under the Ministry of Finance and Economic Development. The NLA is responsible for drafting laws, issuing and revoking licenses, and overseeing the operation of the gambling market.

Legal Framework: Two Core Regulatory Documents

Ethiopia's gambling business is primarily governed by two key legal documents. Only traditional forms of gambling such as sports betting and lottery are currently allowed under the law.

1. National Lottery Administration Re-Establishment Council of Ministers Regulation (2009)
2. Sports-Betting Lottery Directive No. 172/2021

iGaming Remains a Regulatory Blind Spot

While Addis Ababa hosts physical casinos, Ethiopia has not yet created a legal framework or licensing system for iGaming. Therefore, no licenses are currently issued for iGaming operations.

Gambling License Fees and Taxation in Ethiopia

• Initial Licensing Fee: 500,000 Ethiopian birr (approximately €3,446)
• Renewal Fee: 100,000 Ethiopian birr
• Tax and profit sharing requirements:
  • Pay 15% of ticket revenue to the National Lottery Bureau as commission (i.e. turnover tax)
  • 15% of player winnings are also paid to the NLA
  • 0.5%** of total revenue goes to social welfare, up from 20% previously.

How to Apply for a Gambling License in Ethiopia: Process and Requirements

To legally operate a gambling business in Ethiopia, the applicant must have at least one Ethiopian co-founder. However, this requirement does not apply to foreign white label iGaming software providers (B2B).

Application Requirements:

• Establish a registered company
• Obtain and register a business license
• Acquire a Tax Identification Number (TIN Certificate)

Official Application Process:

1. Submit a detailed business operation plan
2. Provide proof of office premises that meet the National Lottery Administration (NLA) standards
3. Bank guarantee for EZR 1.5 million
4. Pay 500,000 Eth license fee
5. After approval, operation must begin within 2 months

Ethiopian iGaming Player Profile and Betting Preferences (Simplified)

In the African iGaming market, Ethiopia is steadily rising to match the popularity of countries like Kenya and Nigeria—especially in the field of sports betting. Although Ethiopia has relatively low per capita income, the country’s large young population, passionate love for sports, and rapid adoption of digital entertainment make it a highly attractive user base for iGaming platforms. With the right mix of local sports engagement, optimized mobile experiences, and marketing tailored to local languages and culture, Ethiopia stands out as a high-potential frontier in Africa’s growing iGaming landscape.

Ethiopian Players’ Preferences: Football is King

Just like in many other African countries, football reigns supreme among Ethiopian iGaming players.

Top tournaments frequently wagered on by local players include:

• Ethiopian Premier League
• English Premier League
• La Liga
• UEFA Champions League
• FIFA World Cup
• African Cup of Nations

These international and regional events not only enjoy high viewership but also drive significant betting activity. During major tournaments, betting volumes often see a surge in traffic and user engagement.

Athletics Tied to National Pride

In addition to football, track and field, especially middle and long-distance running events, also attract much attention, especially during the Olympic Games, when national pride becomes an important factor driving betting. Ethiopia has always been a traditional powerhouse in marathons and 5,000-meter races, and many players will bet on their own athletes. In addition, tennis and cricket also have a certain player base, but their popularity is still far less than that of football.

Player Demographics: Young and Growing

• Total population: ~130 million
• Working-age group (15-64 years): Around 58%
• Median age: Just 19 years old!

Localized Promotion Channels

For international or new iGaming platforms entering Ethiopia, localized marketing is essential to gaining traction. The most effective current strategies include:

1. Facebook Marketing
2. TikTok short video spread
3. Telegram community operation
4. Affiliate Marketing

Opportunities and Challenges in the Ethiopian Gambling Market

The Ethiopian gambling market is entering a critical "window period" where opportunities and challenges are intertwined. Whoever can quickly build local brand awareness, tap into the passion for sports to engage users, and leverage mobile payments and social channels for conversion will be able to secure a foothold in this emerging market. Overall, while the entry barrier to Ethiopia’s gambling market is relatively low, winning the hearts of users is much more difficult. Taking the right first steps is key to unlocking long-term growth potential.

Opportunities in the Ethiopian Gambling Market

High Growth Potential for Early Movers

The Ethiopian gambling market is still in its early stages, with no dominant players yet established. This offers an excellent window for early entrants to educate users, gain brand exposure, and build loyalty. Compared to more mature markets like Kenya and Nigeria, Ethiopia is more like a blank canvas awaiting innovation.

Sports Craze Drives Organic Traffic

Football is a “spiritual necessity” for Ethiopian players. From the local premier league to the English Premier League and Champions League, the games themselves serve as natural traffic magnets. Additionally, during the Olympics, track and field events stir strong betting sentiments—especially when national pride is involved, triggering surges in user engagement.

Competition Not Yet Saturated

Although some local gambling operators are already present, the market hasn’t seen the emergence of any dominant brands. This gives new iGaming platforms room to enter and position themselves with unique value propositions.

Challenges in the Ethiopian Gambling Market

Ambiguous Regulations, iGaming Lacks Licensing

While sports betting and lotteries are legally permitted, iGaming still lacks clear regulations and a formal licensing system. As a result, the sector operates in a legal grey area, hindering local market development and driving some users to offshore platforms. Moreover, Ethiopia’s tax system, which imposes a 15% gross turnover tax, can significantly increase operational costs. On the flip side, this creates more maneuvering space for offshore iGaming companies.

Limited Internet Access Hinders User Reach

Although mobile adoption is growing, internet penetration remains below 25%. This limits the base of reachable iGaming users. However, with a population of 130 million, even a small percentage still represents a large user base. Mobile payment systems are paving the way to solve this issue. Services like Ethio Telecom's Telebirr and Safaricom's M-Pesa already serve tens of millions of users. For example, 56 out of every 100 people have a mobile phone, and 46% of adults over 25 have an account with a financial institution or mobile money provider—providing a strong foundation for gambling-related payments.

Cultural Pushback and Divided Public Opinion

In 2022, the Ministry of Women and Social Affairs in Ethiopia attempted to push for a complete ban on sports gambling, citing concerns about gambling addiction. However, the National Lottery Administration (NLA) firmly opposed the move, arguing that a distinction should be made between licensed operators and illegal gambling activities. As a result, public acceptance of gambling remains a point of contention.

Summary

Ethiopia's gambling market is not illegal and is gradually moving towards legalization and structured growth. Currently, sports betting (both retail and iGaming), lotteries, and land-based casinos are all operating legally within the regulatory framework. Among them, iGaming lottery platforms have become one of the most popular forms of gambling in the country. Although there are no explicit laws regulating iGaming and no licenses are being issued at this stage, this gap actually presents a “window of opportunity” between market demand and policy clarity.

For gambling operators, those who can patiently cultivate the market, legally operate sports betting and lottery-related businesses, gradually build local brand recognition, and stay closely attuned to regulatory developments, will be in a strong position to seize the first-mover advantage when iGaming licenses are eventually introduced.

However, entering the Ethiopian gambling market is not without its barriers. Operators are required to meet several conditions, including:

1. Registering a company and obtaining a trade license and Tax Identification Number (TIN);
2. Submitting a complete business plan;
3. Providing a compliant office location;
4. Paying a license fee of 500,000 Ethiopian birr;
5. Submitting a bank guarantee of 1.5 million Ethiopian birr;
6. Starting operations within two months of license approval.

From a macro perspective, Ethiopia’s gambling market still faces challenges such as regulatory ambiguity, relatively low internet penetration, conservative cultural attitudes, and a heavy tax burden. However, with a population of over 130 million, more than 70% of whom are young, the rapid growth of mobile payments, limited domestic competition, and a nationwide passion for sports—these factors suggest that Ethiopia may not be the most mature gambling market, but it is undoubtedly one of the most promising markets for early entry.

TC-Gaming White Label has always focused on global gambling industry trends, especially the legalization process and localized development of emerging African gambling markets. We believe that although Ethiopia still has legal "grey zones," it is undergoing a transition from regulatory chaos to clarity. For operators with localization capabilities and compliance experience, this is not just a challenge—it’s a historic entry window.

If you are looking for a gateway into the African gambling market and want to capture early-stage dividends in a promising blue ocean market, Ethiopia might just be your next destination. TC-Gaming also welcomes all types of gambling project owners, platform operators, and system providers to connect with us. We are here to offer you the most up-to-date insights into African markets, the most practical solutions, and the most flexible localized support for your iGaming business.