Big Blow to Betika as Ethiopia Halts Operations Over Fraud Allegations

Ethiopia Suspends Betika Over Alleged Multi-Billion Shilling Tax Fraud

Ethiopian authorities have suspended operations of the Kenyan betting company Betika following serious allegations of massive tax fraud amounting to over KSh 83.5 billion.

The suspension comes after Ethiopian regulators raised concerns that the betting firm failed to remit huge amounts of tax revenue to the government. Officials say early investigations point to deliberate underpayment of taxes and manipulation of financial records.

The Ethiopian government says the decision was made as investigations continue into what is being described as a large-scale financial fraud scheme within the betting industry.

The crackdown is being led by several agencies, including the National Intelligence and Security Service (NISS) and the Ethiopian Federal Police, alongside other financial and security bodies.

Authorities confirmed that Betika’s licence, together with those of 21 other betting companies, has been suspended until a full audit and criminal investigation are completed.

Over 22 Betting Firms Affected

According to the Ethiopian Lottery Service (ELS), a total of 22 sports betting operators were found to have allegedly hidden revenue that should have been paid to the government.

In a statement, the regulator said the licences were suspended under existing betting and lottery laws to protect public funds and strengthen oversight in the fast-growing digital betting sector.

ELS further revealed that suspects linked to the betting firms have already been arrested, following coordinated operations involving federal police, intelligence services, and city security teams from Addis Ababa and Dire Dawa.

Ethiopia Tightens Control on Betting Sector

Ethiopian officials said the move is part of a broader plan to seal tax loopholes, improve transparency, and ensure betting companies fully comply with national financial regulations.

The government added that betting firms will only be allowed to resume operations after meeting strict compliance and audit requirements.

Betika Also Faces Complaints in Kenya

The suspension in Ethiopia comes at a time when Betika is facing growing criticism in Kenya, with many users complaining about delayed or failed withdrawals.

Several Kenyan punters have taken to social media and review platforms claiming their winnings did not reflect in their accounts or that withdrawal requests were rejected without clear explanations.

Others allege that money disappeared from their betting wallets, while customer support responses were either slow or failed to resolve the issues.