Ethiopia is located in northeastern Africa, bordering Djibouti and Somalia to the east, Sudan and South Sudan to the west, Kenya to the south, and Eritrea to the north. It is also a nation where the handling of gambling specifically on sports has gone through a number of changes within the years. This article will therefore describe the various Ethiopia bookmakers, sports betting laws and regulations in Ethiopia, licensing requirements and the effects of these laws on the betting industry.
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Table of Contents
Summary of Key Events
History of Gambling Laws in Ethiopia
Below is the list of timeline of some of the major legislation:
- 1953: The first of the national lottery proclamations was issued legalizing lottery under government control.
- 1961: Proclamation number 183 allowed gambling games, thus, the birth of National Lottery Administration (NLA).
- 1981: The NLA was transformed to be the gambling regulator and supervisor of all gambling business as well as the manager of the national lottery.
- 2007: The National Lottery Administration Re-establishment Proclamation No. 535/2007 was enacted to permit the private sector in the functioning of lottery.
- 2009: The National Lottery Administration Re-Establishment Council of Ministers Regulation 2009 was introduced allowing sports-betting lotteries.
- 2021: The Sports-Betting Lottery Directive No. 172/2021 took effect, which provided new rules of the sector particularly applicable to sports betting.
Gambling laws and regulations for bookmakers
The regulation of the gambling business in Ethiopia is based on two primary legal acts – the National Lottery Administration Re-establishment Proclamation No. 535/2007 and the National Lottery Services (NLS) Re-establishment Councils of Ministers Regulation No. 160/2009. These laws alongside the relatively recent Sports-Betting Lottery Directive No. 172/2021 give a roadmap on how gambling activities shall be conducted in the country.
The important provisions of the Gambling Law are as stated below:
- Lottery Definition: As set out in Article 2(1) of the proclamation: “Lottery” shall mean any game or activity the outcome of which depends on chance. This covers tombola, raffle, lotto, toto, instant lottery, number lottery, multiple prize lottery, promotional lottery, bingo, and sports betting lottery.
- Licensing and Regulation: The NLA has the responsibility of regulating gambling activities and at the same issuing out licenses as required by the laws. This entails allowing permit for sports-betting lotteries, tombola, raffles, bingo (conventional), and promotional lotteries.
- Social Contributions: A certain percentage of revenue is expected to be channeled towards the provision of social development programs, thus illustrating the government’s vision that revenue from gambling should be used to enhance the society.
Regulatory of Ethiopia Bookmakers
The regulatory body for gambling in Ethiopia is the National Lottery Administration (NLA). It is responsible for:
- Granting of licenses to gambling establishments.
- The assignment of controlling the conduct of lottery activities.
- Compliance with the gambling laws and directives.
- Enabling social spending from the gambling funds.
Prohibited and Allowed Bets
While gambling is legal in Ethiopia, certain restrictions apply:
- Prohibited Bets: The laws do not allow any legal forms of gambling that does not have a permit from the NLA. This covers unlawful online betting and any betting that is conducted by international companies.
- Allowed Bets: The licensed activities are sports betting, lotteries, tombola, raffles, bingo, and promotional lotteries. Of all the types of betting, sports betting has especially expanded its market after the issuance of the 2021 directive.
Licenses and Fees
Obtaining a gambling license in Ethiopia involves several steps and fees:
- License Application: The following are required from the applicants; a business proposal, a bank statement reflecting the initial capital investment and a lease agreement of the shops.
- Fees: The license for sports betting is cost at Ethiopian Birr 500,000 and the renewal fee is at Ethiopian Birr 100,000. However, licensees are expected to fulfill the following; 1. Five million birr were also provided to the bank as a guarantee.
- Commission: It is mandatory for the licensees to give 15% of the entire ticket sale as well as 15% of the prize money of the gambling games to the NLA every month.
- Social Contributions: The licensees are required to set aside 0. 20% of their overall sales for social corporate responsibilities.
Bookmakers Gambling Taxes
Gambling taxes in Ethiopia are as follows:
- Gambling Tax: This is from 20 percent of the gross gambling revenue.
- Online Gambling Tax: 20% of gross gambling yield (however, online gambling is still mostly not regulated, the existing licenses are sufficient for the online sports betting).
- Corporate Tax: To the gambling taxes, the general corporate tax rate of 30% is also imposed to the entities.
- Player Winnings Tax: Fifteen percent of each winning is taken as “lottery income tax” from the players’ winnings though for winnings below one hundred Birr the tax is not taken.
Sports Betting in Ethiopia
Sporting activities betting can be said to be the biggest and the fastest growing sector of the gambling business in Ethiopia. The Sports-Betting Lottery Directive No. 172/2021 has therefore legalized the sector, setting out the rules and the regulations.
Sporting Event Glory Milestones
Ethiopia has a rich history in athletics and other sports, contributing to the popularity of sports betting:
- 1962: The Ethiopian national football team also known as the Walyia Antelopes emerged champions of the African Cup of Nations.
- 2013: The Ethiopian national team has recently secured its place in the Africa Cup of Nations for the first time in thirty one years.
- 1956: It is the first time Ethiopia takes part in the Summer Olympic Games.
- 2006: The Winter Olympic Games performance of Ethiopia for the first time.
- 2012: Thus, Ethiopia got 45 Olympic medals in total, mainly in athletics.
Conclusion
The process of regulating gambling in Ethiopia especially sports betting shows the country’s struggle in balancing the economic gains of the activity and the social impacts. Ethiopia has a sound legal system and a very active regulatory authority, and it is still expanding its gambling sector but at the same time protecting its people.
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