Ethiopia Gaming Regulatory Framework Overview with Desse Dejene, National Lottery Authority Director
Desse Dejene, Director of the National Lottery Authority (NLA) in Ethiopia, discussed the regulatory framework for licensing gaming activities in the country. According to Dejene, the NLA currently only issues licenses for sports betting and lottery games, as other forms of gambling are prohibited.
“We only issue licenses for sports betting and lottery games. By law, these businesses are strictly restricted to Ethiopians,” he stated. “Having the license for sports betting is restricted to local people only.”
However, foreign companies can only operate in Ethiopia as technology providers, game providers, or service providers within the gaming industry.
Dejene also expressed concerns about responsible gambling in Ethiopia, particularly given the country’s large youth population. “With a population of over 125 million people, over 70% of whom are young people, it’s crucial that we take strict measures to protect society from the problems associated with irresponsible gambling,” he said. This has led to the suspension of several illegal gambling activities in major cities across the country. Ethiopia Gaming Regulatory Framework
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To obtain a gaming license in Ethiopia, Dejene highlighted the following prerequisites: a trade license, license registration, a Tin Certificate, and officially forming a company before applying to the NLA. The authority will then issue a license to operators who fulfill these requirements.
The steps for applying for a license include:
a. Preparation of a business proposal
b. Proof of an office location that meets NLA gaming physical location guidelines
c. Payment of license fees
d. Bank guarantee of 1.5 million Ethiopian Birr ($26K)
e. Payment of license fee equivalent to 500,000 Ethiopian Birr ($8.7K)
Once approved, businesses will be required to start operations within 60 days.
Regarding taxation in the gaming sector, Dejene stated that the NLA only implements taxation policies set by the Ministry of Revenue. However, he noted that there are currently complaints about the 15% tax on turnover for gaming brands. He explained that this tax is aimed at discouraging more operators from entering the market and protecting society from the harmful impacts of gambling.
Dejene however stated that the NLA is currently reconsidering its taxation policy, taking into account the experiences of other countries in the region. “Most African countries calculate taxes on GGR or NGR basis. We are different from that, so now we are trying to reconsider this tax issue,” Dejene said.
He further emphasized the importance of technology in overseeing gaming operations in Ethiopia, as a regulator, and announced plans to introduce a central electronic management monitoring system to enhance their efforts in effectively governing the country’s gaming ecosystem.
