Ethiopia’s National Intelligence and Security Service (NISS) have announced the arrest of 24 sports-betting operators who are allegedly involved in embezzlement of more than 100 billion birr ($1.7 billion) of government revenue.
NISS in a statement on Thursday said it conducted an extensive investigation into both licensed and unlicensed betting companies, along with local financial technology firms—known as fintech aggregators-that facilitate digital payments for the industry.
It said the investigation proved that several operators had violated licensing revocation terms, and continued running betting platforms without any license using international internet networks to avoid domestic oversight.
The statement said a joint operation by NISS, the Financial Security Service, the Federal Police and security forces in Addis Ababa and Dire Dawa led to the arrests.
Authorities said several licensed operators had abandoned their registered premises when oversight attempts began.
According to NISS, betting companies, working with domestic fintech and aggregator firms, concealed transactions worth more than 100 billion birr ( $1.7 billion) by failing to declare or pay required taxes.
Earnings were allegedly converted into foreign currency through cryptocurrency platforms and international hawala networks, NISS said in a statement.
NISS said payment-system providers licensed by the National Bank of Ethiopia withheld or under-reported the financial activities of betting firms, citing client-confidentiality rules.
The agency added that foreign nationals were directing operations from abroad through powers of attorney issued to local partners, while using of foreign software and without a fixed business address.
MG/APA