In a detailed report, Betrush, a global betting analysis and tipster platform providing commentary and market insights<\/strong> across regulated and emerging gaming markets, described the government\u2019s new tax<\/strong> structure as having \u201clayered implications<\/strong>\u201d.<\/p>\n\n\n\n The taxes were introduced on July 17 2025 under Proclamation No. 1395\/2025<\/strong>. The amendment includes gaming-winnings tax increases, with withholding tax on lotteries, prize draws and sports bets rising from around 15 per cent<\/strong> to between 20 and 25 per cent<\/strong>. Licensed operators<\/strong> continue to face a turnover tax of roughly 15 per cent on total stakes or sales.<\/p>\n\n\n\n Betrush notes that this double squeeze<\/strong> could discourage participation and put smaller and mid-sized betting firms under pressure. \u201cThe game has changed\u201d, the platform says, emphasising that operators will need to adapt their business models<\/strong> and promotional strategies to survive. Smaller operators<\/strong> may face consolidation or exit, while larger firms with scale and compliance infrastructure could deepen their footprint.<\/p>\n\n\n\n For players, fewer net payouts and thinner promotional offers could make regulated<\/strong> platforms less appealling<\/strong>. Betrush added: \u201cSome market observers warn this may catalyse migration<\/strong> to offshore<\/strong> or unlicensed platforms offering \u2018better\u2019 promotional value.\u201d<\/p>\n\n\n\n The government frames the changes as part of a broader plan <\/strong>to boost public revenue and moderate potential gambling-related harms. Ethiopia\u2019s betting market is among Africa\u2019s fastest-growing, supported by a population of more than 134 million<\/strong>, nearly half under 20, with rapidly expanding mobile<\/strong> and internet access.<\/p>\n\n\n\n Regionally, Ethiopia\u2019s new rates align with peers such as Kenya<\/strong>, which taxes winnings at around 20 percent with a 15 percent operator revenue tax, and South Africa, which imposes provincial winnings taxes of 6-15 percent plus a gross gaming revenue levy. While the rates are comparable<\/strong>, structural and regulatory contexts differ across countries.<\/p>\n\n\n\n The wider African gaming industry<\/strong> is also heating up, valued at $2.16bn in 2024 and projected to reach $10.81bn by 2033<\/strong>. Ethiopia is expected to play an outsized role in this growth.<\/p>\n\n\n\n As Ethiopia tightens its tax grip, the industry faces a critical test<\/strong>, with operators needing to adapt <\/strong>quickly to maintain player engagement<\/strong> or risk bettors migrating to unregulated alternatives. Betrush concludes that the winners will be those who read the new rules and move swiftly. <\/p>\n\n\nEthiopia\u2019s betting market faces tax test<\/h2>\n\n\n\n
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