Over the last two years sports betting has expanded rapidly in Ethiopia. The speedy expansionrnhas sparked controversies among stakeholders. The media is reporting that the business isrnfostering addiction and drawing minors. The Ministry of Women, Children and Youth is alsornlobbying to make the business banned legally claiming it is a harmful gambling practice. ThernNational lottery Administration (NLA), the regulator of the sector, however, has been arguingrnthat sports betting is no gambling and is conducted under its regulation on a license base. Thisrnthesis presents an analysis of the Ethiopian legal and institutional framework governing thernregulation of sports betting and the general objective is to evaluate its adequacy to prevent orrnmanage the potential vices of the business. The study particularly asks whether the legalrnframework adequately protects minors and whether it has sufficient rules to prevent addictionrnand money laundering. The analysis is mainly based on a review of literature, globallyrnrecommended best practices, and countriesâ€™ experiences. The paper argues that sports betting isrna pure commercial gambling service, and with all its positive contribution in terms of revenuernand job creation, it also has all the potential to result in serious social and economical crisesrnunless it is properly regulated. The analysis on the issue proved that the existing legal frameworkrnin Ethiopia has many gaps and is insufficient to effectively prevent the possible side impacts ofrnsports betting. And the current regulatory institution lacks the appropriate structure,rnindependence, and sufficient powers and responsibilities. On this base, the study recommended arncomprehensive policy; legal and institutional reform that enhance the overall regulatoryrnframework and will help to resolve the specific problems identified in the paper.