Individuals in Bahir Dar city have been involved in sports betting and virtual games with the hope of winning money and as a form of leisure. As a result, it has an adverse socio-economic effect in the study area. However, the effects of the phenomenon of sports betting on society have not been well documented. The purpose of this research is to investigate the socioeconomic effects of sports betting on the society in Bahir Dar City in the Amhara Region of Ethiopia. To address the stated objectives, a qualitative approach with an ethnographic design was used. To select the informants, a purposive sampling method was employed. The data required for analysis were collected through in-depth interviews, key informant interviews, focus group discussions (FGDs), and observations. The data was then analyzed qualitatively using thematic analysis. The findings indicate that the primary drivers of sports betting among individuals in Bahir Dar City include monetary gains, entertainment, intellectual challenge, family freedom, peer pressure, and unemployment. The most significant positive effects identified are increased government revenue and personal income, job creation, perceived boredom avoidance, enhancement of personal IQ (Intelligence Quotient), and the formation of social bonds. Conversely, the major negative effects associated with sports betting include time wastage, job loss, property loss, drug addiction, crime, deterioration of family and interpersonal relationships, health and emotional crises, and loss of lives. While some individuals perceive sports betting as a source of income, others regard it as a form of gambling that fosters youth addiction and conflicts with societal values. In conclusion, while sports betting has some positive socio-economic effects, its negative impact is much more considerable.