Democratic Republic of Congo introduces stricter taxation for gambling and betting companies

The Ministry of Finance of the Democratic Republic of Congo (DRC) has introduced new tax measures aimed at gambling operators, including those in sports betting, casinos, lotteries, and related activities, according to an official communiqué released this Friday. These changes are part of the 2024 Finance Law, enacted on December 10, 2023.

Per the communiqué, taxes associated with the operating licenses of gambling companies, as well as taxes on players' winnings—previously outlined in the annex to the Ordinance-Law of March 13, 2018—have now been transferred to the Ministry of Finance. Gambling operators are required to contact the Directorate of Financial Regulation (DRF) to obtain their payment notices and fulfill their tax obligations.

The Ministry emphasized that the operating license tax is an annual fee, while the ad valorem tax on players' winnings is a monthly obligation, due by the 15th of the month following the payout of winnings. These new regulations, established by Ministerial Order on July 30, 2024, are now in effect.

The Congolese Government aims to bring order to the sports betting sector by enforcing these tax collections to bolster the State's revenue. All operators in the sector are urged to adhere to the laws governing gambling operations, including sports betting, casinos, and lotteries.

The communiqué further highlights that non-compliance with these tax obligations will result in severe penalties. The Ministry also reminded that unlicensed companies must regularize their status with the Ministry of Finance to continue operations.

The Ministry’s statement also specifies that the taxes on operating licenses and winnings are now categorized under Annex V of the Ministry of Finance, as per the Finance Law for the 2024 fiscal year, effectively removing these taxes from the Sports and Leisure section of the Ordinance-Law of March 13, 2018.