DR Congo accelerates gambling sector reform to combat money laundering and boost revenue

The government of the Democratic Republic of Congo (DRC) is moving swiftly to finalize the reform of the gambling sector as part of its efforts to bolster state revenues and tackle money laundering, according to Actualites.cd. The announcement came during the 21st meeting of the Council of Ministers on Friday, where Finance Minister Doudou Fwamba Likunde presented updates on the ongoing reform process.

Minister Fwamba emphasized that the 2022 assessment of the gaming sector revealed outdated and insufficient regulations, which pose significant risks, particularly in relation to money laundering activities tied to illicit and criminal financial operations. He highlighted the urgent need for reform, stating that the current system fails to address these challenges effectively.

To address these issues, a ministerial decree was issued to establish a dedicated management unit tasked with overseeing the reform of the gambling sector. This unit involves collaboration between the Ministry of Finance and the national lottery company, fostering a participatory approach to ensure the success of the reform process.

A key objective of the reform is to enhance the regulatory framework and combat money laundering more efficiently. In line with this, Minister Fwamba announced plans to host an international conference in the coming weeks, focused on the regulation of gambling and similar practices. The conference will bring together experts and officials from countries such as France, Ivory Coast, Senegal, and Belgium—nations selected for their similar gaming environments to the DRC.

The reform is seen as vital to unlocking the sector’s full economic potential. According to former Minister of Finance Nicolas Kazadi, the gambling industry in the DRC generates more than a billion dollars annually, but the state receives less than a million dollars in tax revenues. This disparity, he explained, stems from the proliferation of illegal operators and insufficient regulatory oversight.

In March 2023, Kazadi revealed that there were 139 illegal or irregular gambling operators in the country, underscoring the lack of reliable data on their earnings. He also noted that in 2022, the tax revenues from the sector amounted to just one billion Congolese francs (approximately one million dollars), which he described as "insufficient" given the sector's potential for contributing to the national economy.

With the new reforms in motion, the DRC aims to strengthen control over the gambling industry, enhance tax collection, and create a more transparent and accountable system.