DR Congo gambling industry generates over $1 billion, but state gains only $1 million

The Democratic Republic of Congo (DRC) gambling sector is booming, generating over a billion dollars annually, yet the state receives a mere one million dollars from this lucrative industry, according to former Finance Minister Nicolas Kazadi. This stark imbalance is attributed to a surge in illegal operators and insufficient regulatory oversight, as reported by Actualite.cd.

In March 2023, Kazadi highlighted the presence of 139 illegal or irregular gambling operators in the DRC, expressing concern over the lack of reliable data regarding their revenues. In 2022, tax revenues from the gambling sector amounted to only one billion Congolese francs (approximately one million dollars), which Kazadi deemed "insufficient" given the sector's economic potential.

To address these issues, the government is considering reforms aimed at enhancing oversight. A ministerial meeting in May 2022 proposed establishing a monitoring commission to track suspicious transactions and ensure proper tax collection. Additionally, regulatory frameworks are being developed to oversee games of chance, sports betting, and lotteries, which are experiencing significant growth, particularly in Kinshasa.

Kazadi stressed the urgent need for a strengthened regulatory framework that captures economic benefits while safeguarding consumers from the potential social harms associated with this rapidly expanding sector.

The Ministry of Finance has introduced new tax measures targeting gambling operators, including those involved in sports betting and lotteries. These changes are part of the 2024 Finance Law, enacted on December 10, 2023. The Ministry clarified that the operating license tax is an annual fee and that an ad valorem tax on players' winnings is due monthly by the 15th following payout. The Congolese government aims to bring order to the sports betting landscape by enforcing these tax collections to enhance state revenue. All operators are urged to comply with existing laws governing gambling activities.