The widely publicised gambling reforms in the Democratic Republic of Congo (DRC) are still under discussion and development. They include a new tax bill and a proposed national iGaming monitoring system.
Louis Richard Tshimbalanga, Congoflex Sarl’s CEO and PstBet Congo’s Country Manager, notes that the African state lacks a well-thought-out regulatory framework. The local industry also needs tools to assess its scale reliably.
Legal Gaps: Consequences for the Market
According to Doudou Fwamba, the DRC’s Minister of Finance, the annual revenue of online operators since the adoption of the basic gambling law is estimated at around $1.7 billion. Nevertheless, only about $1 million in taxes has been delivered to the state budget.
In an attempt to change the situation, the authorities last year approved a bill designed to oversee all forms of ground and digital entertainment. The project was adopted, but effective, practical measures for existing niche brands have not yet been implemented.
Mr Tshimbalanga noted that the industry is developing rapidly and chaotically. However, neither clearly defined legal mechanisms nor a fully-fledged supervisory body actually exist. The lack of an intelligible regulatory framework has created an unprecedented situation: operators work with a high degree of freedom due to the absence of even a basic set of market rules.
This view is shared by the CEO of a locally recognised gambling brand, who wished to remain anonymous. The executive claimed that the current model is largely based on a declarative principle, under which business owners transfer data to government agencies themselves.
The jurisdiction serves as a unique hub for sports betting and lotteries. Operators are officially registered and pay taxes. Nevertheless, the entrepreneurs contribute only as much to the treasury as they deem necessary. Thus, the country lacks effective tools to enforce its regulatory policies.
Who Sets the Rules in the Gaming Sphere
In the existing market structure, 2 major organisations can be identified. They strive to shape a unified development vector for the industry, but act inconsistently in most cases.
Société Nationale de Loterie (SONAL)
Central facts about the association:
- is owned by the state authorities;
- supports national social and artistic projects;
- emerged due to Ordinance No. 84−155 (July 4th, 1984);
- is allowed to conduct games of luck, lottery draws, and wagering pools.
Initially, the company held a legal monopoly on organising raffles and sportsbook activities. However, amid attempts to update the regulatory model, its role has become less clear. In some cases, the operator has assumed the functions of a supervisory body, requiring niche brands to pay 7% of their monthly GGR.
To justify its position, SONAL cites the historical monopoly that developed before the market’s digitalisation. Nevertheless, with the current levels of global Internet and other technology penetration, the association’s strategy is rather outdated.
Congo’s Ministry of Finance
The institution performs a sovereign fiscal function, levying a 10% tax on each winning ticket. Mr Tshimbalanga commented on the situation, saying that this is where the key issue pops up. Regulators and the agencies that attempt to fulfil their role lack the tools to assess the true scale of the market, as they have no access to essential aggregated data.
The Ministry’s position is further complicated by its legal «blindness» regarding mobile payments, which are the operators' primary source of income. Such conditions have arisen due to restrictions related to customer data protection. Laws in this area need to be revised. In its current form, the format calls into question the justification for the 10% tax levied by Congo’s institution.
Mobile Transactions: Key Gambling Infrastructure
The country’s population is approximately 112 million. A significant portion of these people actively use payment systems designed for portable devices.
Today, 4 major providers dominate the market:
- Mpesa;
- Afrimoney;
- Airtel Money;
- Orange Money.
Mobile transactions have become a fundamental element of the online entertainment segment in the country. Data on all financial operations processed through these platforms is protected by ARPTC, which has no legal basis for handing over such information to third parties.
These restrictions are enshrined in Law 20/017 (November 25th, 2020) and further strengthened by amendments in the Digital Code (March 13th, 2023). In accordance with one of the articles, the processing of personal data is permitted only with the individual’s consent or upon a prosecutor’s office request. Because of these regulations, supervisory bodies lack the tools to control the sphere effectively.
Potential Solutions to Congo’s Oversight Issues
Mr Tshimbalanga believes that the situation can be improved. At the same time, to achieve real change, the government must focus on creating the promised centralised monitoring system. This decision will streamline the collection of baseline data and form the basis for subsequent operations and analytical planning.
The executive noted that if the authorities continue to delay reforms, they risk missing out on significant economic potential and making the market unattractive for major international brands. Creating a clear framework and a single, legitimate regulatory body is key to building constructive interaction between the government and businesses.
A modernised and balanced system can protect the interests of all parties:
- safe, fraud-free sessions for players;
- reduced financial risks for niche companies;
- new solid funds to social programs for the population;
- a transparent environment for gambling software providers;
- attractive long-term investment conditions for potential sponsors.
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