Home Regulatory ActionDRC Ministry of Finance Declares Sole Control Over Gambling Regulation

DRC Ministry of Finance Declares Sole Control Over Gambling Regulation

by Sienna Marques
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DRC Ministry of Finance Declares Sole Control Over Gambling Regulation

The Democratic Republic of Congo's (DRC) Ministry of Finance has asserted its exclusive authority over the regulation of the gambling sector in the nation.

In a press release issued on August 27, the Ministry reminded gambling operators that responsibility for this oversight was formally transferred from the Ministry of Sports and Leisure to itself via Ordinance No. 25/293.

The Ministry emphasized that this change eliminated any previous ambiguity regarding regulatory responsibilities in the DRC’s gambling industry.

Alain Malata Kafunda, chief of staff to the Minister of Finance, stated, "The Ministry of Finance reaffirms its determination to drive the reform of the gambling and games of chance sector in accordance with government directives, while upholding legal certainty for operators, transparency in activities and the protection of the Public Treasury's interests."

Additionally, the Ministry cautioned operators against complying with payment requests from departments lacking legal authorization, urging immediate reporting of such incidents to both the Ministry of Finance and the Directorate General of Administrative, Judicial, State Property and Equity Revenues (DGRAD).

The DGRAD is tasked with identifying and invalidating irregularly issued payment notices. The Ministry clarified that any approval, authorization, payment notice, or other actions taken by unauthorized departments are "devoid of legal effect," though operators remain responsible for their obligations to the DRC's Public Treasury.

The DRC is often viewed as a market ripe for growth in gambling, boasting a population exceeding 100 million. However, issues surrounding tax collection hinder progress within the sector.

In the previous year, Finance Minister Doudou Fwamba estimated that iGaming operators in the DRC generated around $1.7 billion in revenue but contributed only about $1 million in taxes. A CEO of a key operator noted that the tax system is primarily based on self-declaration, stating, "Operators do pay, yes, but they pay whatever suits them. In other words, we effectively pay what benefits us. All the while, the state has no means of monitoring its regulatory policies."

In light of these challenges, the Ministry of Finance has proposed a new gambling monitoring platform this year to improve sector oversight. Furthermore, the DRC government is working on a new legal framework aimed at modernizing current regulations and enhancing tax collection oversight.

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