The iGaming market in the Democratic Republic of Congo (DRC), like a powerful car racing on a track with no one truly in control of the steering wheel due to vague regulations. Industry insiders reveal that despite legislative attempts, actual regulation is almost non-existent, leading to a market with an estimated annual revenue of almost 17 billion US dollars, contributing only about 1 million US dollars in taxes to the treasury last year. This huge gap reflects the absence of a regulatory framework, the difficulty in tracking data, and the unclear responsibilities of various institutions.
The market is like a "flood on vague shores," with an enigmatic scale
"This is a torrential river teeming with immense wealth, but its shores are so vague that no one can accurately measure the gold flowing through it," describes Louis Richard Tshimbalanga, CEO of Kinshasa's iGaming consulting firm Congoflex Sarl. The country's Minister of Finance has publicly stated that since the relevant laws were passed, the annual revenue of iGaming operators is estimated to be close to 17 billion US dollars. However, in stark contrast, the actual tax revenue for the national treasury is minimal. This situation makes the true scale of the market always a mystery, with unreliable data from all parties, laying the first obstacle for effective regulation and tax collection.
Regulatory "institutional ballet," conflicts of responsibility lead to tax leakage
Currently, the stage of iGaming regulation in Congo is mainly dominated by two "dancers," but their steps are often out of sync. One is the state-owned lottery company SONAL, established in 1984, which, relying on its historical monopoly position, attempts to charge operators a 7% monthly gross revenue (GGR) share. However, in the digital gaming era, this role appears outdated and unclear. The other is the Ministry of Finance, which has sovereign taxing rights and imposes a 10% tax on each winning lottery ticket.
The problem is that both lack effective means to obtain real transaction data from operators. An anonymous operator CEO admits, "We do pay, but how much depends entirely on 'self-discipline.' For some, 7% of the GGR might be 100 dollars, for others, it might be 100,000 dollars." This "trust-based" reporting mechanism allows the country's huge financial potential to slip through the fingers.
Mobile money becomes the transaction pillar, data protection laws become regulatory barriers
In Congo, with a population of 112 million, the lifeline of iGaming is firmly tied to mainstream mobile money transactions such as Mpesa and AirtelMoney. Tshimbalanga sharply points out, "Regulatory agencies can try, but how can they effectively control everything that happens under the shadow of mobile money transactions? This has become the pillar of Congo's iGaming." However, these crucial payment data are strictly protected by the 2020 Telecommunications and ICT Law and its Digital Code, aimed at protecting user privacy. Regulatory agencies have no right to access this data at will. "You can't even measure it, how can you manage it?" Tshimbalanga concludes. This puts the industry in a deep gray area: on one side is the state's urgent need for financial transparency, and on the other is the strict but vaguely defined user privacy protection, forming an insurmountable regulatory barrier.
What is the way out? Unified regulation and a transparent framework are key
Despite numerous challenges, industry insiders believe there is still hope for a breakthrough. The core solution lies in ending the current chaotic multi-head management, appointing a single, legitimate, and unified regulatory body. This requires the state to perfect its legal system and establish constructive dialogue with licensed operators. The ultimate goal is to build a modern, fair, and transparent regulatory framework. This framework needs to protect the rights of players, ensure the long-term investment security of operators, and ensure that the state can obtain its fair share from this tempting economic pie. For professionals looking to delve into complex global regulatory cases, PASA's official website provides rich industry analysis and compliance resources. Only by establishing such a system can Congo's iGaming industry transform from a chaotic "gray flood" into a clear force driving national development.
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This article is from "PASA-Global iGaming Leaders" gambling news channel:https://t.me/pasa_news
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