The Senate Plenary has approved the first reading of the bill regulating games of chance, including lotteries, in the Dominican Republic.
In what would be a significant development for the country’s gambling framework, the new legislative measure seeks to establish rules governing the authorisation, oversight, and supervision of individuals and legal entities that develop, operate, or market any type of gambling or betting activity within the national territory.
Senator Guillermo Lama presented the committee’s report to the Senate plenary and requested that it be included on the agenda for the current session.
The bill, introduced by Senate Vice President Pedro Catrain and Senator Félix Ramón Bautista Rosario, was merged into a single proposal using Senator Catrain’s version as the basis.
The bill states that in recent years, the gambling industry in the Dominican Republic has experienced significant growth across all sectors, including casinos, sports betting shops, lotteries, and online betting platforms.
According to the bill, official data from the Directorate of Casinos and Games of Chance of the Ministry of Finance indicate that there are more than 71,000 registered lottery and sports betting outlets throughout the country, demonstrating the sector’s dynamism and highlighting the need to strengthen government regulation and oversight.
The new legislation regulates the gambling industry and aims to prevent minors from participating in online betting platforms through robust identity verification systems, strict advertising rules, and specific requirements regarding betting products and events.
The Impact of Tax Reform on the Gambling and Lottery Industry
Meanwhile, attorney Yamile Gutiérrez analyzed the implications of the recently approved Law 30-26 on Pro-Economic Growth Measures, Tax Simplification, and Mitigation of the International Crisis, emphasizing the need to balance tax revenue objectives with the sustainability and competitiveness of licensed operators in the sector.
Gutiérrez explained that the new legislation marks a turning point for an industry that is already highly regulated, closely supervised, and makes a significant contribution to the Dominican Republic’s economy. However, she noted that licensed operators will need to carefully assess how the new provisions will affect their financial and operational structures.
Gutiérrez stated: “The reform has already been approved, and the priority now is to ensure that its implementation strengthens the economy without undermining the competitiveness of businesses that comply with the law.”
The expert stressed that one of the sector’s main challenges continues to be the existence of illegal operators that conduct business without licenses, government oversight, or compliance with the tax and regulatory obligations imposed on formally established companies.
She also warned that international experience shows that increasing the tax burden on regulated operators without an effective strategy to combat illegal gambling can distort the market and give an advantage to those operating outside the legal framework.
“Illegal operators do not pay taxes, do not implement anti-money laundering programs, do not protect consumers, and do not apply responsible gambling measures. Therefore, any effort to increase tax revenue must be accompanied by decisive actions to combat illegal operations,” she concluded.
