President Luis Abinader of the Dominican Republic has been urged to consider imposing temporary tax charges on several businesses and services, including gambling.
The proposal was put before Congress by Magín Díaz, Minister of Finance and Economy, as part of a broader fiscal package designed to secure between DOP40bn and DOP50bn (£503.4m-£630.1m) in additional revenues.
Addressing Congress, Díaz argued that the government requires short-term funding to maintain investment in public infrastructure, welfare programmes and essential services while navigating a period of global economic uncertainty.
Caribbean economies continue to face inflationary pressures, higher import costs and volatile energy prices impacting the region.
While the Dominican Republic remains one of the fastest-growing economies in Latin America, Díaz noted that external pressures have increased the cost of government borrowing and placed additional strain on public finances. The administration believes many of these challenges will prove temporary, supported by another strong summer tourism season and resilient consumer spending.
However, Díaz cautioned that immediate action is required to avoid cuts to strategic investment projects and social protection initiatives championed by President Abinader.
Tough Choices
The proposed measures extend beyond gambling. The Ministry of Finance is also assessing a $10 increase in airline ticket taxes, a rise in the levy on cheque and electronic transfers from 0.15% to 0.20%, and the introduction of new excise duties on electronic cigarettes and vaping products.
A temporary 3% surcharge on corporate income tax has also been proposed for domiciled businesses that generate above DOP1bn (£7.46m) in annual income. Yet political observers believe such a measure could face resistance, given Abinader’s repeated pledge not to increase taxes on citizens or domestically based companies during his presidency.
Among the sectors targeted is gambling, with the government confirming that casinos and games of chance would face higher taxation under the package. Officials have yet to disclose the precise rates or structure of any increase.
Abinader pitches for gambling reforms
For the gambling industry, however, the proposal raises questions about the future direction of the Dominican Republic’s regulatory overhaul.
Reform of the gambling sector formed a key pillar of Abinader’s successful re-election campaign in 2024. Since beginning his second term, the President has reviewed a series of legislative proposals designed to modernise the country’s licensing framework, strengthen consumer protections and position the Dominican Republic as a leading regulated gambling jurisdiction in the Caribbean.
Among the most significant proposals is the creation of a national self-exclusion register, which would make the Dominican Republic the first Caribbean nation to implement a centralised player protection database. The reforms also envisage enhanced responsible gambling standards and tighter regulatory oversight of operators.
The proposed gambling legislation introduces sweeping new fiscal and licensing requirements. Sports betting venues would be required to pay more than DOP794,000 (£9,844) for an operating licence, alongside annual municipal charges of approximately DOP386,000 (£4,773) and a 1% levy on gross sales.
Online gambling operators would face a 10% tax on revenue or, during a transitional period, a fixed monthly fee of DOP5m (£61,896).
Casinos would be subject to scaled charges ranging from DOP14,000 (£175) to DOP85,000 (£1,058) per gaming table or slot machine.
All licences would be valid for five years, though they would remain non-transferable during their first three years.
Abinader’s long-term ambition has been to position the Dominican Republic as the Caribbean’s principal hub for regulated gambling enterprises under the supervision of the Dirección de Casinos y Juegos de Azar (DCJA) and the Ministry of Finance. Regulatory reforms have been accompanied by efforts to promote the jurisdiction as a stable, transparent and commercially attractive destination for gaming investment.
Whether additional gambling taxes align with that vision remains uncertain. While the measures may help close short-term budget gaps, industry stakeholders are likely to question whether further fiscal burdens could undermine the government’s wider objective of attracting new operators, investment and employment to the Dominican market.
