Dominican Republic Eyes Gambling Tax Increase

The Dominican Republic is preparing higher taxes for casinos, lottery shops and sports betting agencies as part of a wider fiscal package aimed at increasing state revenue and tightening control over the gambling sector.

The Dominican Republic is moving toward a significant increase in gambling-related taxation as part of a broader fiscal package presented by the government to strengthen public finances.

The proposal forms part of the government’s “Plan Anticrisis,” a package designed to raise between RD$40bn and RD$50bn in additional revenue. The measures are intended to respond to pressure on public finances, maintain social spending and reduce the fiscal deficit without increasing the ITBIS value-added tax or imposing new burdens on micro and small businesses.

For the gambling sector, the draft includes higher taxes on casinos, lottery shops and sports betting agencies. Local reporting indicates that the annual tax on lottery shops could rise from RD$35,000 to RD$120,000, representing an increase of more than 240%. Sports betting shops in major areas such as the National District, Santo Domingo, San Cristóbal, Santiago, Duarte, Puerto Plata and La Vega would pay RD$500,000 per year, while those in other parts of the country would pay RD$300,000, compared with RD$150,000 under the current framework.

Casinos would also face higher monthly payments based on the number of gaming tables in operation. Establishments with one to 15 tables would pay RD$70,000 per table each month, while casinos with 16 to 35 tables would pay RD$80,000 for each table above the first scale. For casinos with 36 tables or more, the monthly charge would rise to RD$100,000 for each additional table.

The proposed increase comes as the Dominican Republic is already restructuring its gambling oversight. Earlier this year, the government reactivated the National Regularization Plan for lottery shops, betting agencies, points of sale and other gambling operators. That process aims to formalise businesses, verify tax compliance and bring pending operators into a clearer regulatory and fiscal framework.

The stronger role of the Dirección General de Impuestos Internos is especially important. By giving the tax authority more responsibility in verification and fiscal supervision, the government is signalling that gambling reform is now as much about revenue control as it is about licensing and market organisation.

For operators, the proposed changes could mean a much heavier cost structure, especially for smaller retail betting and lottery businesses. Companies may need to review profitability, licensing status and tax compliance before the new rules are approved and implemented.

For the Dominican Republic, the reform reflects a broader regional trend: governments are increasingly looking at gambling not only as an entertainment industry, but also as a formal revenue source that must be taxed, monitored and brought under stronger institutional control. If approved by Congress, the measure could reshape the economics of the country’s gambling market and accelerate the formalisation of a sector that has long faced challenges linked to informality and fragmented oversight.