Dominican Republic proposes stricter gambling taxes and licensing rules

According to Diario Libre, a new legislative proposal in the Dominican Republic seeks to significantly reform the country’s gambling taxation framework. The bill would modify Article 36 of Law 139-11 by increasing the annual tax on lottery houses from RD$50,000 to RD$60,149 and introducing a new 1% monthly tax on gross sales.

To register a lottery house, operators would be required to pay RD$317,765 as an initial fee. A transitional clause would impose a monthly payment of RD$2,400 until the business completes its interconnection process with the national system.

Electronic lotteries would also be affected by the reforms. These operators must be located at least 200 meters away from schools and healthcare centers, and would be required to pay 24% of monthly gross sales from cumulative draws, 5% from non-cumulative draws, and RD$54,000 annually for operational fees. Additionally, a 1% tax would apply to their daily gross sales.

Bingo halls would be subject to strict zoning rules, with minimum distances of 100, 300, and 500 meters from schools, other bingo halls, and rural zones respectively. They would also be taxed 10% of their monthly gross sales.

Violations of the proposed regulations could result in fines of up to 400 times the minimum public-sector wage. In serious cases, offenses could fall under Law 155-17 on money laundering and terrorism financing, with penalties ranging from six months to 10 years in prison, depending on the severity and frequency of violations.

If passed, the legislation would grant existing operators a grace period to comply with the new requirements. All gambling establishments would also be required to display a warning at their entrance: “Compulsive gambling harms your health,” mirroring similar alcohol warning laws.

Article 34 of the draft law prohibits issuing licenses to businesses or individuals sanctioned within the last four years for crimes such as fraud, money laundering, terrorism financing, counterfeiting, smuggling, or health-related offenses.

Furthermore, Article 102 mandates that all gambling operations be logged in the national Unified Registration System. This measure aims to improve oversight and transparency in the gaming sector.

President Luis Abinader, in a letter to Senate President Ricardo de los Santos, emphasized that the bill also aims to introduce legal and technological mechanisms to prevent minors from accessing online gambling platforms. The law would also include cybersecurity protections for users.

The full Senate has referred the legislation to a special committee for further analysis and reporting.