The Dominican Republic has moved forward with a fiscal reform package that would raise taxes on casinos, lottery shops and sports betting outlets. The proposal is part of a wider government plan to increase revenue while restructuring oversight of the country’s gambling sector.
The package was submitted to Congress as President Luis Abinader’s administration looks for new income to support public spending and contain the fiscal deficit. The government is also trying to bring more gambling operators into the formal tax and licensing system.
Gambling taxes face sharp increases
The reform would raise the annual tax on lottery shops from DOP35,000 to DOP120,000. That would be an increase of more than 240% for one of the country’s most visible gambling segments.
Sports betting shops would also pay more. Outlets in major areas such as the National District, Santo Domingo, Santiago, San Cristóbal, Duarte, Puerto Plata and La Vega would pay DOP500,000 a year, compared with DOP225,000 now.
Sports betting shops in other parts of the country would pay DOP300,000. The current amount is DOP150,000, meaning the tax would double for those locations.
Casino table fees also rise
Casinos would face higher monthly charges on gaming tables. Properties with one to 15 operating tables would pay DOP70,000 per table, up from DOP32,500.
For casinos with 16 to 35 tables, the charge would rise to DOP80,000 for each table above the first scale. Casinos with more than 35 tables would pay DOP100,000 per additional table.
The higher charges would make gambling one of the sectors directly affected by the fiscal adjustment. The package also includes other tax measures, including a temporary rise in corporate income tax for large companies.
Restructuring plan changes oversight
The tax plan comes with changes to gambling oversight. Authorities have reactivated a national regularisation plan for lottery shops, betting outlets and gambling operators.
The plan gives the tax authority, DGII, a larger role in supervising operators and checking fiscal compliance. A multistakeholder council has also been created to coordinate the process.
That council includes public bodies such as Indotel, Ogtic and the National Lottery. Private-sector representatives from betting shops, sports betting operators and casinos are also involved.
Lottery could gain wider powers
A separate proposal in Congress would give the National Lottery more administrative autonomy. It would also expand the institution’s role in supervising and inspecting gambling activity. The proposal would cover lottery outlets, sports betting venues, casinos, electronic gaming and other games of chance. That would move more oversight into one institution while the government works to formalise operators and strengthen tax collection.
