Dominican Republic Debates tighter Regulation of Gambling Sector Amidst Rapid Growth

Santo Domingo, DR-A new bill submitted by the Executive Power to further regulate the rapidly expanding gambling sector in the Dominican Republic is generating both support and scrutiny. The proposed legislation arrives as the nation has one lottery or sports betting location for every 328 residents.

While representatives from key unions connected to the industry have pointed out potential weaknesses in the initiative, several legislators with business interests in the sector are voicing their support. The core debate revolves around balancing regulatory oversight with the economic realities of the existing gambling landscape.

Concerns Over Minimum Distance Requirements

Cristian Guzmán Núñez, vice president of the National Federation of Lottery Banks (Phenabanca), stated that the proposal “is violating” fundamental principles crucial for the sector’s profitability, specifically regarding the minimum operational distance between betting locations.

Guzmán explained that the proposed legislation threatens the established 200-meter margin that must exist between lottery banks, a distance he considers vital for the sustainability of these businesses. He emphasized that this principle is currently protected by decrees 730-02 and 1167-01.

Did You Know? The Dominican Republic has one of the highest densities of lottery outlets per capita in the world.

Article 60 of the Executive Project stipulates that lottery houses cannot be established “less than 200 linear meters” from educational centers,childcare facilities,medical and disability care centers (CAID),churches,and main government buildings. However, it does not explicitly mention the distance between lottery benches themselves.

Casino Association Analyzes Potential Impact

david Moniz, president of the Dominican Association of game Casinos (Adcj), told Diario Libre that they have activated their Emergency Committee to analyze the project’s potential impact on the casino industry. Casinos generate approximately 40% of the collections within the games of chance sector.

Both Guzmán and Moniz stressed the importance of including input from key industry leaders through public consultations during the legislative process in the Upper House.

Gambling Density: One Outlet per 328 Inhabitants

Official statistics indicate that between 2022 and 2023, there were 32,865 lottery and sports betting establishments nationwide. this equates to approximately one outlet for every 328 residents, based on data from the National Lottery database.

Of that total, 94.11% were lottery establishments (2023) and 5.89% were sports betting locations (2022), representing a rate of 30.5 outlets per 10,000 inhabitants.

Provinces with the highest concentration of gambling outlets include:

• Mirabal Sisters: (50.29 per 10,000 residents)
• Montecristi: (47.93)
• Santiago Rodríguez: (46.11)
• Espaillat: (43.97)
• puerto Plata: (43.50)

Conversely, Bahoruco, Pedernales, Elías Piña, and El Seibo have the lowest rates, all below 18 outlets per 10,000 residents. Pedernales, in particular, has only 56 outlets for over 34,000 residents, or one per 614 people.

In 2024,the Adcj reported that casinos generate about 40% of the collections of the games of chance sector. According to the organization’s figures, the contributions to the economy from this industry amount to approximately 3,211 million pesos annually.

Key Provisions of the Proposed Legislation

President Luis Abinader, through the legal consulting office, submitted the bill to regulate and supervise games of chance, with the stated goal of combating money laundering.

The legislation proposes the creation of the General Directorate of Games of Chance (DGJA), which would be responsible for granting operational licenses to gambling establishments.

the scope of the initiative includes casinos, slot machine rooms, sports betting houses, lottery houses, equestrian agencies, National Lottery raffles, electronic lotteries, lottery betting points of sale, slot machines, games of chance and internet bets, traditional bingos, electronic bingos, and beneficial and non-beneficial raffles.

Legislators Weigh In

Legislators who own lottery benches have expressed support for the bill’s approval, aiming to organize what they describe as “the disaster” in the sector. Though, they have also requested a thorough review of the proposed tax burden.

The bill proposes that lottery benches pay 1% of their monthly gross sales,in addition to an increase in the annual tax from 50,149 to 60,149 pesos.

Deputy juan Carlos Echavarría, owner of the Joselito Bancas Consortium, believes the initiative is timely, given the high levels of illegality within the sector.

Melvin Lara, owner of Alex benches, also supports the establishment of clear rules, recalling previous government provisions such as minimum distances between outlets and sensitive centers.

Deputy Carlos Gil,owner of the Bank Consortium La Dinamá,described the proposal as necessary,arguing that the core issue has been the lack of enforcement of existing laws,rather than a lack of legislation.

Senator Edward Spiritusanto, owner of Bancas Edward, emphasized the long-standing need for regulation and stressed the importance of an efficient system.

He suggested focusing on enforcing compliance from informal operators, rather than increasing the burden on the formal sector. He noted that the Treasury Commission will lead the analysis of Abinader’s bill.

Pro Tip: Stay informed about the evolving regulations in the Dominican Republic’s gambling sector to ensure compliance and adapt your business strategies accordingly.

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