Dominican Republic Revises Gambling Tax Proposals

The Dominican Republic Senate has introduced amendments to the draft Anti-Crisis Plan, a fiscal initiative expected to generate between DOP 40 billion and DOP 50 billion in additional revenue.

Originally unveiled in early June, the plan includes measures such as tax amnesty programs, the elimination of advance tax payments and broader fiscal reforms aimed at strengthening public finances. Before advancing through Congress, however, lawmakers revised several provisions related to the gambling sector.

The adjustments were proposed with the involvement of Senator Pedro Catrain, a member of the bicameral committee responsible for reviewing the legislation. According to Catrain, the changes are designed to reduce the initial tax burden on gambling activities while still supporting the government’s revenue targets.

Revised Tax Structure for Gambling Winnings

One of the key modifications concerns the taxation of lottery and betting winnings.

Under the updated proposal, the previously planned flat 25% tax would only apply to winnings exceeding DOP 600,000. This represents a significant departure from the original version, which sought to impose the same rate regardless of the amount won.

The revised framework introduces a tiered system instead. Winnings ranging from DOP 200,000 to DOP 600,000 would be subject to a 15% tax, while prizes below DOP 200,000 would remain exempt.

Lawmakers argue that the new structure creates a more balanced approach between revenue generation and reducing the burden on smaller winners.

Lower Annual Fees for Lottery Agencies

The bill also reduces the proposed annual fixed tax for lottery agencies.

Initially set at DOP 120,000 per outlet, the annual fee has been lowered to DOP 85,000 for each location. The amendment is intended to ease operating costs for businesses while preserving expected fiscal contributions from the sector.

Following approval by the bicameral committee and the granting of urgent status, the Anti-Crisis Plan will proceed through the remaining stages of the legislative process as part of the government’s broader strategy to reform the tax system and secure additional funding for economic programs.

National Lottery Reform Proposal

Alongside the Anti-Crisis Plan, lawmakers are also considering a separate initiative that could reshape gambling regulation in the country.

Senator Pedro Tineo has proposed legislation that would transform the National Lottery into an autonomous public institution with independent financial and administrative authority.

If approved, the National Lottery would become the principal regulator of the gambling industry, overseeing lottery operators, sports betting businesses, casinos, electronic gaming activities and other segments of the market.

Currently, several regulatory responsibilities are handled by the Directorate of Casinos and Games of Chance (DCJA), which operates under the Ministry of Finance and Economy. The proposal would significantly expand the National Lottery’s role within the country’s gambling oversight framework.