Dominican Republic Targets Gambling in Tax Reform

The Dominican Republic has introduced a broad economic package designed to strengthen public finances, support economic activity and safeguard vulnerable groups amid ongoing global economic uncertainty.

Finance and Economy Minister Magín Díaz said the measures are intended to create a more sustainable fiscal position while maintaining protections for sectors most affected by international economic pressures. The government estimates the package could generate between 40 billion and 50 billion Dominican pesos in additional revenue.

The plan is built around four key areas: policies aimed at stimulating growth, simplification of the tax system, actions to combat tax evasion and fiscal consolidation measures. Authorities say the objective is to preserve public spending levels in order to continue funding investment projects and social support programmes.

One of the main fiscal measures involves a temporary increase in taxation for large corporations. Under the proposal, companies generating more than 1 billion pesos in annual revenue would be subject to an additional three-percentage-point surcharge on Corporate Income Tax until the end of 2028, raising the effective rate to around 30%.

Government figures indicate that the measure would affect only a small portion of businesses operating in the country, representing roughly 0.8% of all enterprises.

The package also includes adjustments to cheque and electronic transfer fees, with rates increasing from 0.15% to 0.2%. In addition, authorities plan to introduce a selective consumption tax on electronic cigarettes.

The gambling sector is also expected to face higher taxation under the reform package. While officials have confirmed plans to increase taxes on casinos and gambling-related activities, specific details regarding those measures have not yet been released.

Another revenue-raising initiative included in the package is a US$10 increase in airline ticket taxes.

Alongside the fiscal reforms, lawmakers are considering changes to the structure of the country’s gambling regulatory system.

A bill submitted to the Senate by Senator Pedro Tineo proposes transforming the National Lottery into an autonomous state institution with its own financial independence. If approved, the National Lottery would become the primary regulatory authority overseeing lotteries, sports betting, casinos, electronic gaming and other gambling activities.

At present, the National Lottery operates under the Ministry of Finance and Economy and shares certain responsibilities with the Directorate of Casinos and Games of Chance (DCJA).

The proposed legislation would significantly expand the National Lottery’s role, granting it authority over inspections, regulation and enforcement across the gambling sector.

The proposal follows the launch of the National Regularization Plan for lottery outlets, betting shops and gaming businesses under Decree 197-26. Under that framework, the General Directorate of Internal Taxes (DGII) is responsible for tax collection and compliance oversight, while the National Lottery serves on the Advisory Council overseeing implementation of the programme.

National Lottery Administrator Teófilo Tabar has also been appointed to lead the initiative on an interim basis as authorities continue efforts to formalise and strengthen oversight of the country’s gambling industry.