Dominican Republic Weighs New Gambling Tax Measures

The Dominican Republic’s plans to strengthen its position as a regulated gambling destination in the Caribbean could face a new test as the government evaluates temporary tax measures that may affect casinos and gaming operators.

Finance and Economy Minister Magín Díaz has introduced a fiscal package to Congress aimed at generating between DOP40 billion and DOP50 billion in additional state revenue. The initiative is intended to help the country navigate ongoing economic pressures, including rising financing costs, inflation and higher energy expenses.

Although the Dominican economy continues to benefit from solid growth and a strong tourism sector, authorities believe additional revenue is required to sustain investment in infrastructure, public services and social programmes.

Among the industries expected to contribute under the proposed measures is the gambling sector. While officials have yet to outline the exact structure of any gaming-related tax increases, the package also includes proposals such as higher airline ticket taxes, increased charges on cheque and electronic transactions and new duties on vaping products.

Gambling Reform Continues

The fiscal proposals come at a time when the government is pursuing significant reforms of the gambling industry.

One of the key initiatives is the introduction of a nationwide self-exclusion system, allowing players to voluntarily block access to gambling services across all licensed operators. If implemented, the system would make the Dominican Republic the first country in the Caribbean to establish a centralized responsible gambling database.

The wider reform package also includes new licensing and taxation requirements for gambling businesses. Sports betting outlets would be subject to licensing fees, municipal charges and taxes on sales, while online operators would face either a 10% revenue tax or a temporary fixed monthly fee. Casinos would be taxed according to the number of gaming tables and slot machines they operate.

Licences would be granted for five-year periods, with restrictions on transfers during the first three years.

President Luis Abinader’s administration has presented the reforms as part of a long-term strategy to create a transparent and attractive gambling market under the oversight of the Dirección de Casinos y Juegos de Azar and the Ministry of Finance.

However, the possibility of additional temporary tax burdens could create uncertainty for operators and investors evaluating opportunities in the market. While the measures are designed to strengthen public finances in the short term, stakeholders are likely to assess how they align with the country’s broader goal of attracting investment and supporting industry growth.

Congress is expected to examine the proposals in the coming months as discussions continue over the balance between fiscal policy and regulatory development.