Bill seeks to reduce tax debts for betting operators The Chamber of Deputies approved a bill that establishes a special discount regime for the tax debts of gambling operators in the Dominican Republic. This measure, contemplated in article 192 of the initiative, allows businesses in the sector to regularize their accumulated tax obligations up to December 2025 under preferential conditions. Although the proposal does not use terms such as “forgiveness,” experts point out that the scope of these benefits could significantly reduce the amounts owed to the State. The special regime will be coordinated by the General Directorate of Gambling (DGJA), the Ministry of Finance, and the General Directorate of Internal Taxes (DGII), based on Law No. 30-26. The debate has gained momentum due to the participation of eight legislators with declared interests in the betting and lottery sector. While no irregularity has been proven, the presence of congressmen linked to these companies in the legislative process raises questions about potential conflicts of interest. The project also introduces significant changes to the market, such as the reduction of tax rates for electronic lotteries and a ten-year ban on the issuance of new licenses, which would favor those who manage to regularize themselves under the new registry. Given this scenario, various sectors are demanding greater transparency regarding who drafted the controversial article 192, the actual fiscal impact for the State, and the identity of the final beneficiaries of these tax facilities.

Gambling bill proposes tax relief for sector operators

A recent bill seeking to regulate gambling in the Dominican Republic has sparked intense debate, especially due to the contents of its article 192. This initiative, which has already been approved in the first instance by the Chamber of Deputies, establishes a special discount regime designed for operators in the sector to regularize their tax debts accumulated up to December 2025.

The regulation, coordinated between the General Directorate of Gambling (DGJA), the Ministry of Finance, and the General Directorate of Internal Taxes (DGII), would allow owners of betting shops and other businesses linked to gambling to access significant reductions in their outstanding tax obligations, provided they comply with the established registration and formalization processes.

The scope of these tax facilities will depend on the criteria defined in Law No. 30-26, opening the possibility for operators to settle their obligations for amounts lower than those originally owed to the State.

Conflicts of interest and the role of Congress

One of the most contentious points in the analysis of this project is the presence of legislators who have direct economic ties to the betting sector. According to sworn asset declaration records, at least eight congressmen—seven deputies and one senator—have reported shareholdings or ownership in lottery and sports betting consortiums.

• Eduard Alexis Espiritusanto Castillo (Senator, FP)
• Domingo Eusebio de León Mascaró (Deputy, FP)
• Sergio Moya de la Cruz (Deputy, PRM)
• Juan Carlos Echavarría Milané (Deputy, PLD)
• Carlos José Gil Rodríguez (Deputy, FP)
• Orlando Antonio Martínez Peña (Deputy, PRM)
• Melvin Alexis Lara Melo (Deputy, PRM)
• Alexander Javier Cuevas (Deputy, PRM)

Although the participation of these congresspeople in the legislative process does not in itself constitute an irregularity, experts point out the need for transparency regarding who specifically drafted article 192 and what technical studies support these economic concessions. The lack of clarity regarding the fiscal impact —that is, how much money the State will cease to receive— is one of the greatest current concerns for public opinion and various economic sectors.

Other relevant modifications

In addition to the discount regime, the piece of legislation includes strategic changes for the betting market:

• Tax reduction: The gross sales tax rate for electronic lotteries was set at 2.5%, eliminating previous additional levies.
• License moratorium: A ten-year ban on the issuance of new licenses is contemplated, protecting current operators from new competitors.
• Operational expansion: The validity of sports betting licenses is extended to a decade and the permitted number of slot machines is increased.

As the project progresses, from Alofoke Deportes we will continue to monitor the deliberations in Congress, emphasizing the importance that decisions affecting the public treasury be treated with absolute transparency and under a framework of equity for all actors in the national economic system.