Deputies reduce taxes on electronic lotteries in the Dominican Republic

Chamber of Deputies adjusts tax burden in gambling bill

The Chamber of Deputies of the Dominican Republic took a significant step in regulating the gambling sector by modifying the bill that establishes the regulatory framework for this industry. With a vote of 111 in favor and only four against, substantial changes to the tax structure that will apply to non-cumulative electronic lotteries were approved on July 23rd.

Tax reduction on electronic lotteries

One of the central points of this reform is the halving of the tax originally proposed for non-cumulative electronic lotteries. While the initial version sent by the Senate stipulated a 5% levy on sales, the deputies decided to adjust this rate to 2.5%. Additionally, the legislative body completely eliminated the 1% charge on gross sales that appeared in the previous proposal.

The modification represents an important change in the tax treatment provided for electronic lotteries within the gambling bill.

The bill returns to the Senate for a new review

Following these modifications, the legislative piece must return to the Senate of the Republic. The senators will have the responsibility of analyzing whether to accept the variations introduced by the deputies or if, on the contrary, they propose new amendments. This back-and-forth process is fundamental to defining the definitive legal framework that will regulate the operations of the various actors in the gambling sector in the country.

Debate on fiscal impact

The decision to reduce tax rates has raised various questions regarding the fiscal impact these measures could have on state revenues. Although the main objective of the project is to organize and establish clear rules for the industry, the tax adjustment remains one of the most debated topics within the chamber.

The sports betting sector and other involved stakeholders are closely following the course of this law, as the bill continues its legislative journey in search of a consensus that allows for the modernization of gambling regulation in Dominican territory.