Conflict of interest: Legislators with ties to betting banks debate new gambling law
A crucial moment is being experienced in the National Congress of the Dominican Republic regarding the bill that seeks to regulate gambling. However, attention has focused on a significant finding: eight legislators —seven deputies and one senator— have declared having shares, properties, or direct economic ties to companies in the sector they intend to legislate.
The situation gains relevance because, in the Chamber of Deputies, substantial modifications were introduced to the original bill that alter the operational and economic conditions of the market. Among these changes, a ten-year moratorium stands out, which would prevent the installation of new establishments, thus protecting the position of existing businesses.
Who are the congresspeople with interests in the sector?
According to the sworn statements of assets, the interests are distributed among different political forces: four from the Modern Revolutionary Party (PRM), three from the People’s Force (FP), and one from the Dominican Liberation Party (PLD). The identified legislators are:
- Eduard Alexis Espiritusanto Castillo (Senator, FP): Related to the Eduard Betting Consortium.
- Domingo Eusebio de León Mascaró (Deputy, FP): Links to the La Solución and Loteka Betting Consortium.
- Sergio “Gory” Moya de la Cruz (Deputy, PRM): Shares in La Solución Sport SRL.
- Juan Carlos Echavarría Milané (Deputy, PLD): Owner of the Joselito Betting Consortium.
- Carlos José Gil Rodríguez (Deputy, FP): Related to the La Dinámica Betting Consortium.
- Orlando Antonio Martínez Peña (Deputy, PRM): OM Betting and shareholder of Lotedom.
- Melvin Alexis Lara Melo (Deputy, PRM): Related to Alex Lara Betting.
- Alexander Javier Cuevas (Deputy, PRM): Linked to Alex Sport Betting.
Impact of legislative modifications
The bill not only proposes a decade-long moratorium, but also introduces changes that favor the operability of banks. Among the most notable points are:
- Extended licenses: Sportsbooks would have permits with a duration of up to ten years.
- Capacity expansion: The number of authorized slot machines per establishment is increased from ten to fifteen.
- Tax benefits: Article 129 proposes reducing the tax rate for non-cumulative electronic lottery games from 5% to 2.5%, while also eliminating an additional 1% tax on gross sales.
- Renewal facilities: Lower fees are established for license renewals, and the continuity of operations is permitted during administrative renewal processes.
While having declared economic interests does not constitute an irregularity per se, the participation of these congressmen in the creation of laws that directly benefit their businesses opens a necessary debate on parliamentary ethics and potential conflicts of interest in the Legislative Branch.
Critical voices regarding the project
The project has faced strong criticism. The National Association of Sports Betting (ASONABADE) has questioned the transparency of the process, pointing out that the final content differs drastically from the original proposal. On the other hand, civil organizations such as the Citizens’ Network Against Corruption have requested that President Luis Abinader veto the piece, warning about the negative impact that an excessive expansion of gambling would have on public health and low-income families.
As the debate progresses, Alofoke Deportes will continue to monitor how these provisions affect economic competition and whether congressmen with interests in the area will recuse themselves from the final votes to ensure the transparency of the process.
