New Gambling Regulation in the Dominican Republic: What You Need to Know

The Dominican Republic's government has enacted a new law introducing a revamped regulatory framework for online gambling within the country. Regulation 136-2024, issued on March 26, 2024, by the Ministry of Finance, outlines the new regulatory regime governing online casinos and sports betting.

This regulatory framework will be overseen by the Directorate of Casinos and Gaming (Dirección de Casinos y Juegos de Azar). The decision to implement these measures follows the initiation of the regulatory process on February 28, 2024, marked by the issuance of formal advisory letter DM-051-2024.

A recommendation from the Dominican Republic Casino Commission to the Secretary of the Treasury paved the way for the establishment of "a new regulated Internet gambling and betting sector" in the Dominican Republic.

Online Gambling In The Dominican Republic

Regulation of online gambling in the Dominican Republic began in 2006, with the issuance of the first license in 2011 to Amaya, now known as The Stars Group after a rebranding in 2017. In 2019, Flutter Entertainment acquired Amaya. Despite the existence of two laws, Ley 139-11 and Ley 494-06, which laid the foundation for online gambling in the Dominican Republic, Amaya remained the sole license holder until now. This created a situation where the law existed more in theory than in practice, and it is uncertain whether Amaya still holds its license.

With the introduction of Resolution 136-2024, the Dominican Republic is set to establish a more comprehensive regulatory framework for online gambling. This move is expected to enhance competition in the local market and lead to increased government revenues with the entry of new participants.

What's Covered in Resolution 136-2024 on Gambling Regulation in the Dominican Republic?

The oversight of gambling laws in the Dominican Republic falls under the jurisdiction of the Directorate of Casinos and Games of Azar (Dirección de Casinos y Juegos de Azar), overseen by the Ministry of Finance (Ministerio de Hacienda), responsible for issuing licenses for online casinos and lotteries.

The regulatory process spanned multiple iterations from June 2019 to March 2024. Resolution 136-2024, comprising 36 pages, 7 chapters, and 36 articles, was endorsed into law and signed by Finance Minister José Manuel Vicente.

Per the new law, each license issued will be valid for five years, with a non-transferable status for the initial three years.

A casino license carries a fee of $346,000 (£275,000/€320,600), while a sports betting license costs $260,000 (£205,400/€239,500).

A separate license for "other applications," likely encompassing fantasy sports, poker, and bingo, commands a fee of $170,000 (£134,300/€156,600).

Though tax rates aren't specified in the resolution, the previous law (Ley 139-11) set the gross gaming revenue rate at 29% for land-based casinos, likely applicable to online casinos as well.

Applicants must demonstrate adherence to responsible gambling practices, including a mandatory self-exclusion process and measures to promote responsible gambling. This entails displaying session duration, offering options to limit bets and gaming time, and prominently featuring responsible gambling notices on their platforms.

What are the Requirements for Operators in the Dominican Republic?

Foreign operators seeking to enter the Dominican Republic's gambling market must fulfill several regulatory requirements:

1.       Company Registration: Operators must register their company with the country's Trade Register at the Chamber of Commerce and Industry (Registro mercantil). Additionally, they need to register with the Directorate of National Contributions (RNC) and the Directorate General of National Taxes (DGII).

2.       Criminal Record Certificates: All participants in the licensing process, including operators, must provide criminal record certificates from their company's country of origin. These certificates must be translated by a court-selected translator, recognized, and signed by the Attorney General's Office (PGR), and delivered to the Casino and Gaming Authority (DGCJA) within 25 days of issuance.

3.       Affidavit of Funds' Origin and Legality: Operators must submit an affidavit affirming the origin and legality of all shareholders' funds to the Attorney General's Office (PGR).

4.       Performance Bond: Companies are required to pay a "performance bond," amounting to $341,000 (£269,500/€314,200).

5.       Web Domain Registration: Operators must register a ".do" web domain to operate in the Dominican Republic. Additionally, all servers must be located within the country.

6.       Operational Timeline: Operators must commence operations within six months of receiving their license.

Meeting these requirements ensures compliance with Dominican Republic gambling regulations and facilitates entry into the country's gambling market.