Dominican Republic Revamps Online Gambling with New Regulation

Dominican Republic Ushers in a New Era with Comprehensive Online Gambling Regulation

In an unprecedented move, the Dominican Republic has enacted Resolution 136-2024, revolutionizing the online gambling sector. Signed into law on 26 March 2024, this resolution heralds a comprehensive regulatory regime for online casinos and sports betting. Spearheaded by the Ministry of Finance and the Dirección de Casinos y Juegos de Azar (Directorate of Casinos and Gaming), this initiative promises to bolster the nation’s competitive edge and increase state revenues through the introduction of new market entrants.

Historical Context and the Need for Change:

Online gambling in the Dominican Republic dates back to 2006, with The Stars Group (formerly Amaya) making history in 2011 as the first license holder. Despite the establishment of a legal framework through laws Ley 139-11 and Ley 494-06, the online gambling landscape remained largely unexploited, with The Stars Group being the sole licensee for many years. The introduction of Resolution 136-2024 addresses these limitations, aiming to expand the market and enhance regulatory oversight.

Resolution 136-2024: A Closer Look:

Resolution 136-2024, a 36-page document consisting of seven chapters and 36 articles, has been meticulously crafted to address the intricacies of online gambling regulation. This new law, ratified by Finance Minister Jose Manuel Vicente, outlines a detailed process for obtaining online casino and sports betting licenses, valid for five years with a non-transferable clause for the initial three years. The resolution sets the licensing fee at $346,000, encompassing both casino and sports betting operations.

Taxation and Financial Implications:

While the resolution itself does not specify taxation rates for online entities, it is anticipated to align with the existing gross gaming revenue rate of 29% established for land-based casinos under Ley 139-11. This tax structure is expected to significantly contribute to the Dominican Republic’s treasury, reflecting the government’s strategic approach to leveraging the online gambling sector for economic benefit.

Commitment to Responsible Gambling:

A notable aspect of Resolution 136-2024 is its emphasis on responsible gambling. Prospective licensees are required to demonstrate comprehensive responsible gambling programs, including mandatory self-exclusion mechanisms and operational measures to promote responsible gaming behaviors among patrons. These include displaying the session duration, offering bet and session duration limits, and ensuring the visibility of responsible gambling notices on all platforms.

Conclusion:

The enactment of Resolution 136-2024 by the Dominican Republic marks a pivotal moment in the evolution of online gambling regulation. By establishing a robust, comprehensive framework, the Dominican Republic positions itself as a leader in the Caribbean’s online gambling industry, setting a precedent for responsible operation and governance. This strategic initiative not only promises to diversify the country’s economic portfolio but also ensures a safe, responsible gaming environment for its citizens and global users alike. With this bold step, the Dominican Republic opens the door to enhanced competitiveness, increased state revenue, and a more regulated, secure online gambling landscape.