Dominican Republic Adjusts Lottery Taxes in Anti-Crisis Plan: Key Changes for Operators and Players

The Dominican Republic Senate has revised its Anti-Crisis Plan, introducing significant changes to the taxation of gambling activities as part of a broader economic initiative. The plan, with a proposed budget of DOP 40-50 billion, aims to stimulate the economy through tax amnesty, fiscal reforms, and the cancellation of advance tax payments. However, the latest amendments focus on easing the tax burden on lottery and betting operators while maintaining fiscal revenue goals.

Key revisions include a graduated tax system for gambling winnings. Under the updated proposal, a 25% tax will now apply only to winnings exceeding DOP 600,000. Winnings between DOP 200,000 and DOP 600,000 will be taxed at 15%, while amounts below DOP 200,000 will remain tax-free. This shift from the original flat 25% tax was championed by Senator Pedro Catrain, who emphasized the need for a balanced approach to protect both players and the government’s revenue targets.

Additionally, the annual fixed tax for lottery agencies has been reduced from DOP 120,000 to DOP 85,000 per location. These adjustments, supported by the bicameral commission, are now set to proceed with urgency through Congress, aligning with the government’s broader efforts to optimize the tax system and secure additional funding for economic programs.

Separately, Senator Pedro Tineo has proposed restructuring the National Lottery into a decentralized public organization. If approved, this entity would oversee all gambling activities, including lotteries, sports betting, casinos, and electronic gaming, currently regulated by the Directorate of Casinos and Games of Chance (DCJA) under the Ministry of Finance and Economy.