Dominican Republic Eyes Casino Tax Hike in Fiscal Push

Dominican Republic Eyes Casino Tax Hike in Fiscal Push

The Dominican Republic has adopted an anti-crisis economic package that includes planned higher taxes for large companies and casinos, alongside a proposal to restructure gambling oversight under an expanded National Lottery.

Finance and Economy Minister Magín Díaz said the measures aim to put public finances on a more sustainable path while preserving spending on investment and social protection. The government expects the package to generate between RD$40bn and RD$50bn. Four areas anchor the strategy: pro-growth policies, tax simplification, anti-evasion measures and fiscal consolidation.

Large Companies and Casinos Face Higher Taxes

The most direct business measure is a temporary surcharge on Corporate Income Tax for large companies. The package would add three percentage points to the ISR rate until the end of 2028. The surcharge would likely take the rate to 30%.

Only companies with annual revenue above RD$1bn fall under the measure. That group represents about 0.8% of all enterprises active in the Dominican Republic.

Beyond corporate tax, the package raises fees on cheques and electronic transfers from 0.15% to 0.2%, introduces a selective consumption tax on electronic cigarettes and adds a $10 increase to airline ticket taxes.

For the gambling sector, higher taxes on casinos and gambling-related activities are part of the package. The rate, timing and exact taxable base have not been confirmed in the documentation available.

National Lottery Could Gain Wider Gambling Powers

Senator Pedro Tineo has promoted legislation that would transform the National Lottery into an independent state entity with financial autonomy, a move that runs in parallel with the fiscal reforms.

Under the proposal, the National Lottery would become the main supervisor of lotteries, sports betting, casinos, electronic games and other gambling-related activities. At present, it operates under the Ministry of Finance and Economy and performs several tasks linked to the Directorate of Casinos and Games of Chance.

The exact legislative status of the proposal is unclear from the source article. The initiative is described both as a law adopted by senators and as a bill submitted to the Senate.

If approved, the National Lottery would take on broader powers in inspection, regulation and enforcement. That shift sits within the National Regularization Plan for lottery offices, betting houses and gaming businesses, activated under Decree 197-26.

Under that plan, tax collection and legal compliance fall to the General Directorate of Internal Taxes. The National Lottery would participate through the Advisory Council, while National Lottery Administrator Teófilo Tabar has been appointed temporary head of the program.

💡 TGJ Take

For operators in the Dominican Republic, the issue is not only a possible casino tax increase. The bigger shift is that fiscal pressure and regulatory control are moving together. Larger operators may need to model the combined effect of higher corporate tax, gambling-specific taxes and tighter inspections. Smaller betting businesses should pay close attention to the regularization plan, because tax compliance now appears to be moving closer to day-to-day gambling supervision. The unclear status of the National Lottery legislation adds another compliance risk that operators cannot yet fully plan around.

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