In recent years, LatAm has been one of the most exciting regions for the online gambling industry. As more and more countries introduce regulations, there has been an explosion of operator activity and a boom in player numbers.
Last month, authorities in the Dominican Republic signed legislation that will establish a new regulatory framework for online gambling in the country. For operators looking to expand into LatAm, this will have come as welcome news. Let’s find out more.
History of Online Gambling in the Dominican Republic
In 2006, the Dominican Republic signed off the country’s first regulatory legislation to permit online gambling. However, it wasn’t until 2011 that the first licence was issued, to a company known then as Amaya, later rebranding to The Stars Group.
This remains the only licence issued in the Dominican Republic. The online gambling sector in the country has stagnated, and it is difficult to ascertain whether this initial licence is still valid.
Given the explosion of online gambling across the LatAm region, and the associated benefits that come with regulating the practice, it was widely expected that the Dominican Republic would look to update legislation in the country, and that’s exactly what they did.
The New Regulation
Resolution 136-2024 was issued on 26 March in the Dominican Republic, with the legislation set to pave the way for an online gambling revolution in the country. The resolution is designed to establish a framework for online gambling and follows a regulatory process initiation that was completed at the end of February this year.
The new regulation means that licences can now be issued to new operators in the Dominican Republic. The new rules established under the legislation will be overseen by the country’s Direccion de Casinos y Juegos de Azar.
Authorities will hope this will lead to an influx of operators coming to the Dominican Republic, with the country set to benefit from the associated state revenues that come with such activity.
What Does this Mean for Operators?
Operators looking to apply for a licence in the Dominican Republic will have to pay a fee, depending on the type of licence they require. For a standard casino licence, the fee currently stands at $346,000, while a sports betting licence comes in slightly less at $260,000.
There is also a third type of licence, with a fee of $170,000. It remains unclear exactly what this licence is for, but it is likely for operators looking to run poker, bingo or fantasy sport games.
According to the new legislation, successful licence applications will be valid for five years, and these are non-transferable for an initial three-year period. To succeed in an application, operators must be able to demonstrate evidence of responsible gambling initiatives, including things such as self-exclusion options, time controls for gaming sessions and responsible gambling messaging.
Information about taxation for online casino operators has not been made clear in the new regulation. However, the rules are expected to follow the 29% GGR rate in place for land-based casinos in the country.
What Does the Future Hold?
This is an exciting time for online gambling in LatAm, and it’s a region that operators from around the world have been monitoring closely. The new resolution in the Dominican Republic will open the doors and welcome a number of new operators into the country, and we could see other LatAm nations follow suit and introduce their own online gambling frameworks.
