The Dominican Republic has taken a significant step towards bringing thousands of lottery betting shops under a regulatory framework.
For years, many of these shops have operated outside of the regulatory framework. In 2022, the country launched an effort to change that, but efforts to bring full regulatory oversight stalled for some time.
SBC Noticias reports that a new bill has officially passed first reading in the Senate Plenary aiming to achieve just that.
The framework aims to bring more than 71,000 shops under authorities’ oversight, giving those who have remained in the grey sector a chance to fully legalise their operations.
The bill mandates the creation of a special registry through which lottery shop operators will be able to verify their legal status and demonstrate compliance with all applicable licensing and tax obligations.
Failure to comply will lead to licences being revoked, shop closures or financial penalties.
SBC Noticias added that through strengthened oversight, the bill is expected to increase government tax revenues while tackling illegal gambling, preventing underage play, and minimising the risks of money laundering.
While generally approving of the legislative progression, attorney Yamile Gutiérrez cautioned that any push to improve tax compliance within the regulated sector should come as part of a wider strategy to combat the black market, otherwise there could be a risk of destabilising the regulated one.
She added: “Illegality does not pay taxes, does not implement money laundering prevention programs, does not protect consumers and does not apply responsible gambling mechanisms.
“Therefore, any effort aimed at strengthening the collection must be accompanied by forceful actions to face illegal operations.”