How to Apply for Online Gambling License in the Dominican Republic
Casino licenses in the Dominican Republic are issued by the Casino Department within the Finance Secretariat. However, the final evaluation of the applications is made by the National Casino Commission which is supervised by the Finance Secretary (acting as Chairman), the Interior and Police Secretary, the General Director of Tourism and the Interior Taxes General Director.
The Dominican authorities grant licenses mainly to land-based casinos for the purposes of tourism promotion.
However, in February 2011 the first (and at the moment of writing this the only) online gambling license in the Dominican Republic was issued to the Amaya Gaming Group Inc., an entertainment solutions provider for the gaming industry.
Licensing Procedure
Currently the procedure of obtaining a Dominican gambling license only refers to land-based casinos. Nevertheless, after granting the first online gambling license to Amaya Gaming Group Inc. the Casino Department is expected to soon provide the requirements for the corresponding procedure.
So far in order to obtain a land-based (offline) casino licence, gambling operators have to meet the following requirements:
- Potential operators need to be owners, lessees or licensees of a first class hotel. However, licensees can delegate the management of the casino to a third party. In that case, the manager will be responsible for complying with the casino legislation and the payment of gaming taxes.
- The gambling facilities must be located in the area considered of interest for tourists.
- The operator should be solvent and its shareholders or partners should have a good reputation.
Applications for a casino licence have to be directed to the Secretary of Finance and must contain the following information and documentation:
- The nature of the games that would be installed and a description of how they work;
- Admission conditions to the gaming venues;
- Maximum limits on the accepted bets;
- Operating hours;
- Attractions and bonuses offered to players;
- Receipt that demonstrates the payment of the application fee (RD. 4.00)
- Feasibility Study: Outline of the project, investment, infrastructure (drawings, photos, etc), plans to install the tables, machinery, tourism projection.
- A copy of all documents related to the incorporation of the corporation that will operate the casino;
- Certification stating that the operating company has no outstanding debts with the Department of Project Development and Finance Project of the Central Bank (Dept. de Desarrollo y Financiero de Proyectos del Banco Central);
- All casinos need to have a responsible administration. The names, profession, address and identification documentation of officers and managers must be declared and added to the register of the National Casino Commission. Any changes in the administration must be communicated to the National Casino Commission.
- Members of the "responsible administration" cannot be substituted by other persons (individuals or companies) without the previous authorization of the Casino Department. Also no licence can be transferred without the previous authorization granted by the commission.
After the application is evaluated by the National Casino Commission they submit a report establishing their conclusions. On the basis of these conclusions, the Executive Branch of the government will make the decision on whether the licence can be granted to the operator. If the casino is deemed as eligible, the licence is issued by the Casino Department of the Finance Secretariat.
Casino licenses in the Dominican Republic can be modified or cancelled by the government for reasons of public order or a grave breach of the requirements or obligations established by Law No. 351.
Underage gambling in the Dominican Republic is strictly prohibited.
Land-based casinos are allowed to offer their services to customers from 04:00 pm to 06:00 am. According to Decree 308-06, providing alcohol to players is only allowed from 12:00 pm and from 2 am on Saturdays and Sundays.
Casinos are now allowed to conduct their operations in any currency.
New Legislation
So far the Dominican Republic still faces the serious issue of illegal gaming. Seeking to resolve the problem the head of the Minister of Finance announced the bill that was aimed at imposing a ban on slot machines in all public places, except for casinos.
This bill was finally introduced to the Senate in April 2010 and is supposed to be discussed in the current legislative framework. Under the updated legislation passed in mid-2011 new licenses for the operation of sports betting agencies will not be grated for a 10-year period.
The major changes proposed by the bill regard the following:
- Licence revocation
The bill will void all licenses issued for the operations of slot machines in venues different than casinos. Operators will have to cease all slot machine operations within 60 days after the bill is implemented.
- Casinos
Only casinos legally established would be eligible for obtaining casino licenses in the Dominican Republic for the operation of slot machines within its installations. Otherwise, the operation of slot machines by in venues different than casinos would be considered illegal.
- Tax Raise
The bill introduces new tax rates that vary depending on the location of the gambling facilities:
| Location | Tax |
|---|---|
| National District and in the province of Santo Domingo | RD$ 5,000 (approx. US$136) per machine |
| Provinces of Santiago de los Caballeros, La Altagracia and La Romana | RD$4,500 (approx. US$122) per machine |
| Provinces of San Pedro de Macoiris, Andres Boca Chica and less developed provinces | RD$4,000 (approx US$108) |
The commented fixed amounts can be readjusted every year. The tax hikes proposed by the bill are not significantly different from the tax amounts established for the 2010-2011 period.
This bill is now strongly supported by the public and private sectors. While the bill is being discussed, authorities have increased pressure on illegal operators. Police and judicial officials organized several raids in order to seize and destroy illegal gaming machinery.
Taxes and Fees
Casinos have a special Income Tax regime. The applicable tax is a fixed amount that will vary depending on the geographical location of the casino and the number of tables and machines operated. The fixed amounts were recently modified by a new law approved in the Dominican Senate on June 22, 2011. The new law affects mainly casino operation and reforms different parts of the tax regime applicable to the gaming operation in general.
The reform was based on the need of the Dominican Republic to raise capital to comply with IMF obligations and fund additional educational programs.
For casinos operating in the Dominican Republic, the following fixed monthly amounts will be applicable:
| Operations | Tax |
|---|---|
| Wins in lottery, sports betting, internet and phone gaming | fixed 15% tax |
| Winnings in slot machines | 3% tax |
| Phone and internet gaming | 10% of gross operations |
| Slot machines operating | 5% tax on gross operations of each machine regardless of the location |
| Casinos operating between 1 and 15 tables | RD$ 32,500 (approx. US$ 855) for each gaming table. |
| Casinos operating between 16 and 35 tables | RD$ 37,500 (approx. US$ 986) for each table that exceeds the previous limit. |
| Casinos operating more than 36 tables | RD$ 50,000 (approx. US$ 1,310) for each table that exceeds the previous limit. |
| Sports betting agencies in Santo Domingo, the National District, San Cristobal, Santiago de lod Caballeros, San Francisco de Marcois, Puerto Plata adn La Vega | fixed annual tax RD$ 225,000 (approx. US$ 5,900). |
| Sports betting agencies in other provinces | RD$150,000 (approx. US$.3,946). |
| Sports betting agencies | monthly 1% tax on gross sales |
The commented tax amounts will be adjusted every year to take into consideration the total consumer price index. Prior to the reform, the increase was limited to 7 percent. However, the new regulation clearly established that the tax raise will be based on the total variation of the consumer price index.
In addition, prior to the regulation, the casino tax was based on the location of the venue. Under this reform the taxes apply to all casinos regardless of their location.
Casino venues can withdraw or introduce gaming tables in three month periods if they obtain a previous approval from the Casino Department.
For more details regarding the legislation and general requirements for obtaining a gambling licensing, please refer to the Dominican Casino Department of the Finance Secretariat or contact us for a free consultation and we'll help you find the best jurisdiction for your project.
Casino Department of Finance Secretariat
Av. México No. 45, Santo Domingo.
República Dominicana, Postal Code 1478.
Telephone: (809)- 687-5131 (2120).
