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A recent draft proposal by the Dominican Republic government to overhaul gambling regulation has stirred alarm within industry circles. The Asociación Dominicana de Casinos de Juego (ADCJ), the trade body representing the nation’s licensed casino operators, went on record to caution that the proposed legislation, while aimed at updating regulation to contemporary standards, had the potential to unintentionally foster illegal gambling activity and destabilize the existing formal industry.
Concerns Over Excessive Restrictions
In a letter signed by ADCJ President David Moniz, the association expressed grave concerns about the bill submitted by the administration of President Luis Abinader. The bill proposes to establish the Dirección General de Juegos de Azar (DGJA), a central authority that will oversee 15 types of gambling activities, including licensing and enforcement of compliance.
The ADCJ contends that the bill suggests a series of “limitations and rigidities” that will have unforeseen repercussions, such as:
- Restrictive trading hours for licensed venues.
- Cancellation or non-recognition of current licenses, destabilizing current legal operators.
- Increased bureaucratic hurdles, especially in license renewal processes.
- Redundant licensing requirements, such as demanding distinct approvals for slot machines that are already covered by current casino licenses.
ADCJ holds the view that such conditions do not reflect operational realities of the industry and can deter legal entry while making it more attractive for unlicensed operators to proliferate.
Lack of Consultation with Stakeholders
Among the association’s principal grievances is the bill’s absence of consultation. The ADCJ referred to its “surprise” that such extensive legislation was put forward without grave discussion with experts from the legal, financial, and operational aspects of the gambling business.
They emphasized that a bill of such importance needs “constructive dialogue” and consultation with those who understand the nuances of the industry. To ignore these observations, the ADCJ warned, would lead to an unbalanced regulatory structure that would fail to achieve its objectives.
Acknowledging Positive Aspects
Despite all criticisms, the ADCJ also acknowledged some progressive elements in the draft law. These include the provision for one regulating institute for every type of gambling activity and the reinforcement of user protection policies, both of which are considered steps towards an updated regulatory framework.
The association holds, however, that these are cancelled out by what they perceive as an “overly restrictive” approach that disregards market reality. Based on foreign experience, the ADCJ explained that overly tight controls have historically driven gamblers and operators into the non-regulated market.
Risks of Encouraging the Black Market
The crux of the ADCJ’s submission is the risk that the proposed regulatory model may spawn illegal gambling operations. The association clarified that unduly burdensome legislation—without proportionate tools for realistic enforcement and market adaptability—can be counterproductive.
“A robust regulatory framework must not be suffocating“, the statement said. “It must strike a balance that invites investment, promotes innovation, and provides ease of compliance, rather than pushing operators beyond the legal environment.”
Willingness to Cooperate
Last but not least, the ADCJ reiterated its willingness to cooperate with the government of the Dominican Republic and lawmakers. The association indicated that it would be pleased to provide its extensive industry experience to help build a regulatory framework that will be fair, enforceable, and capable of sustaining the legal gambling market and deterring illegal activity.
“We are dedicated to helping the development of a complete, fair, and beneficial law for every stakeholder“, Moniz stated.
Throughout the legislative process, the intervention of ADCJ could lead to additional debate and amendments to the proposed law. The future of gambling regulation in the Dominican Republic remains in the hands of lawmakers, who must now decide whether to consider these industry concerns before completing the reform.
Source: YogoNet
