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In light of the reactivation of the plan for the regularization of lottery outlets and betting shops, the government of the Dominican Republic has strengthened regulations related to the gambling sector. The move has been made via Decree 197-26, which will help address the backlog of applications and ensure that the industry is formalized.
It is reported that the measure comes against a backdrop of a significant backlog of unresolved regularization requests after the deadline expired back in 2022 when the Ministry of Finance was managing the procedure. Currently, the Ministry of Finance and Economy is the institution overseeing the procedure.
Experts Sound the Alarm Bells about the Risks of Increasing Regulations
Despite the government trying to impose order and increase transparency in the gambling market, certain concerns have emerged from specialists in the field. Gambling law expert Yamile Gutiérrez, for instance, claims that the increasing number of regulatory measures may create a risk of uncertainty rather than providing stability in the industry.
Gutiérrez told the local news portal RC Noticias that the new measures imposed by the Ministry of Finance and Economy require companies to maintain strict compliance with the anti-money laundering regulations, as well as risk management and supervision procedures.
What is more, while there are clear guidelines set forth, the compliance expectations imposed by the government have a disparate effect on the operators as well as the market in general, meaning that licensed operators are under more pressure than their competitors operating informally.
Resolutions Make Operators Face Stricter Requirements
For instance, the resolution known as Resolution 217-2025 has increased expectations concerning compliance in such areas as money laundering regulations, among others. On the other hand, Resolution 161-2026 has introduced a new suitability test system according to which all of the shareholders as well as employees will undergo continuous testing to be able to remain in the market.
While the measures introduced by the government comply with the international standards and gambling laws set forth by Law 155-17, Gutiérrez believes that the lack of specific criteria may lead to administrative discretion in some cases.
Unresolved Issues of the Regularization Process
Additionally, even though Decree 197-2026 opens up a new period of regularization for betting shops, there are still certain challenges ahead, such as maintaining the required distance between betting shops, establishing the required operational seniority, and addressing the existence of the informal market.
Moreover, Gutiérrez highlighted that Teófilo “Quico” Tabar has been appointed head of the Advisory Council that oversees the plan, adding that his experience should make it easier to implement institutional solutions for such a complicated situation.
Need for Comprehensive Legal Reform Is Stressed
One of the crucial topics of discussion in the matter is the necessity to create a better structure of rules for online gambling activities in the country. According to Gutierrez, the fact that there are different resolutions and laws governing the matter could be an obstacle to ensuring the sustainability of operations within the industry.
She argued: “There is an urgent need for a law that updates the regulation system to match the existing reality. Otherwise, we will continue having a system whereby the ones complying with the law are punished while those evading are left alone.”
Balance between Tighter Controls and Regulatory Effectiveness
The continuous efforts aimed at making changes to the regulatory structure demonstrate the intention of the government to improve the oversight. However, whether these actions will have the expected effect or not remains uncertain.
According to Gutierrez, the problem lies not in the need for regulation but in the way such regulation will be done. She stressed: “Regulation is inevitable, yet if there is no clarity and coherence, it may even lead to chaos in the sector and illegal practices.”
This is an important issue as the process of legalization and further development of the industry requires strict regulation in the future.
Source: SBC Noticias
