Dominican betting representatives estimate that the tax increase would lead to 75 percent illegality.
Dominican Republic.- From the National Association of Sports Betting of the Dominican Republic, they described the Selective Consumption Tax on gambling set at 16 percent as "unfeasible". Representatives of sports betting estimate that thanks to this new tax, informality would increase from 50 to 75 percent.
In this regard, Jefrey Espinal, vice president of the Sports Betting Association, completely rejected the tax proposed in the Government's Fiscal Reform initiative.
According to the local site N, Espinal estimates that it would be more convenient if the authorities apply Law 139-11, on Tax Reform, more rigorously, and thus charge tax evaders, regulating the entire gambling sector. Espinal estimates that informality is around 50 percent and with greater control, the authorities would manage to collect more.
“The 16 percent Selective Consumption Tax on the gambling sector, which is not applied anywhere else in the world, would bankrupt our sector,” Espinal assured, who went to the National Congress to express his rejection of the 16 percent tax on gambling, established in the Fiscal Reform presented by the Dominican government on October 7.
The representative of the Dominican sports betting estimates that applying that tax would lead to a drop in games and consequently, the goal of collecting more would not be achieved.
See also: Circe Almánzar asks for online gaming to be regulated in the Dominican Republic: "It could be a very important source of income for the government"
The Dominican government, through the Minister of Finance, Jochi Vicente, announced on Monday, October 7, the details of the fiscal reform or modernization. According to the official, the goal of the reform is “to meet the demands of the citizens concerning basic services, which also suggests an increase in public spending”.
The Government reported that with the proposed fiscal reform presented this Monday, it aims to increase collections by RD$122,486.6m, equivalent to 1.5 percent of GDP.
The proposal includes a new selective tax on gambling, with the goal of collecting RD$1,512m (USD24.7m). Also, the Government proposes that from the reform, the exemption for the importation of gambling machines and devices would be eliminated. In addition, the proposal establishes that the maximum retention on prizes or winnings obtained in gambling would increase from 25 to 27 percent.
Jonvic Remulla urged mayors to regularly check businesses.
The Philippines.- Jesus Crispin Remulla, secretary of the Department of the Interior and Local Government (DILG), has called on mayors to regularly check business establishments to ensure that they are not operating as illegal offshore gaming operators.
During a Commission on Appointments hearing, Remulla said some illegal offshore gaming operators had applied for permits under the guise of running legitimate businesses such as resorts or restaurants.
He said the authority to issue, suspend, or revoke business and occupancy permits was a key tool in combating such illicit activities. Based on the Local Government Code of 1991, a mayor has the power to suspend or revoke licences and permits for any violation of the law.
Remulla noted an incident in Lapu-Lapu City, where an alleged restaurant was exposed as a front for offshore gaming operations.
He said: “The biggest disguise that they [offshore gaming operators] are going through now is that they are applying for resorts and restaurants. So it is in the power of the mayor to visit the establishments and make sure that what is going on is exactly what is intended.”
“It is really up to the mayors when they issue business permits, occupancy permits, they have to inspect the premises and to make sure that what is intended for is happening,” he added.
See also: PAOCC warns of former gaming workers running scam farms
Senator Sherwin Gatchalian has called on the Department of Labor and Employment (DOLE) to take proactive measures to cancel alien employment permits (AEPs) issued to offshore gaming workers. During discussions on the DOLE’s proposed budget for 2025, Gatchalian said: “Offshore gaming operators are morphing into something else so they could stay in the country and continue their scamming activities.
“We need a very proactive approach to cancel and eventually send these workers to their country of origin and we need the entire government machinery to work together to cut the legal basis for these individuals to stay in the Philippines.”
On November 5, President Ferdinand R. Marcos Jr. issued Executive Order (EO) 74, ordering an immediate ban on offshore gaming. The order requires offshore gaming operators and related auxiliary and ancillary services with issued licences to wind up by December 3.
The DOLE reported that it issued around 15,819 AEPs in 2024. However, since the president’s announcement of the ban, approximately 36,000 AEPs have been revoked. The DOLE said it is collaborating with the Bureau of Immigration (BI) to make sure working visas associated with offshore gaming-related activities are terminated, preventing foreign nationals from remaining in the country illegally.
